VRB Energy plans 550 MW capacity across US, China via JV and restructuring

Vanadium redox battery provider VRB Energy has announced its intention to build three new factories, one in the US via a new subsidiary and two in China through a joint venture (JV).

VRB Energy, a majority-owned cleantech subsidiary of metals exploration company Ivanhoe Electric, has partnered with Chinese investment firm Shanxi Red Sun (Red Sun) in a deal worth US$55 million.

The announced deal lays out a transaction term sheet with Red Sun, which forms a new JV called VRB Energy System. Red Sun will own 51% and VRB Energy 49%, with the pair working to manufacture vanadium redox batteries in China and a separate 100% owned subsidiary of VRB Energy, VRB USA, building a factory in the US. Ivanhoe Electric said the deal is expected to close in the fourth quarter of this year.

The press release announced that the restructuring “will allow VRB Energy to concentrate on developing its US-based vanadium redox flow battery systems business.”

In China, VRB Energy System will build a plant with a 300 MW annual production capacity in Shanxi province, including a dedicated electrolyte plant, and given a timeframe of construction completion by 2025. The batteries will be sold mainly to the Asia, Middle East and Africa markets from China. A separate 200 MW manufacturing plant in Hunan province is also planned.

VRB has already been involved with significant flow battery projects, including a 100MW/500MWh project in Hubei, China, which commenced construction in 2021.

Further, the VRB Energy USA plant, with an annual production capacity of 50MW, is planned for Arizona, though a timeframe was yet to be announced. The $20 million received from the JV transaction, expected in two instalments, will fund the new US subsidiary and factory plans.

VRB Energy will retain US patents through the restructuring.

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Taylor Melvin, CEO of Ivanhoe Electric, remarked, “Today’s announcement is a significant milestone for our VRB Energy subsidiary and Ivanhoe Electric’s establishment of a U.S.-based vanadium redox battery business in Arizona, supported by $20 million from the announced transaction. The agreement also allows us to benefit from the JV’s growth in Asia, led by a strong and experienced local partner in Red Sun.”

Charles Ge, VRB Energy’s CEO, added, “Red Sun’s strategic investment in the JV marks a key milestone in our mission to lead the vanadium redox battery market and accelerate the transition to clean energy. The Joint Venture strengthens our role in the global push for decarbonization and sustainable growth.

“By collaborating with Red Sun, we are advancing both our technology and the potential of long-duration energy storage, critical components for renewable energy solutions. Red Sun’s support and investment allow us to scale production, drive innovation, and deliver impactful solutions to meet market demand while shaping the future of energy storage.”