The merger between Avalon Battery and redT has hit another milestone, with the pair announcing that they will create a new company, Invinity Energy Systems.
This follows news first unveiled in July 2019 that the two companies would merge to create a “leading player” in the energy storage market. In January, they announced that the merger was set to complete by the end of March.
Both manufacture energy storage systems based around vanadium redox flow battery technology. They have been trialing the merger – albeit explained as a ‘reverse takeover’ in accounting terms – for some time. With Avalon based in the US and redT headquartered in the UK, the pair issued a press release today describing it as a “transatlantic energy storage merger” that “looks to create a global sector leader”.
The deal remains subject to shareholder approval with the new company set to be valued at around £57.7 million. The press release claimed that vanadium flow batteries of the type made by Invinity are “a key competitor to existing lithium-ion technology in the rapidly growing global energy storage market”.
As announced in November last year, Avalon CEO Larry Zulch will also lead the merged entity.
“The merged company will be a world leader in flow batteries. This gives us the platform to compete head-to-head against incumbent lithium-ion giants, and in doing so prove that our robust, safe, non-degrading energy storage solutions are the best solution for delivering the world’s ambitious decarbonisation targets,” Larry Zulch said.
The merger follows redT running into financial difficulties last March, leading it to launch a strategic review of its ongoing business and an emergency fundraising round. Avalon provided the company with a £1.9 million loan in November while the merger completed.
Last week, the company gave a provisional notice that it is to manufacture 2MW/5MWh of vanadium redox flow batteries for Pivot Power, as part of the Energy Superhub Oxford project. Additionally it has unveiled a partnership with vanadium producer Bushveld minerals.
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