Largo and Stryten Energy to Form Storion Energy for the Manufacture of Vanadium Electrolyte and Battery Components for Long Duration Energy Storage
Largo (TSX/NASDAQ: LGO) announced a joint venture agreement between its subsidiary Largo Clean Energy Corp. (LCE) and Stryten Critical E-Storage to form Storion Energy. The venture aims to establish a leading U.S.-based manufacturer of vanadium electrolyte and battery components for long duration energy storage (LDES).
Under the agreement, both LCE and Stryten will contribute vanadium flow battery-related assets and hold 50% equity interest in Storion. Stryten will pay US$1 million in cash to Largo and contribute US$6 million to Storion over time. The partnership leverages Storion's patented purification process and is expected to accelerate vanadium electrolyte manufacturing and flow battery deployment, potentially increasing demand for vanadium from Largo Physical Vanadium Corp.
Largo (TSX/NASDAQ: LGO) ha annunciato un accordo di joint venture tra la sua controllata Largo Clean Energy Corp. (LCE) e Stryten Critical E-Storage per formare Storion Energy. L'obiettivo della joint venture è quello di stabilire un produttore leader negli Stati Uniti di elettroliti di vanadio e componenti per batterie destinate allo stoccaggio energetico a lungo termine (LDES).
Secondo l'accordo, sia LCE che Stryten contribuiranno con beni legati alle batterie a flusso di vanadio e deterranno ciascuna un interesse azionario del 50% in Storion. Stryten pagherà 1 milione di dollari in contante a Largo e contribuirà con 6 milioni di dollari a Storion nel tempo. La partnership sfrutta il processo di purificazione brevettato di Storion ed è prevista per accelerare la produzione di elettroliti di vanadio e l'implementazione delle batterie a flusso, aumentando potenzialmente la domanda di vanadio da parte di Largo Physical Vanadium Corp.
Largo (TSX/NASDAQ: LGO) anunció un acuerdo de empresa conjunta entre su filial Largo Clean Energy Corp. (LCE) y Stryten Critical E-Storage para formar Storion Energy. Esta empresa tiene como objetivo establecer un fabricante líder en EE. UU. de electrolitos de vanadio y componentes de batería para el almacenamiento de energía de larga duración (LDES).
Bajo el acuerdo, tanto LCE como Stryten aportarán activos relacionados con baterías de flujo de vanadio y tendrán un interés equitativo del 50% en Storion. Stryten pagará 1 millón de dólares en efectivo a Largo y contribuirá con 6 millones de dólares a Storion con el tiempo. La asociación aprovecha el proceso de purificación patentado de Storion y se espera que acelere la fabricación de electrolitos de vanadio y el despliegue de baterías de flujo, aumentando potencialmente la demanda de vanadio por parte de Largo Physical Vanadium Corp.
Largo (TSX/NASDAQ: LGO)는 그 자회사인 Largo Clean Energy Corp.(LCE)와 Stryten Critical E-Storage 간의 조인트 벤처 계약을 발표하고 Storion Energy를 설립했습니다. 이 벤처의 목표는 미국 내에서 바나듐 전해질과 장기 에너지 저장(LED)용 배터리 부품의 주요 제조업체를 설립하는 것입니다.
계약에 따라 LCE와 Stryten은 바나듐 흐름 배터리 관련 자산을 기여하고 Storion의 50%의 지분을 보유합니다. Stryten은 Largo에 현금으로 100만 달러를 지급하고 시간이 지남에 따라 Storion에 600만 달러를 기여할 것입니다. 이 파트너십은 Storion의 특허받은 정제 공정을 활용하며, 바나듐 전해질 제조와 흐름 배터리 배치를 가속화할 것으로 예상되어 Largo Physical Vanadium Corp.의 바나듐 수요를 증가시킬 수 있습니다.
Largo (TSX/NASDAQ: LGO) a annoncé un accord de coentreprise entre sa filiale Largo Clean Energy Corp. (LCE) et Stryten Critical E-Storage pour former Storion Energy. L'objectif de cette coentreprise est d'établir un fabricant leader aux États-Unis d'électrolytes de vanadium et de composants de batteries pour le stockage d'énergie à long terme (LDES).
Dans le cadre de l'accord, LCE et Stryten contribueront des actifs liés aux batteries à flux de vanadium et détiendront chacune un intérêt de 50 % dans Storion. Stryten versera 1 million de dollars en espèces à Largo et contribuera 6 millions de dollars à Storion au fil du temps. Le partenariat exploite le procédé de purification breveté de Storion et devrait accélérer la fabrication d'électrolytes de vanadium et le déploiement de batteries à flux, ce qui pourrait augmenter la demande de vanadium de Largo Physical Vanadium Corp.
Largo (TSX/NASDAQ: LGO) gab eine Vereinbarung über ein Joint Venture bekannt, das zwischen seiner Tochtergesellschaft Largo Clean Energy Corp. (LCE) und Stryten Critical E-Storage zur Bildung von Storion Energy getroffen wurde. Das Ziel des Joint Ventures ist es, einen führenden Hersteller von Vanadium-Elektrolyten und Batteriekomponenten für die langfristige Energiespeicherung (LDES) in den USA zu etablieren.
Im Rahmen der Vereinbarung werden beide, LCE und Stryten, Vermögenswerte im Zusammenhang mit Vanadium-Flow-Batterien einbringen und jeweils 50% an Storion halten. Stryten wird 1 Million US-Dollar in bar an Largo zahlen und im Laufe der Zeit 6 Millionen US-Dollar in Storion investieren. Die Partnerschaft nutzt das patentierte Reinigungsverfahren von Storion und wird voraussichtlich die Herstellung von Vanadium-Elektrolyten und den Einsatz von Flow-Batterien beschleunigen, was potenziell die Nachfrage nach Vanadium von Largo Physical Vanadium Corp. erhöhen könnte.
- Strategic 50-50 joint venture to establish U.S. domestic leadership in vanadium electrolyte production
- Immediate cash injection of US$1M plus US$6M future funding from Stryten
- Partnership expected to increase demand for Largo's vanadium products
- Access to Stryten's expertise as a leading U.S. battery manufacturer
- Reduction in direct control over battery-related assets due to 50% ownership structure
- Additional board seat granted to Stryten despite equal ownership
Insights
This strategic joint venture represents a significant pivot in Largo's business model, potentially transforming its revenue structure and market positioning. The US$7 million total commitment from Stryten (
The formation of Storion Energy strategically positions Largo to capture value across the entire vanadium supply chain. By securing a right of first offer agreement for vanadium products, Largo creates a dedicated sales channel that could provide more stable demand and potentially higher margins than traditional commodity sales. The vertical integration into electrolyte production addresses a critical bottleneck in the flow battery industry while potentially increasing vanadium demand.
For a company with a market cap of
The creation of Storion Energy addresses a important gap in the U.S. domestic energy storage supply chain. The long duration energy storage (LDES) market faces significant growth potential due to grid modernization and renewable energy integration needs. By focusing on vanadium electrolyte production and battery components, Storion is targeting a critical bottleneck in the flow battery industry.
The partnership with Stryten Energy, an established battery manufacturer, brings valuable manufacturing expertise and infrastructure that could accelerate market penetration. The vertical integration from vanadium mining to electrolyte production creates a unique competitive advantage in the North American market, particularly important given the increasing focus on domestic supply chains and energy security.
This joint venture could significantly impact the broader vanadium flow battery market by establishing a reliable domestic supply of high-quality electrolyte, potentially reducing costs and improving accessibility for flow battery deployment. The timing aligns well with increasing policy support for energy storage and grid resilience initiatives.
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Storion Energy LLC (“Storion”) intends to become a leading
U.S. -based manufacturer of vanadium electrolyte - Storion plans to develop additional vanadium flow battery solutions to satisfy projected demand from the long duration energy storage (“LDES”) sector
Francesco D’Alessio, Chief Commercial Officer of Largo and President of LCE, stated: “We expect the Storion partnership with Stryten Energy to be highly beneficial to Largo and its clean energy storage investment strategy. The transaction aims to maximize the value of Largo’s vanadium products, and Storion’s patented purification process, which is expected to accelerate the manufacture of vanadium electrolyte and deployment of vanadium flow battery solutions, which in turn is anticipated to increase the demand for vanadium from Largo Physical Vanadium Corp. (“LPV”), Largo and the vanadium sector as a whole.
Key Highlights
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Position Storion to become a
U.S. domestic leader for vanadium electrolyte production and supply; future plans to develop vanadium flow battery components that are competitively positioned in the large and growing long-duration energy storage market -
Sharing product and industry knowledge with Stryten Energy LLC, a leading
U.S. -based battery manufacturer - Significant synergies are anticipated by leveraging complementary assets and integrating top-tier talent from Largo and Stryten
- Intended to enhance Largo’s strategic position in the rapidly expanding vanadium flow battery market, to accelerate growth and market share
Transaction Details
The key terms of the transaction are summarized below:
- Upon closing of the Transaction (“Closing”), each of LCE and Stryten will contribute certain of its vanadium flow battery-related assets and liabilities to Storion;
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Upon Closing, Stryten will pay
US in cash directly to Largo and contribute to Storion over time a total of$1 million US in cash, for the purpose of funding Storion’s operations;$6 million -
Upon Closing, LCE and Stryten will each hold a
50% equity interest in Storion, with customary pre-emption rights and certain other anti-dilution protections; - Board representation of Storion will be generally proportional to ownership, with Stryten holding one additional seat so long as LCE and Stryten hold similar ownership interests;
- At Closing, Largo will amend its Safekeeping and Supply Agreements with LPV to adjust certain commercial terms, and Largo will assign its Safekeeping Agreement to Storion. In addition, at Closing, Largo and Storion will enter into a separate supply agreement providing Storion a right of first offer, subject to certain terms and conditions, to purchase vanadium products.
Gallatin Capital LLC acted as financial advisor to Largo in connection with the Transaction, and Linklaters LLP acted as legal counsel.
About Storion Energy
Storion Energy intends to bring energy resilience and security to the
About Stryten Energy
Stryten Energy helps solve the world’s most pressing energy challenges with a broad range of energy storage solutions across the Essential Power, Motive Power, Transportation, Military and Government sectors. Headquartered in
About Largo Physical Vanadium Corp.
Largo Physical Vanadium (LPV) aims to provide a secure, convenient and exchange-traded investment alternative for investors interested in having direct exposure to physical vanadium, a metal essential to achieving a greener world in key industries such as steel, aerospace and energy storage. Vanadium is non-degrading and fully recyclable when used as electrolyte in vanadium flow batteries and offers carbon reducing attributes when used in steel alloying applications. LPV offers pure-play exposure to vanadium through its holdings of physical vanadium. LPV's strategy is not only to achieve appreciation through the acquisition of vanadium, but to own and actively supply vanadium to end users of vanadium flow batteries to advance to integration of renewable energy in long duration storage. This strategy is integral to LPV's business plan, as it necessarily defrays the costs to LPV associated with storage of vanadium, and demonstrates the benefits and utility of vanadium, therefore supporting vanadium's value. For more information, please visit www.lpvanadium.com.
About Largo
Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracás Menchen Mine in
Largo is also strategically invested in the clean energy storage sector through its
Largo’s common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol "LGO". For more information on the Company, please visit www.largoinc.com.
Cautionary Statement Regarding Forward-looking Statements:
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of Section 21E of the US Securities Exchange Act of 1934 and Section 27A of the US Securities Act of 1933. Forward‐looking statements in this press release include, but are not limited to, statements with respect to the closing of the Transaction and Storion’s business plans and strategic goals.
The following are some of the assumptions upon which forward-looking statements are based: that the parties to the Transaction will be able to work collaboratively as parties to the joint venture; and the ability of management of Storion to execute strategic goals.
Forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. All information contained in this press release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the risk that the Transaction may not be completed in a timely manner or at all; the failure to satisfy the conditions to the consummation of the Transaction; failure to realize the anticipated benefits of the Transaction; the inability to implement business plans, and other expectations after the completion of the Transaction; any inability to raise additional funds to meet capital requirements and pursue the growth strategy of the joint venture when and in the amounts needed; and other risks and uncertainties detailed in the annual information form of Largo and in its public documents filed on www.sedarplus.ca and in Largo’s filings with the US Securities and Exchange Commission (the “SEC”), including Largo’s Annual Report on Form 40-F for the fiscal year ended December 31, 2023, which was filed with the SEC on March 22, 2024. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
These forward-looking statements speak only at the date of this press release. All subsequent oral or written forward-looking statements attributable to Largo, or any of its associates, directors, officers, employees or advisers, are expressly qualified in their entirety by the cautionary statement above. Largo expressly disclaims any obligation to update such statements other than as required by law or by the rules of any competent regulatory authority, whether as a result of new information, future events or otherwise.
Trademarks are owned by Largo Inc.
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For further information:
Investor Relations
Alex Guthrie
Director, Investor Relations
+1.416.861.9778
aguthrie@largoinc.com
Source: Largo Inc.
FAQ
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