UK-based energy storage solutions provider redT energy and US-based Avalon Battery have agreed to merge their businesses to create a £58m global company.
The transaction is subject to shareholder approval and the merged company will be called Invinity Energy Systems.
It is expected to become a leading manufacturer of vanadium flow batteries in the global energy storage market.
Vanadium flow batteries serve as an important alternative to conventional lithium-ion batteries.
A form of non-degrading energy storage, vanadium flow batteries are generally used in industrial-scale solar generation for distributed, low-carbon energy projects.
The combination of vanadium flow batteries and renewable generation provides low-cost clean energy on demand.
Avalon Battery CEO Larry Zulch said: “The merged company will be a world leader in flow batteries. This gives us the platform to compete head-to-head against incumbent lithium-ion giants and in so doing prove that our robust, safe, non-degrading energy storage solutions are the best solutions for delivering the world’s ambitious decarbonisation targets.
“Invinity combines the best of British and North American flow battery expertise. By uniting the strengths of the two businesses under one brand, we can realise the huge potential of this game-changing energy storage technology and unlock significant commercial opportunities worldwide.”
Invinity will be headquartered in the UK and Canada with regional offices in the US, South Africa and China.
The new combined company will have presence in across mainland Europe, the UK, North America, Asia, Australasia and sub-Saharan Africa.
Additionally, the merged company’s development pipeline includes delivering vanadium flow batteries for the UK’s £41m Energy Superhub Oxford.