Bushveld Minerals Ltd on Monday announced a joint venture with redT Energy PLC, an energy storage firm.
Bushveld, a vanadium miner with assets in South Africa which also has an energy storage business, said the partnership will see vanadium electrolyte be used in third party-owned vanadium redox flow battery projects developed by redT.
The joint venture will focus on vanadium redox flow battery projects in Europe over an initial period of two years. Its initial target will be 15 megawatt hours of batteries to the market, needing 80 metric tonnes of vanadium from Bushveld.
Bushveld Chief Executive Fortune Mojapelo said: “Driving vamadium redox flow battery adoption will allow Bushveld to command meaningful market share in the growing stationary energy storage market whilst growing long term, structural demand for vanadium.
“Costs to users will be key. On a lifecycle basis vamadium redox flow batteries are competitive but reducing upfront capital costs will speed market wide take-up versus rival technologies. The rental model Bushveld is pioneering will reduce purchase and installation costs, taking advantage of the re-usability and consequent positive residual value of the vanadium electrolyte.”
“In addition, the electrolyte rental model, along with structurally higher demand, will reduce volatility in vanadium prices,” Mojapelo continued.
“This joint venture will deepen and strengthen our relationship with redT and allow Bushveld to develop further expertise in financial modelling and legal structuring of the vanadium electrolyte rental model.”
redT in its own statement said it was “pleased” to announce the partnership with Bushveld.
redT also said Monday it has got the go ahead for the Energy Superhub Oxford project, meaning it can now start production five megawatt hours worth of vanadium redox flow batteries.
The project is a three-year, GBP41 million development part-funded by the UK government. The agreement will Bushveld will supply the vanadium needed.
Bushveld shares were 7.8% lower on Monday shortly after midday in London at 15.68 pence each.
redt shares are currently suspended. In July it announced a merger with Avalon Battery Corp, which is deemed as a reverse takeover under AIM rules, hence the trading suspension.
The merger is a share-for-share acquisition of Avalon by redT, with redT shares valued at 1.65 pence each, valuing Avalon at USD37.5 million.
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