Largo & Stryten form JV to make vanadium electrolyte for long duration storage

Largo (LGO) is pleased to announce the signing of definitive agreements between its subsidiary, Largo Clean Energy LCE and Stryten Critical E-Storage or Stryten, an affiliate of Stryten Energy , to establish a joint venture in Storion Energy, subject to customary closing conditions. Storion intends to become a leading manufacturer of domestically produced vanadium electrolyte and remove other barriers to entry in the flow battery manufacturing industry. 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 LPV , Largo and the vanadium sector as a whole. The key terms of the transaction are summarized below: Upon closing of the Transaction each of LCE and Stryten will contribute certain of its vanadium flow battery-related assets and liabilities to Storion; Upon Closing, Stryten will pay $1M in cash directly to Largo and contribute to Storion over time a total of $6M in cash, for the purpose of funding Storion’s operations; 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…