- Launch of Largo Clean Energy creates an industry-leading,
vertically integrated vanadium redox flow battery ("VRFB") business
to provide clean energy storage systems to the fast-growing,
long-duration renewable energy storage market
- Acquisition of 12 patent families previously owned by VionX
Energy Corp. ("VionX Energy") with coverage in key jurisdictions to
enable Largo Clean Energy to deploy VionX Energy's battery systems
under Largo Clean Energy's VCHARGE± branding
- Onboarding of core technical team members previously
employed by VionX Energy with decades of VRFB expertise
- Over US$150 million of
investment by VionX Energy in commercially proven VRFB technology
and operational optimizations
- VCHARGE± System: Combination of patented VRFB electrolyte
processing technology, utilization of industry-leading flow battery
stack technology and supply of Largo's high purity vanadium
required in the manufacturing of vanadium electrolyte will result
in unparalleled competitive advantages
- Provides Largo Resources with additional commercial and
growth opportunities for its high purity vanadium products at
attractive overall economics
- Aligned with Largo Resources' goal of contributing to a
lower carbon future through the advancement of renewable energy
storage deployments worldwide
- Opportunity to significantly increase additional shareholder
value
- Webcast and conference call to discuss Largo Clean Energy
and VCHARGE± technology transaction: Wednesday, December 9, 2020 at 10:00 a.m.
ET
TORONTO, Dec. 8, 2020 /PRNewswire/ -- Largo Resources
Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX:
LGORF) is pleased to announce the launch of Largo Clean Energy
Corp. ("Largo Clean Energy"), a newly formed company in
Delaware (U.S.) whose aim
will be to provide safe, long-duration vanadium redox flow battery
systems for the fast-growing global renewable energy storage
market. Largo Clean Energy has acquired superior VRFB technology
that was previously owned by VionX Energy, a company that had been
involved in the renewable energy storage market since 2002.
Paulo Misk, President and Chief
Executive Officer for Largo, stated: "The acquisition of
patented VRFB electrolyte processing technology along with the
utilization of industry-leading flow battery stack design and
supply of Largo's reliable, high purity vanadium has culminated in
the formation of a uniquely positioned renewable energy storage
business. We have also hired key team members previously employed
by VionX Energy who we believe have developed one of the most
advanced VRFB technologies in the world and when combined with
Largo Resources' proven operational and commercial capabilities,
will result in immediate synergies and unparalleled competitive
advantages. We are very pleased to welcome this new team into our
organization and following the launch of Largo Clean Energy, we
expect to drive new VRFB adoption worldwide and capture greater
market share of the rapidly growing renewable energy storage
sector. This forward-thinking approach also provides new and
existing investors with a rare opportunity to capture value from a
vertically integrated renewable energy storage investment with a
focus on reducing carbon emissions worldwide." He continued:
"The patented VRFB technology and proprietary vanadium
electrolyte processing system can deliver cost-competitive
performance over a 20+ year life cycle with nominal degradation. In
general, the VRFB is intrinsically safe with no fire risk from
thermal runaway. Additionally, the contained vanadium electrolyte
can be recycled for reuse in other VRFB installments at the end of
the battery life. We are confident that these essential attributes
make VRFB applications one of the safest and most sustainable
options offered in the renewable energy storage market."
He concluded: "Looking ahead, we are very excited to begin
working with this advanced VRFB technology to capitalize on new
renewable energy storage opportunities around the world. Largo's
revenues will continue to be largely driven by sales in the global
steel industry and high purity aerospace and chemical markets—but
as vanadium demand from global VRFB deployments expands in the
coming years, we expect significant growth in the VRFB sector. The
launch of Largo Clean Energy also provides Largo with additional
flexibility to deploy more of its high purity vanadium production
into energy storage products. Our goal is to continue contributing
to a lower carbon future through the supply of our exceptionally
high-quality vanadium products and through the deployment of Largo
Clean Energy's VCHARGE± systems."
Largo Clean Energy – A Leading, Vertically Integrated
Renewable Energy Storage Provider
The launch of Largo Clean Energy creates a vertically integrated
energy storage provider for the growing renewable energy storage
market. Global energy storage capacity is estimated to grow at a
compound annual growth rate ("CAGR") of 31%, recording over
741 gigawatt-hours ("GWh") of cumulative capacity by
2030[1]. The VRFB has emerged as a preferred renewable energy
storage system for industrial and commercial microgrids, renewables
integration, EV charging and grid applications. Through the
combination of Largo's unrivalled high purity vanadium products and
today's launch of Largo Clean Energy's VRFB business, the Company
is confident that it is well positioned to capture a significant
portion of future renewable energy storage demand going
forward.
Solving a Fundamental Vanadium Supply Problem Associated with
VRFB Deployments
The VRFB is well-known for its technical and economic merits,
but a fundamental issue that plagues most VRFB deployment projects
is the secure and reliable supply of high purity vanadium. We
believe that the launch of Largo Clean Energy helps to solve this
problem by combining industry leading VRFB technology with Largo's
world class supply of high purity vanadium. Additionally, Largo's
cost-efficient expansion plans are expected to support the
anticipated future demand of Largo Clean Energy's VCHARGE±
deployments.
Flexible Use of Largo's High Purity Vanadium Products
We believe the formation of Largo Clean Energy leverages Largo's
unique position as one of the world's highest-quality vanadium
producers. In building a VRFB business, Largo is moving downstream
in order to diversify its product and customer base, and increase
its flexibility in any vanadium price environment.
VCHARGE± System: Advanced VRFB Technology with Unrivaled
Performance
Largo Clean Energy will utilize the patented flow battery stack
technology and proprietary vanadium electrolyte processing
technology it now has at its disposal to further develop and deploy
its VCHARGE± battery systems with a view of providing safe and
continuous energy storage over a 20+ year life cycle with nominal
degradation.
- The VCHARGE± battery system can be comprised of 4, 6, 8, 10 and
20 megawatt-hour ("MWh") high-quality, modular energy
storage options;
- Stack Power Density Unmatched: The VCHARGE± battery
system is based on a proprietary vanadium electrolyte processing
system combined with patented flow battery stack technology,
allowing for 3 times higher power density than most other
competitors;
- Cost-Competitiveness Advantage: The VCHARGE± battery
system can deliver unrivaled Levelized Cost of Storage at
discharge durations greater than 4 hours due to low capital and
operating costs, and from a product life of over 20+ years with
almost no performance degradation;
- One of the Safest Battery Solutions: The VCHARGE±
battery system technology has been proven safe for use in urban
applications in proximity to adjacent structures and densely
populated areas due to its inherent non-flammability;
- Sustainability: Electrolyte contained within a VRFB has
a 100% depth of discharge without any damage to the battery system.
There is also the ability to re-use vanadium electrolyte at the end
of the battery's life which results in a more sustainable battery
option as compared with competitors.
- Disruptive and Exclusive Battery IP: Largo Clean Energy
has acquired the battery technology developed by VionX Energy which
provides a competitive advantage;
- Proven Durability: The VCHARGE± product durability has
been proven and validation of commercial design has been
completed;
- Long-life: The VCHARGE± battery system will employ a
modular architecture based on 1 megawatt ("MW") power and 2
MWh energy building blocks that have been engineered to meet grid
reliability standards and have undergone significant durability
testing demonstrating up to 40 years of stack life.
Transaction Summary – Key Terms
Largo Clean Energy entered into an asset purchase agreement
dated effective November 25, 2020
(the "Purchase Agreement") pursuant to which it has now
acquired certain assets of VionX Energy, including 12 patent
families (the "Assets") out of an assignment for the benefit
of creditors under Massachusetts
law. Closing of the purchase of the Assets was conditional upon
Largo Clean Energy entering into the License Agreement (as defined
below) which occurred today. The Assets were acquired for deemed
net consideration equal to US$3,862,000 that was satisfied through the
issuance of 2,518,453 common shares of Largo (at a deemed price per
common shares of CAD$1.035, being the
5-day VWAP prior to the execution of the Purchase Agreement) and
3,622,007 share purchase warrants of Largo, which have an exercise
price of CAD$0.67 and a term of five
years. In connection with the transaction, Largo Clean Energy has
also entered into a non-exclusive license agreement (the
"License Agreement") with Raytheon Technologies Corporation
in respect of certain technology used by Largo Clean Energy.
Vanadium Redox Flow Batteries: Critical to Harnessing Clean
Energy Generation
Largo believes the VRFB stands out above other battery
contenders as being most ideally suited for large-scale utility,
commercial and industrial renewable energy storage applications.
The VRFB contains a vanadium electrolyte liquid solution that
stores and releases large amounts of energy—and in most cases
simultaneously—over long periods of time. Unlike a conventional
battery, a VRFB uses a vanadium electrolyte to store energy in
separated storage tanks, not in the power cell of the battery.
During operation these electrolytes are pumped through a stack of
power cells, or membranes, where an electrochemical reaction takes
place and electricity is produced.
The VRFB's strengths lie within its longevity, lack of
degradation in performance over time (even after many thousands of
cycles), non-flammability, 100% depth of discharge without any
damage to the battery system and the ability to re-use the vanadium
electrolyte at the end of the battery's life. The electrolyte
solution employed in the VRFB is non-volatile – it is neither
flammable, nor explosive as a result of its high water content and
has very little, or no self-discharge current, which offers a very
high degree of operational safety compared to other battery energy
storage systems. This inherent non-flammability of the water-based
electrolyte used in VRFBs makes them ideal for deployment in
densely populated areas, airports, schools and wooded areas where
mitigating the safety risk caused by fire and smoke is
paramount.
Suitable for both grid and decentralized energy applications,
the VRFB is one of the preferred battery energy storage
technologies that provides an effective solution to address the
challenges associated with grid modernization and stabilization, as
well as renewable energy integration. VRFBs can also be employed in
utility-scale energy storage projects, micro-grids, renewable
energy generation integration, grid smoothing, backup power and in
remote and off-grid power applications.
To learn more about vanadium redox flow batteries and the
growing global energy storage market, please visit the About
Vanadium section of our website at www.largoresources.com.
Webcast and Conference Call Details
Largo Resources' management will host a webcast and conference call
on Wednesday, December 9, 2020,
at 10:00 a.m. ET, to discuss the Largo Clean Energy and
VCHARGE± battery technology transaction highlights.
Conference Call Details:
Date:
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December
9, 2020
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Time:
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10:00 a.m.
ET
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Webcast
Link
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https://produceredition.webcasts.com/starthere.jsp?ei=1412837&tp_key=2d9e303880
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Dial-in
Number:
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Local /
International: +1 (416) 764-8688
|
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North American Toll
Free: (888) 390-0546
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Brazil Toll
Free: 08007621359
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Conference
ID:
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15966189
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Website:
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To view press
releases or any additional financial information, please visit our
Investor Relations section of the Largo Resources website
at: www.largoresources.com/investors
|
About Largo Clean Energy
Largo Clean Energy aims to become a leading supplier of safe,
durable, long-duration grid-scale vanadium redox flow batteries
(VRFB) for the fast-growing global renewable energy storage market.
Our VCHARGE± battery systems use patented battery technology and
proprietary vanadium electrolyte processing to provide customers
with a fully integrated and cost-competitive renewable energy
storage system comprised of power conditioning, system control and
thermal management subsystems. Our VCHARGE± battery systems are
designed to operate at 3 times higher power density than most other
competitors and have been proven non-flammable and safe. The
VCHARGE± battery system also offers a unique, long-duration
discharge of up to 10 hours at full rated power delivering
unmatched performance over a 20+ year life cycle with no
degradation. For more information, please visit
www.largocleanenergy.com.
About Largo Resources
Largo Resources is a leading, vertically integrated producer and
supplier of high-quality vanadium. Largo can service multiple
vanadium market applications through the supply of its unrivaled
VPURE™ and VPURE+™ products, which are sourced from one of the
world's highest-grade vanadium deposits at the Maracás Menchen Mine
located in Brazil. Largo is also
focused on the advancement of renewable energy storage solutions
through Largo Clean Energy and its world-class VCHARGE± vanadium
redox flow battery systems. The Company's common shares are
principally listed on the Toronto Stock Exchange under the symbol
"LGO".
For more information on Largo and VPURE™, please visit
www.largoresources.com and www.largoVPURE.com.
For additional information on Largo Clean Energy, please visit
www.largocleanenergy.com.
Neither the Toronto Stock Exchange (nor its regulatory
service provider) accepts responsibility for the adequacy or
accuracy of this press release.
Forward-looking Information:
This press release contains forward-looking information under
Canadian securities legislation, some of which may be considered
"financial outlook" for the purposes of application Canadian
securities legislation ("forward-looking statements").
Forward–looking information in this press release
includes, but is not limited to, statements with respect to our
ability to build, finance and operate a VRFB business, our ability
to protect and develop our technology, our ability to
maintain our IP, our ability to market and sell our
VCHARGE± battery system on specification and at a competitive
price, our ability to secure the required
production resources to build our VCHARGE± battery
system, and the adoption of VFRB technology
generally in the market. Forward-looking statements can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". All information contained in this news release, other
than statements of current and historical fact, is forward looking
information. Forward-looking statements are subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
Largo or Largo Clean Energy to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to those risks described in the annual information
form of Largo and in its public documents filed on SEDAR from time
to time. Forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made.
Although management of Largo has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. Largo does not undertake to update any forward-looking
statements, except in accordance with applicable securities laws.
Readers should also review the risks and uncertainties sections of
Largo's annual and interim MD&As which also apply.
_________________________________
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1 Wood Mackenzie, Global energy
storage outlook: H2 2020, September 30, 2020;
https://www.woodmac.com/press-releases/global-energy-storage-capacity-to-grow-at-cagr-of-31-to-2030/
|
Contact: Alex Guthrie, Senior
Manager, External Relations, aguthrie@largoresources.com, Tel: +1
416–861–9797