Vertically integrated primary vanadium producer Bushveld Minerals has increased its share capital of vanadium redox flow battery (VRFB) maker Enerox by 65.1% through investment firm Enerox Holdings.
The deal, first announced last December, is part of Bushveld’s goal of generating capital to support the growth of VRFB original equipment manufacturers.
Enerox Holdings now has a 90% share in the Austrian VRFB maker following an initial buy in of 24.9%. Enerox owns the remaining 10%.
Bushveld intends to own a minority interest in Enerox Holdings in line with its strategy of holding minority positions in select VRFB OEMs and being a catalyst to mobilise third party financing.
Enerox Holdings is an investment vehicle formed by a consortium, including Bushveld Energy (an 84% owned subsidiary of Bushveld).
Bushveld’s business model includes electrolyte manufacturing and rental, VRFB manufacturing and deployments.
Enerox has a global customer base with over 130 field installations over the past 10 years across five continents. The technical due diligence process revealed that multiple batteries installed in 2008 and 2009 continue to still be in operation – a period of over 10 years.
Under a separate, proposed agreement Bushveld will have a right of first refusal to supply vanadium products to Enerox on the same material terms as any other supplier.
This would provide a future hedge to Bushveld’s position against volatility in the vanadium price once the VRFB market has developed.
Fortune Mojapelo, CEO of Bushveld Minerals, said: ” Despite the global challenges caused by the Covid-19 pandemic, the emerging push to combine efforts to stimulate the global economy and an accelerated energy transition to clean energy has made the timing of this investment ideal.
“Enerox is a leader in this space and with the injection of these new funds it will be able to strengthen its position and take advantage of further growth opportunities.
“Bushveld continues its strategy of supporting growing VRFB companies, partnering with external investors to drive growth capital into the sector and ensuring the growth of vanadium demand in energy storage.”