Bushveld Minerals (AIM:BMN) announced today it is buying a researcher and manufacturer of vanadium redox flow batteries, Enerox GmbH, for $12 million.
Bushveld is buying the business from CellCube Energy Storage Systems.
“Enerox is one of the world’s largest researchers, developers, manufacturers and distributors of vanadium redox flow batteries (VRFBs). It has installed VRFBs at over 130 sites globally,” said Bushveld in a news release.
Bushveld believes is an investment platform for vanadium redox flow batteries. It is also protecting itself against vanadium price volatility.
“Investing in the development and deployment of VRFB technology is a key part of Bushveld’s corporate strategy for several reasons,” said Fortune Mojapelo, CEO of Bushveld Minerals. “Firstly, the market opportunity presented by the widespread adoption of VRFBs is sufficiently attractive to grow Bushveld and generate returns for shareholders. Secondly, by helping to increase the speed and scale of adoption of VRFBs, the company will help boost long term structural demand for vanadium, which is key for our existing primary vanadium production platform. In addition, the combination of vanadium production and commercial exploitation provides a natural hedge for the company against vanadium price volatility.”
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