Recently, Largo Inc., a vanadium producer, through its subsidiary Largo Clean Energy Corp. (LCE), and long-duration energy storage (LDES) provider Stryten, have signed a definitive agreement to establish the joint venture Storion Energy. The aim is to become a domestic electrolyte supplier for Western battery manufacturers by combining Stryten's proprietary technology with Largo's vanadium pentoxide (V2O5) production capacity from the Maracás Menchen mine in Brazil, thereby eliminating the barriers for U.S. battery manufacturers to domestically source competitively priced electrolytes. Largo Clean Energy, formerly known as Vionx Energy based in Boston, was established through the transfer of full vanadium redox flow battery technology from United Technologies Corporation, with Dr. Xie Wei, the founder of ZH Energy Storage and the former head of development for United Technologies' flow battery products, participating in the technology transfer and construction of Vionx Energy.

Stryten stated that Storion is capable of providing vanadium electrolyte at a price of 2 cents per kilowatt-hour, which is below the U.S. Department of Energy's target of 5 cents per kilowatt-hour for flow batteries that provide at least 10 hours of energy storage. This cost advantage is achieved by leveraging Stryten's technology and Largo's rental strategy through Largo Physical Vanadium, aimed at helping to reduce costs.

Mike Judd, President and CEO of Stryten Energy, pointed out that VRFB technology is expected to completely replace lithium in the utility sector within the next five years, becoming the preferred choice for LDES solutions.

Currently, the cost of vanadium electrolyte largely determines the cost of VRFB systems, which depends on the market price of vanadium. Largo Physical Vanadium offers a unique vanadium rental model, and Storion will have the exclusive right to supply vanadium owned by LPV to the market in the form of vanadium electrolyte, providing investors with a way to invest in physical vanadium assets, which can be stored in vanadium redox flow batteries (VRFBs). This move aims to reduce the cost of obtaining the key mineral (vanadium) for VRFBs and promote additional demand for vanadium.

Francesco D’Alessio, President of LCE, stated that LPV's vanadium electrolyte rental capability will provide a competitive pricing model for VRFBs, challenging the dominance of lithium in utility deployments of 10MWh and above.

VRFB technology is a safe and reliable option that can provide long-duration energy storage of over four hours, helping to ensure grid stability and promote the increased use of renewable energy in U.S. commerce and among consumers. With proper maintenance, VRFBs can last over 20 years without losing energy storage capacity, complementing the lifespan of wind and solar power generation. Vanadium electrolyte is recyclable and maintains 100% capacity over its lifecycle. VRFB systems can be independently scaled in both power and capacity, and this scalability has the potential to significantly reduce costs when discharge time increases, making VRFB the preferred option in the field of long-duration energy storage.

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