Richmond Vanadium Technology has signed a Binding Term Sheet to invest up to five million dollars into battery company Ultra Power Systems as part of its ASX initial public offering.
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Under the deal RVT will have the right to supply all vanadium offtake to UPS and will appoint a representative director to the UPS board.
This agreement cements an initial strategic partnership between the two companies in a related industry, demonstrating conversion of RVT's raw material to finished product in Ultra's battery modules.
Vanadium is considered the ultimate element for stationary energy storage and as the world transitions to renewable energy storage, the Vanadium Redox Flow Battery will play a significant part in meeting this demand. Ultra's mixed acid electrolyte confers an energy storage and operating temperature advantage verses mainstream VRFB chemistries.
Under the term sheet RVT will subscribe for up to 20,000,000 shares valued at 25 cents per share in Western Australian energy technology company, Ultra Power Systems subject to a successful listing of RVT on the Australian Securities Exchange, in which the company intends to raise between $25-35 million.
RVT's 1.8Bt Richmond Vanadium Project is located east of Julia Creek and the company has completed a Pre-Feasibility Study which demonstrated a technically viable and financially attractive development project. RVT is currently completing a Bankable Feasibility Study and associated development approvals.
Ultra has developed its own vanadium redox flow battery ("VRFB") system, the Ultra V40 battery module, and a Standalone Power Station which integrates solar and wind turbines into a mobile and scalable power generation system highly suitable for off-grid applications. Ultra's battery is powered by its unique mixed-acid vanadium electrolyte, which provides a 70% higher energy density and a higher temperature capability compared with mainstream vanadium electrolytes.
Ultra is Australia's first VRFB manufacturer, with a business model focused on the design, manufacture, installation, commissioning and maintenance of modular, integrated renewable power generation and energy storage systems through a network of local "flow" partners. Ultra's initial markets, both in Australia and overseas, include off-grid applications within the mining sector (such as bore pumps, exploration camps, mining villages and ultimately full mine electrification), remote communities, community batteries, residential microgrids, and the specific charging demands of the electric vehicle sector. Ultra is intending to list on the ASX during FY23. For more information on Ultra, please visit https://www.ultraenergy.com.au/.
RVT Managing Director, Shaun Ren, said having a partner like Ultra already successfully developing VRFBs contributes to their aim of establishing a significant mine to metal to battery corridor in Australia.
Brad Appleyard, Chairman and CEO of Ultra said, "We are taking the next step in creating a strategic partnership, the additional funding will facilitate the acceleration of Ultra's development and planned modular electrolyte production."
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