Ivanhoe Electric Secures $35M Investment

By Bobby Samwell • Tuesday, October 15 10:17 • Permanent Link

Ivanhoe Electric Inc. ("Ivanhoe Electric") has announced the signing of definitive agreements between its 90%-owned subsidiary, VRB Energy Inc. ("VRB Energy"), and Red Sun, a prominent Asian investment firm, finalizing the terms of a transaction announced on September 23, 2024. The joint venture, which will receive a $35 million capital increase from Red Sun, is being formed to expand manufacturing and sales of vanadium redox flow battery systems.

As part of the transaction, Ivanhoe Electric and VRB Energy will allocate $20 million of the transaction proceeds to establish a US-domiciled vanadium redox battery business in Arizona. This move is expected to result in the production of 50 megawatts per year of VRB-ESS® vanadium flow batteries.

The establishment of the 51% / 49% joint venture is expected to occur by the end of October 2024, pending certain conditions precedent and certain Chinese regulatory filings. Ivanhoe Electric has completed an 8-K filing of the agreement with the U.S. Securities and Exchange Commission.

Red Sun is described as a prominent Asian investment firm specializing in new energy and advanced technologies, with a diverse portfolio spanning industries such as new energy, new materials, high-end manufacturing, advanced equipment, biopharmaceuticals, modern agriculture, and cultural communication. The group is committed to deepening its investments in new energy storage, positioning itself as a future leader in this rapidly growing sector.

VRB Energy, on the other hand, is a clean technology innovator that has commercialized the largest vanadium flow battery on the market, the VRB-ESS®, certified to UL1973 product safety standards. The company's grid-scale energy storage systems allow for flexible, long-duration energy with proven high performance.

In addition to the joint venture, Ivanhoe Electric combines advanced mineral exploration technologies with electric metals exploration projects predominantly located in the United States. The company aims to support U.S. supply chain independence by discovering and delivering critical metals necessary for the electrification of the economy.

Today the company's shares have moved 2.1% to a price of $9.3. For more information, read the company's full 8-K submission here.

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