- Largo (TSX:LGO) and Stryten Energy will form Storion Energy, a 50-50 joint venture that intends to become a top U.S. vanadium electrolyte producer for the rapidly accelerating vanadium flow battery market
- Stryten is an established U.S. lead, lithium and vanadium battery manufacturer
- Largo is a leading vanadium and ilmenite supplier based in Brazil
- Largo stock has given back 8.21 per cent year-over-year and 77.01 per cent since 2019
Largo (TSX:LGO) and Stryten Energy will form Storion Energy, a 50-50 joint venture that intends to become a top U.S. vanadium electrolyte producer for the rapidly accelerating vanadium flow battery market.
Stryten is an established U.S. battery manufacturer with technologies spanning advanced lead, lithium and vanadium redox flow batteries, intelligent chargers and energy performance management software.
The merger involves subsidiaries Largo Clean Energy (LCE) and Stryten Critical E-Storage and is expected to benefit both parent companies through asset and talent synergies, as well as a scale-enabled pathway to growth.
According to Thursday’s news release, Stryten will pay US$1 million in cash to Largo upon closing and contribute US$6 million in cash to fund Storion’s operations.
Besides raw materials, the companies also plan to develop new vanadium flow battery components for the long-duration energy storage market.
Leadership insights
“We expect the Storion partnership with Stryten Energy to be highly beneficial to Largo and its clean energy storage investment strategy,” Francesco D’Alessio, chief commercial officer of Largo and president of LCE, said in a statement. “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, Largo and the vanadium sector as a whole.”
About Largo
Largo is a leading vanadium and ilmenite supplier based in Brazil.
Largo stock (TSX:LGO) is up by 2.93 per cent trading at C$2.46 per share as of 11:47 am ET. The stock has given back 8.21 per cent year-over-year and 77.01 per cent since 2019.
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(Top photo of Largo’s Maracás Menchen vanadium property in Brazil: Largo)