Bushveld to invest $7.5m of its own money
Bushveld Minerals (LON:BMN), a vertically integrated primary vanadium producer, announced on Thursday that a group of investors in Enerox GmbH will allocate $30m to ramp up its annual production capacity to 30MW (120-240MWh) by 2022.
The AIM-listed company said its portion of the investment stands at $7.5m, having paid $5m this week and with the remainder to follow in April.
Bushveld also confirmed it pocketed $8.8m from selling off some of its holding in Invinity Energy Systems.
Bushveld chief executive Fortune Mojapelo commented on the company’s wider strategy:
“Investing in VRFB manufacturers is a part of Bushveld Energy’s strategy, designed to play a catalytic role in mobilising third-party capital to assist VRFB manufacturers scale up of sales and manufacturing capacity in order to meet the fast-growing demand for long duration energy storage solutions.”
“The sell down of our Invinity stake is no reflection of any diminishing faith in the potential of the company,” said Mojapelo.
“We are proud of its achievements and continue to cooperate on other topics, including vanadium supply, vanadium electrolyte rental and the overall growth of the VRFB industry.”
“Our decision is rather informed by our conservative capital allocation strategy across the group, which focuses resources on our mining and processing operations and seeks to place Bushveld Energy on a path to self-fund its future plans,” he added.