Largo Clean Energy entered into an asset purchase agreement, pursuant to which it has now acquired certain assets of VionX Energy
Largo Resources Ltd. (“Largo” or the “Company”) (TSX: LGO) (OTCQX: LGORF) is pleased to announce the launch of Largo Clean Energy Corp. (“Largo Clean Energy”), a newly formed company in Delaware (U.S.) whose aim will be to provide safe, long-duration vanadium redox flow battery systems for the fast-growing global renewable energy storage market. Largo Clean Energy has acquired superior VRFB technology that was previously owned by VionX Energy, a company that had been involved in the renewable energy storage market since 2002.
Paulo Misk, President and Chief Executive Officer for Largo, stated: “The acquisition of patented VRFB electrolyte processing technology along with the utilization of industry-leading flow battery stack design and supply of Largo’s reliable, high purity vanadium has culminated in the formation of a uniquely positioned renewable energy storage business. We have also hired key team members previously employed by VionX Energy who we believe have developed one of the most advanced VRFB technologies in the world and when combined with Largo Resources’ proven operational and commercial capabilities, will result in immediate synergies and unparalleled competitive advantages. We are very pleased to welcome this new team into our organization and following the launch of Largo Clean Energy, we expect to drive new VRFB adoption worldwide and capture greater market share of the rapidly growing renewable energy storage sector. This forward-thinking approach also provides new and existing investors with a rare opportunity to capture value from a vertically integrated renewable energy storage investment with a focus on reducing carbon emissions worldwide.” He continued: “The patented VRFB technology and proprietary vanadium electrolyte processing system can deliver cost-competitive performance over a 20+ year life cycle with nominal degradation. In general, the VRFB is intrinsically safe with no fire risk from thermal runaway. Additionally, the contained vanadium electrolyte can be recycled for reuse in other VRFB installments at the end of the battery life. We are confident that these essential attributes make VRFB applications one of the safest and most sustainable options offered in the renewable energy storage market.”
He concluded: “Looking ahead, we are very excited to begin working with this advanced VRFB technology to capitalize on new renewable energy storage opportunities around the world. Largo’s revenues will continue to be largely driven by sales in the global steel industry and high purity aerospace and chemical markets—but as vanadium demand from global VRFB deployments expands in the coming years, we expect significant growth in the VRFB sector. The launch of Largo Clean Energy also provides Largo with additional flexibility to deploy more of its high purity vanadium production into energy storage products. Our goal is to continue contributing to a lower carbon future through the supply of our exceptionally high-quality vanadium products and through the deployment of Largo Clean Energy’s VCHARGE± systems.”
Largo Clean Energy – A Leading, Vertically Integrated Renewable Energy Storage Provider
The launch of Largo Clean Energy creates a vertically integrated energy storage provider for the growing renewable energy storage market. Global energy storage capacity is estimated to grow at a compound annual growth rate (“CAGR”) of 31%, recording over 741 gigawatt-hours (“GWh”) of cumulative capacity by 2030. The VRFB has emerged as a preferred renewable energy storage system for industrial and commercial microgrids, renewables integration, EV charging and grid applications. Through the combination of Largo’s unrivalled high purity vanadium products and today’s launch of Largo Clean Energy’s VRFB business, the Company is confident that it is well positioned to capture a significant portion of future renewable energy storage demand going forward.
Solving a Fundamental Vanadium Supply Problem Associated with VRFB Deployments
The VRFB is well-known for its technical and economic merits, but a fundamental issue that plagues most VRFB deployment projects is the secure and reliable supply of high purity vanadium. We believe that the launch of Largo Clean Energy helps to solve this problem by combining industry leading VRFB technology with Largo’s world class supply of high purity vanadium. Additionally, Largo’s cost-efficient expansion plans are expected to support the anticipated future demand of Largo Clean Energy’s VCHARGE± deployments.
Flexible Use of Largo’s High Purity Vanadium Products
We believe the formation of Largo Clean Energy leverages Largo’s unique position as one of the world’s highest-quality vanadium producers. In building a VRFB business, Largo is moving downstream in order to diversify its product and customer base, and increase its flexibility in any vanadium price environment.
VCHARGE± System: Advanced VRFB Technology with Unrivaled Performance
Largo Clean Energy will utilize the patented flow battery stack technology and proprietary vanadium electrolyte processing technology it now has at its disposal to further develop and deploy its VCHARGE± battery systems with a view of providing safe and continuous energy storage over a 20+ year life cycle with nominal degradation.
Source: Company Press Release