Robert Friedland, Chairman of VRB Energy, and John Wang, Chief Executive Officer, announced that the company has entered into a Strategic Cooperation Framework Agreement with Pangang Group Vanadium and Titanium Resources Co. Ltd. (Pangang V&T). Pangang V&T is the world’s largest producer of vanadium oxide and a listed subsidiary of Panzhihua Iron and Steel, one of the world’s leading steel producers since 1971.
The strategic agreement paves the way for VRB Energy and Pangang V&T to jointly advance the vanadium flow battery industry through a long-term vanadium supply commitment, cooperation on electrolyte leasing, and technology collaboration on VRB Energy’s world-leading VRB® (vanadium redox battery) energy storage systems. The agreement specifically contemplates an equity investment by Pangang V&T into VRB Energy, with the scope for the potential investment to be defined in the coming months.
“VRB Energy is honored to strategically partner with Pangang V&T in the joint development of the vanadium flow battery industry. In addition to being the world’s largest supplier of the key ingredient in VRB systems, Pangang V&T is also passionate about developing the industry as part of its corporate commitment to promoting value-added downstream uses for vanadium,” said Mr. Friedland.
“The world will see more than 1,000 gigawatts of battery capacity added between now and 2050 in support of integrating renewable energy, and our VRB technology is ideally suited for this. A stable vanadium electrolyte supply from Pangang V&T, together with our most advanced, safest and reliable VRB technology will allow us to meet this rapid, long-term growth in demand for utility-scale energy storage.”
Areas of mutual benefit identified in the strategic agreement include:
• Pangang V&T will be VRB Energy’s preferred vanadium electrolyte supplier with a preferential pricing offer, including a commitment to maintain relative stability of the price of vanadium electrolyte;
• Pangang V&T will join with VRB Energy to establish commercial leasing of vanadium electrolyte, including a commitment by Pangang V&T to guarantee the repurchase of the vanadium electrolyte at a mutually-agreed residual value at the end of the lease term;
• VRB Energy and Pangang V&T will cooperate on advancing the state of the art of the technologies relating to VRB® and electrolyte as applicable to energy storage; and
• Both companies have agreed to negotiate in good faith an equity investment by Pangang Group into VRB Energy.
“Vanadium electrolyte is a key component of vanadium redox batteries,” said Mr. Wang.
“Stability in vanadium electrolyte pricing and a leasing option will lower the barrier of entry for many of our customers and enable the increased adoption of VRBs worldwide, further solidifying our leading position in high quality and low cost battery storage solutions for our customers.”