VRFB has emerged as a preferred renewable energy storage system for industrial and commercial microgrids, renewables integration, EV charging and grid applications.
"The acquisition of patented VRFB electrolyte processing technology along with the utilisation 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," said Largo Resources president and CEO Paulo Misk.
Largo believes the combination of VionX Energy's VRFB technology with its operational and commercial capabilities, will result in immediate synergies and competitive advantages. The company produces vanadium from its Maracas mine in Brazil.
While Largo's revenues will continue to be largely driven by sales in the global steel industry and high-purity aerospace and chemical markets, as vanadium demand from VRFB deployments expands it expects significant growth in this sector.
A secure and reliable supply of high-purity vanadium is a key issue in VRFB which Largo believes can be solved via this vertical integration. Largo Clean Energy will use patented flow battery stack technology and proprietary vanadium electrolyte processing technology to further develop and deploy VCHARGE± battery systems, which can be comprised of 4, 6, 8, 10 and 20 megawatt-hour (MWh) high-quality, modular energy storage options.
Shares in Largo Resources are trading at C$1.14, valuing the company at $643 million.