Largo and Stryten Energy Finalize Formation of Storion Energy to Strengthen U.S. Energy Resilience and Address Long Duration Energy Storage Needs
Largo and Stryten Energy Finalize
Formation of Storion Energy to Strengthen
U.S. Energy Resilience and Address Long
Duration Energy Storage Needs
TORONTO--(BUSINESS WIRE)--February 4, 2025--Largo Inc. ("Largo" or the "Company")
(TSX: LGO) (NASDAQ: LGO) announces effective Friday, January 31, 2025, the successful
closing of the previously announced transaction between its subsidiary, Largo Clean Energy
Corp. (“LCE”), and Stryten Critical E-Storage, LLC (“Stryten”), an affiliate of Stryten Energy
LLC, to establish a joint venture in Storion Energy LLC (“Storion”).
Storion is a joint venture focused on removing the barriers to entry for battery manufacturers to
domestically sourced, price-competitive components for the flow battery industry, including
vanadium electrolyte. This partnership leverages access to Largo’s high-quality vanadium
supply, Largo Physical Vanadium Corp.’s (“LPV”) (TSX.V: VAND) (OTCQX: VANAF)
innovative electrolyte leasing model and Stryten’s U.S.-based manufacturing expertise to
enhance grid stability and energy security while enabling the broader adoption of vanadium flow
battery solutions.
Francesco D’Alessio, President of LCE, stated: “The closing of this transaction represents a
transformational step for Largo as we advance our investment strategy of integrating into the
fast-growing vanadium flow battery market. Storion Energy now provides a direct channel for
Largo’s high-quality vanadium products into the long duration energy storage sector,
reinforcing our position as a leading and reliable supplier of vanadium.”
He continued: “Through Storion, we are establishing a fully integrated vanadium electrolyte
supply chain in North America, addressing a key challenge for vanadium flow battery adoption
while unlocking new growth opportunities for Largo. Through the combination of Stryten’s
battery manufacturing expertise, Largo’s vanadium expertise and LPV’s innovative electrolyte
leasing model, Storion Energy is well-positioned to deliver innovative, cost-competitive solutions
for long duration energy storage going forward.”
Overview of Transaction:
• Strategic Collaboration: Largo’s high-quality vanadium and sector knowledge, LPV’s
innovative electrolyte leasing model, and Stryten’s U.S. battery manufacturing expertise
combine to provide solutions to strengthen energy resilience and grid reliability
• Vertically Integrated Supply Chain: Storion establishes a domestic supply chain for
vanadium electrolyte and key components in LDES
• Support for Energy Security & Grid Stability: By enabling flow battery components
for scalable LDES solutions, Storion will support U.S. energy independence and grid
infrastructure resilience
• Accelerating Vanadium Flow Battery Adoption: Storion will provide cost-effective
vanadium electrolyte and components, removing key barriers to vanadium flow battery
commercialization
Summary of Transaction Details:
• Each of LCE and Stryten have contributed certain vanadium flow battery-related assets
and liabilities to Storion
• Stryten has paid US$1 million in cash directly to Largo and will contribute US$6 million
over time to fund Storion’s operations
• LCE and Stryten each hold a 50% equity interest in Storion, with customary pre-emption
rights and anti-dilution protections
• Storion’s board composition will be generally proportional to ownership, with Stryten
holding one additional seat
• Largo has amended its Safekeeping and Supply Agreements with LPV and assigned its
Safekeeping Agreement to Storion; Largo and Storion have also entered into a separate
supply agreement, granting Storion a right of first offer for vanadium products
• Required third party consents, which were closing conditions, were received
About Storion Energy
Storion Energy intends to bring energy resilience and security to the U.S. by removing the
barrier to entry for battery manufacturers to domestically sourced, price-competitive electrolyte
used in vanadium redox flow batteries (VRFB) for long-duration energy storage (LDES). Storion
is a joint venture between a Stryten Energy affiliate and Largo Clean Energy Corp., a subsidiary
of Largo Inc., one of the world’s largest and highest quality vanadium suppliers, that will support
scalable domestic electrolyte production to establish a fully integrated vertical supply chain for
utility-scale VRFB LDES solutions. VRFB technology is a safe and reliable option for Battery
Energy Storage Systems (BESS) that need to provide energy storage of four or more hours.
Storion has locations in Alpharetta, Georgia and Wilmington, Massachusetts. Learn more at
www.storion.com.
About Stryten Energy
Stryten Energy helps solve the world’s most pressing energy challenges with a broad range of
energy storage solutions across the Essential Power, Motive Power, Transportation, Military and
Government sectors. Headquartered in Alpharetta, Georgia, Stryten Energy partners with some
of the world’s most recognized companies to meet the growing demand for reliable and
sustainable energy storage capacity. Stryten Energy powers everything from submarines to
subcompacts, microgrids, warehouses, distribution centers, cars, trains and trucks. Its stored
energy technologies include advanced lead, lithium and vanadium redox flow batteries,
intelligent chargers and energy performance management software that keep people on the move
and supply chains running. An industry leader backed by more than a century of expertise,
Stryten has The Energy to Challenge the status quo and deliver top-performing energy solutions
for today and tomorrow. Learn more at www.stryten.com.
About Largo Physical Vanadium Corp.
Largo Physical Vanadium (LPV) aims to provide a secure, convenient and exchange-traded
investment alternative for investors interested in having direct exposure to physical vanadium, a
metal essential to achieving a greener world in key industries such as steel, aerospace and energy
storage. Vanadium is non-degrading and fully recyclable when used as electrolyte in vanadium
flow batteries and offers carbon reducing attributes when used in steel alloying applications.
LPV offers pure-play exposure to vanadium through its holdings of physical vanadium. LPV's
strategy is not only to achieve appreciation through the acquisition of vanadium, but to own and
actively supply vanadium to end users of vanadium flow batteries to advance to integration of
renewable energy in long duration storage. This strategy is integral to LPV's business plan, as it
necessarily defrays the costs to LPV associated with storage of vanadium, and demonstrates the
benefits and utility of vanadium, therefore supporting vanadium's value. For more information,
please visit www.lpvanadium.com.
About Largo
Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced
from its world-class Maracás Menchen Mine in Brazil. As one of the world’s largest primary
vanadium producers, Largo produces critical materials that empower global industries including
steel, aerospace, defense, chemical, and energy storage sectors. The Company is committed to
operational excellence and sustainability, leveraging its vertical integration to ensure reliable
supply and quality for its customers.
Largo is also strategically invested in the clean energy storage sector through its 50% ownership
of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte
production for utility-scale vanadium flow battery long-duration energy storage solutions in the
U.S.
Largo’s common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange
under the symbol "LGO". For more information on the Company, please visit
www.largoinc.com.
Cautionary Statement Regarding Forward-looking Statements:
This press release contains “forward-looking information” within the meaning of applicable
Canadian securities legislation and “forward-looking statements” within the meaning of Section
21E of the US Securities Exchange Act of 1934 and Section 27A of the US Securities Act of 1933.
Forward‐looking statements in this press release include, but are not limited to, statements with
respect to Storion’s business plans and strategic goals.
The following are some of the assumptions upon which forward-looking statements are based:
that the parties to the Transaction will be able to work collaboratively as parties to the joint
venture; and the ability of management of Storion to execute strategic goals.
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”, although not all forward-
looking statements include those words or phrases. In addition, any statements that refer to
expectations, intentions, projections, guidance, potential or other characterizations of future
events or circumstances contain forward-looking information. Forward-looking statements are
not historical facts nor assurances of future performance but instead represent management's
expectations, estimates and projections regarding future events or circumstances. Forward-
looking statements are based on our opinions, estimates and assumptions that we considered
appropriate and reasonable as of the date such information is stated, subject to known and
unknown risks, uncertainties and other factors that may cause the actual results, level of activity,
performance or achievements of Largo to be materially different from those expressed or implied
by such forward-looking statements, including but not limited to: the failure to realize the
anticipated benefits of the Transaction; the inability to implement business plans; any inability to
raise additional funds to meet capital requirements and pursue the growth strategy of the joint
venture when and in the amounts needed; and other risks and uncertainties detailed in the
annual information form of Largo and in its public documents filed on www.sedarplus.ca and in
Largo’s filings with the US Securities and Exchange Commission (the “SEC”), including
Largo’s Annual Report on Form 40-F for the fiscal year ended December 31, 2023, which was
filed with the SEC on March 22, 2024. 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.
These forward-looking statements speak only at the date of this press release. All subsequent
oral or written forward-looking statements attributable to Largo, or any of its associates,
directors, officers, employees or advisers, are expressly qualified in their entirety by the
cautionary statement above. Largo expressly disclaims any obligation to update such statements
other than as required by law or by the rules of any competent regulatory authority, whether as a
result of new information, future events or otherwise.
Trademarks are owned by Largo Inc.
Contacts
Investor Relations
Alex Guthrie
Director, Investor Relations
+1.416.861.9778