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LONDON - Invinity Energy Systems plc (AIM:IES) (OTCQX:IESVF) has entered into a licensing and royalty agreement with Chinese manufacturer Guangxi United Energy Storage New Materials Technology Limited (UESNT), according to a press release issued on Friday.
The agreement grants UESNT rights to market, sell and manufacture Invinity’s ENDURIUM vanadium flow batteries (VFBs) in China through 2030. UESNT will pay Invinity royalty fees based on delivery volumes plus two one-off royalties upon meeting certain conditions.
The partnership targets production of at least 1.9 gigawatt-hours (GWh) by 2030, with an initial goal of producing 300 megawatt-hours in 2026, subject to UESNT’s confirmation. Final production volumes depend on UESNT securing market demand.
Under the agreement, Invinity gains access to components and completed systems manufactured by UESNT for delivery outside China, potentially reducing manufacturing costs for global projects. The deal also provides Invinity with access to a stable source of vanadium electrolyte in China at a fixed price, sufficient for 6 GWh of VFBs.
The agreement was signed in London by Jonathan Marren, Invinity’s CEO, and Mr. Liao Zhanghui, UESNT Executive Director. The signing ceremony was attended by Xiamen City Mayor Wu Bin, C&D Group Chairman Xu Xiaoxi, and John Edwards, Director of the UK Government’s Office for Investment.
"Through our cooperation with UESNT, we will not only be able to access new demand for our products within the large and growing Chinese market but also target significant cost reductions through supply chain and process improvements," said Marren in the press release statement.
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