Ivanhoe Electric’s VRB Energy Subsidiary and Red Sun Sign Definitive Agreements for Formation of New Grid Scale Battery Joint Venture Ivanhoe Electric to Allocate $20 million of Transaction Proceeds to Establish US-Domiciled Vanadium Redox Flow Battery Business
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October 15, 2024
Ivanhoe Electric’s VRB Energy Subsidiary and Red Sun Sign
Definitive Agreements for Formation of New Grid Scale Battery Joint
Venture
Ivanhoe Electric to Allocate $20 million of Transaction Proceeds to
Establish US-Domiciled Vanadium Redox Flow Battery Business
PHOENIX, ARIZONA – Ivanhoe Electric Inc. (“Ivanhoe Electric”) (NYSE American: IE;
TSX: IE) Executive Chairman Robert Friedland and President and Chief Executive
Officer Taylor Melvin are pleased to announce today the signing of Definitive
Agreements (the “Agreements”) between the Company’s 90%-owned subsidiary, VRB
Energy Inc. (“VRB Energy”), a subsidiary of privately held Shanxi Red Sun Co.,
Ltd. (“Red Sun”), and certain other affiliates, finalizing the terms of the transaction
announced on September 23, 2024 (refer to Ivanhoe Electric’s September 23, 2024 news
release).
The Joint Venture, which will receive a $35 million capital increase from Red Sun, is
being formed to expand manufacturing and sales of vanadium redox flow battery
systems. In addition to the formation of the Joint Venture, Ivanhoe Electric and VRB
Energy, using $20 million of the transaction proceeds, will establish a separate United
States-based vanadium redox battery business, to be located in Arizona.
Mr. Melvin commented: “Today’s signing of the definitive agreements between our VRB
Energy subsidiary and Red Sun allows Ivanhoe Electric to retain exposure to growing
grid-scale battery markets through the creation of our Joint Venture. This transaction
also provides us with $20 million that we will invest in the establishment of a domestic
battery assembly facility in Arizona, capable of producing 50 megawatts per year of
VRB-ESS® vanadium flow batteries.”
The agreements were signed on October 15, 2024. The establishment of the 51% / 49%
joint venture is expected to occur by the end of the month, pending certain other
conditions precedent, with several post-transfer matters to be subsequently completed
following certain Chinese regulatory filings. Ivanhoe Electric has completed an 8-K
filing of the Agreement with the U.S. Securities and Exchange Commission.
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About Red Sun
Shanxi Red Sun Co., Ltd (“Red Sun”) is a prominent Asian investment firm specializing
in new energy and advanced technologies, with several publicly listed companies under
its umbrella. Red Sun's diverse portfolio spans industries such as new energy, new
materials, high-end manufacturing, advanced equipment, biopharmaceuticals, modern
agriculture, and cultural communication. Guided by a philosophy of sustained financial
backing, comprehensive resource allocation, and targeted industrial development, Red
Sun has recently expanded its focus to include mineral resources, critical materials,
and key technologies in the energy storage supply chain. Moving forward, the group is
committed to deepening its investments in new energy storage, positioning itself as a
future leader in this rapidly growing sector.
About VRB Energy
VRB Energy is a clean technology innovator that has commercialized the largest
vanadium flow battery on the market, the VRB-ESS®, certified to UL1973 product safety
standards. VRB-ESS® is best suited for solar photovoltaic integration onto utility grids
and industrial sites, as well as backup for electric vehicle charging stations. Vanadium
flow battery systems are ideally suited to stabilize isolated microgrids, integrating solar
and wind power in a safe, reliable, low-maintenance, and environmentally friendly
manner. VRB Energy grid-scale energy storage systems allow for flexible, long-duration
energy with proven high performance. VRB Energy is a subsidiary of Ivanhoe Electric.
Website: www.vrbenergy.com
About Ivanhoe Electric
We are a U.S. company that combines advanced mineral exploration technologies with
electric metals exploration projects predominantly located in the United States. We use
our accurate and powerful Typhoon™ geophysical surveying system, together with
advanced data analytics provided by our subsidiary, Computational Geosciences Inc.,
to accelerate and de-risk the mineral exploration process as we seek to discover new
deposits of critical metals that may otherwise be undetectable by traditional exploration
technologies. We believe the United States is significantly underexplored and has the
potential to yield major new discoveries of critical metals. Our mineral exploration
efforts focus on copper as well as other metals including nickel, vanadium, cobalt,
platinum group elements, gold and silver. Through the advancement of our portfolio of
electric metals exploration projects, headlined by the Santa Cruz Copper Project in
Arizona and the Tintic Copper-Gold Project in Utah, as well as other exploration
projects in the United States, we intend to support United States supply chain
independence by finding and delivering the critical metals necessary for the
electrification of the economy. We also operate a 50/50 joint venture with Saudi Arabian
Mining Company Ma’aden to explore for minerals on ~48,500 km2 of underexplored
Arabian Shield in the Kingdom of Saudi Arabia. Website: www.ivanhoeelectric.com.
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Contact Information
Mike Patterson
Vice President, Investor Relations and Business Development
Email: [email protected]
Phone: 1-480-601-7878
Follow us on
Ivanhoe Electric’s Executive Chairman Robert Friedland: @robert_ivanhoe
Ivanhoe Electric: @ivanhoeelectric
Ivanhoe Electric’s investor relations website located at www.ivanhoeelectric.com should be
considered Ivanhoe Electric’s recognized distribution channel for purposes of the Securities
and Exchange Commission’s Regulation FD.
Forward-Looking Statements
Certain statements in this news release constitute “forward-looking statements” or “forward-
looking information” within the meaning of applicable U.S. and Canadian securities laws. Such
statements and information involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements of Ivanhoe Electric, its
projects, or industry results, to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements or information. Such
statements can be identified by the use of words such as “may”, “would”, “could”, “will”,
“intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict”
and other similar terminology, or state that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved. These statements reflect Ivanhoe
Electric’s current expectations regarding future events, performance and results and speak
only as of the date of this news release.
Such statements in this news release include, without limitation statements regarding the
establishment of the Joint Venture by the end of the month, the successful completion of
conditions precedent to closing, the successful completion of post-transfer matters following
Chinese regulatory filings, the success of the businesses of the Joint Venture, the capital
contributions of Red Sun toward the Joint Venture, the establishment, success and funding of
a vanadium redox battery manufacturing business located in the Arizona, and other planned or
potential developments in the businesses of Ivanhoe Electric.
Forward-looking statements are based on management’s beliefs and assumptions and on
information currently available to management. Such statements are subject to significant risks
and uncertainties, and actual results may differ materially from those expressed or implied in
the forward-looking statements due to various factors, including any inability to negotiate and
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sign mutually agreeable definitive agreements; any inability to satisfy all applicable closing
conditions; changes in the prices of copper or other metals Ivanhoe Electric is exploring for;
the results of exploration and drilling activities and/or the failure of exploration programs or
studies to deliver anticipated results or results that would justify and support continued
exploration, studies, development or operations; the final assessment of exploration results
and information that is preliminary; the significant risk and hazards associated with any future
mining operations, extensive regulation by the U.S. government as well as local governments;
changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure
of parties to contracts with Ivanhoe Electric to perform as agreed; and the impact of political,
economic and other uncertainties associated with operating in foreign countries, and the
impact of the COVID-19 pandemic and the global economy. These factors should not be
construed as exhaustive and should be read in conjunction with the other cautionary
statements and risk factors described in Ivanhoe Electric’s Annual Report on Form 10-K and
other filings with the U.S. Securities and Exchange Commission at www.sec.gov.
No assurance can be given that such future results will be achieved. Forward-looking
statements speak only as of the date of this news release. Ivanhoe Electric cautions you not to
place undue reliance on these forward-looking statements. Subject to applicable securities
laws, Ivanhoe Electric does not assume any obligation to update or revise the forward-looking
statements contained herein to reflect events or circumstances occurring after the date of this
news release, and Ivanhoe Electric expressly disclaims any requirement to do so.