en.Wedoany.com Reported - Invinity Energy Systems (London Stock Exchange: IES) has signed an agreement to supply a 32MWh all-vanadium redox flow battery system to Pacific Steel Group for its Mojave micro-steel mill project in Kern County, California, USA.
The project, supported by funding from the California Energy Commission's Long-Duration Energy Storage program, is expected to become the largest all-vanadium redox flow battery installation in North America. Jonah Steinbuck, Director of the Energy Research and Development Division at the California Energy Commission, stated that the agency supports this clean energy innovation milestone, viewing the project as advancing California's decarbonization goals while strengthening domestic industry. He noted that the long-duration capabilities and versatility of Invinity's all-vanadium redox flow batteries will support the steel mill's operational efficiency and resilience, optimizing the plant's use of clean renewable energy.
The battery system will be integrated with a 40MWp solar power facility to provide reliable renewable energy for this newly constructed steel manufacturing plant. Pacific Steel Group's Mojave micro-steel mill plans to recycle approximately 500,000 tons of scrap metal annually into seismic-resistant rebar, reducing the carbon intensity of steel production through the use of renewable energy and recycled materials. This California steel mill, the first new steel plant built in the state in 50 years, is expected to be one of the cleanest facilities in the United States. Invinity's long-duration energy storage technology will be used to manage solar power generation and provide energy when needed, supporting continuous industrial operations and reducing reliance on traditional energy sources.
Invinity plans to manufacture these battery systems within the United States, with deliveries expected to begin in early 2027, and related revenue to be recognized upon commencement of delivery. Management believes this project will support the expansion of Invinity's manufacturing capabilities in the US and strengthen its position in the industrial-scale energy storage solutions market. The contract also indicates broader adoption of long-duration energy storage technology in energy-intensive industries seeking to reduce emissions and improve energy resilience.
The Mojave micro-steel mill project highlights the role of advanced battery technology in supporting industrial decarbonization. By combining renewable energy generation with long-duration energy storage, the project aims to provide a low-carbon alternative for steel production while maintaining the reliability required for large-scale industrial processes. Invinity believes that demand for such solutions will continue to grow as companies seek to integrate more renewable energy into their operations.
Despite securing this commercial opportunity, the company remains in a state of sustained losses and requires cash investment to support business expansion. Invinity's Endurium VFB systems, manufactured in the UK and Canada and designed for an operational lifespan of up to 30 years, aim to provide safe long-duration energy storage. The company maintains a relatively conservative leverage ratio, and recent updates have emphasized progress in reducing costs, expanding partnerships, and maintaining financing flexibility, though profitability has not yet been achieved.
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