VRB Energy and Red Sun Team Up for Massive Expansion

We’re Talking Big Numbers Here

You heard it right, folks. VRB Energy estimates that their new production lines will boost their capacity by a staggering tenfold. If you’re wondering what that means, VRB’s current facility is getting a serious upgrade. And where’s all this juice going? Mainly to the Asia, Middle East, and Africa markets. That’s where the action is.

Electrolyte Plant in Shanxi

Hold on, there’s more. Along with the battery production ramp-up, there’s a dedicated electrolyte plant in the works. Funded by Red Sun, this facility will be nestled in Shanxi province. Expected completion? 2025. It’s gonna churn out 5,000 cubic meters of electrolyte annually. Electrolytes are crucial in energy storage, so this is a big deal.

Show Me the Money

So, what’s the deal? Red Sun is putting up some serious cash—$20 million for shares and another $35 million for new shares issued through 2025. Total investment: a cool $55 million. When the dust settles, Red Sun and VRB will own 51% and 49% of the joint venture, respectively.

A Separate US-Based Business

But wait, there’s more! Ivanhoe Electric and VRB have plans for a new, separate vanadium redox battery business in Arizona. After restructuring VRB’s intellectual property, the US patents will be transferred back to VRB. This Arizona gig is no small potatoes, either. It’ll produce 50 megawatts per year of VRB-ESS batteries.

Preferred Supplier Status

Here’s the kicker: this new US operation will use the JV as its go-to for key equipment and electrolyte. Who’s got the control? VRB will own 100% of this US business, backed by that initial $20 million from Red Sun. The vanadium redox flow batteries are gaining traction for their longevity and scalability.

Talk About a Milestone

"Today’s announcement is monumental," said Taylor Melvin, CEO of Ivanhoe Electric. This isn’t just corporate speak, folks. It’s a significant leap forward for VRB Energy and Ivanhoe’s footprint in the US. Supported by a solid $20 million from the transaction, this could reshape the landscape of energy storage.

Wrapping Up

So, here’s the timeline: Ivanhoe expects this whole transaction to close in the fourth quarter of this year. That’s just around the corner. With a bunch of moving parts and big dollars involved, you can bet we’ll be keeping an eye on this one. Energy storage is the future, and VRB Energy and Red Sun seem poised to lead the charge.

The Numbers at a Glance

Here’s a quick breakdown for those who love the details:

And there you have it. It’s an ambitious move, but with the demand for energy storage skyrocketing, this partnership could be a game-changer. Keep watching this space. New York might be the city that never sleeps, but VRB and Red Sun are the companies that keep our batteries charged.