Invinity Energy Systems shares were up 12.1% to 90.2p in late morning trading on Friday after the energy storage manufacturer celebrated a successful test and validation program by Korean industrial conglomerate Hyosung Heavy Industries.
The company also signed a non-binding memorandum of understanding (MOU) with Hyosung for a global partnership with an exclusive relationship in Korea.
Hyosung announced a successful comprehensive test of Invinity’s 200 kWh energy storage system, which the group purchased in 2020, and validated the project as an adequate addition to its international portfolio of energy assets.
The MOU was signed at a ceremony in Seoul and was attended by Hyosung President and CEO Takeshi Yokota, Executive President Sung Hoon Ahn and Invinity CEO Larry Zulch.
The MOU detailed Hyosung’s intent to act as the exclusive representative for Invinity’s VS3 products across Korea, with the addition of non-exclusive rights to sell the company’s products in Hyosung’s other international markets.
Invinity said that the MOU specifically targets large-scale public procurement tenders, and also anticipates the possibility of Hyosung manufacturing components of Invinity’s VS3 products.
Invinity commented that Korea was an attractive market for the company’s expansion, due to its high per capita energy use, alongside its constrained grid infrastructure and strong government support for renewable and energy storage projects.
The group added that the rising level of lithium-ion battery fires in storage sites across Korea had opened an attractive market opportunity for non-flammable and durable technologies such as Invinity’s vanadium flow batteries.
The parties are currently on track to develop a concrete agreement based on the terms of the MOU.
“Hyosung’s deep global expertise in large-scale electrical infrastructure complements Invinity’s focus on providing the best alternative to lithium batteries for stationary energy storage,” said Invinity CEO Larry Zulch.
“We are thrilled to be developing a close relationship with Hyosung that has the potential to span supply, support, and even manufacturing in South Korea and other markets around the world.”
“This new relationship supports our corporate strategy of building exclusive relationships with strong partners in important markets where we do not currently have a presence.”
