Vanadium flow battery M&A: SPAC ups CellCube stake to 25%, up-downstream deal in Australia


SPAC Mustang Energy PLC is increasing its effective stake in CellCube to around 25% while a company launching a vanadium mine project in Australia has injected US$3.5 million in a new flow battery maker.

Mustang Energy increases stake in CellCube

Special purpose acquisition company (SPAC) Mustang Energy has agreed to buy a 27.4% interest in VRFB Holdings Limited from Acacia Resources for US$10.5 million, increasing its stake to 49.5% having already bought 22.1% in April 2021.

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VRFB Holdings Limited is a 50% shareholder in Enerox Holding Limited, a vehicle which owns 100% of Enerox GmbH, the Austria-based vanadium flow battery company better known by its brand name CellCube.

Through the intermediary of VRFB Holdings, the transaction means Mustang Energy will effectively hold around 25% of CellCube’s parent company as does stock-quoted vanadium producer Bushveld Minerals, which owns the other 50.5% of VRFB Holdings.

The two were part of a consortium that invested in Enerox/CellCube in April last year through the VRFB Holdings Limited vehicle, reported by at the time. The consortium in total injected US$30 million into the company to scale up its production of vanadium redox flow batteries (VRFBs) to 30MW by 2022.

Dean Gallegos, Mustang Energy managing director, said: “The opportunity to increase Mustang’s interest in Enerox represents an exciting opportunity for our stakeholders, thanks to Enerox’s research and development initiatives in the energy storage sector, and its state-of-the-art vanadium-based technology.”

CellCube has deployed 130 systems globally totalling 23MWh. Recent notable project announcements include an 8MWh microgrid project in Illinois, US, and a potentially huge rollout in South Africa with Kibo Energy, which just agreed to procure two proof of concept projects to that end.

Richmond Vanadium Technology invests in Ultra Power Systems

Richmond Vanadium Technology, a company launching a vanadium mine in Queensland, Australia, has agreed to invest up to AU$5 million (US$3.5 million) in Ultra Power Systems, a new vanadium flow battery company.

The deal also gives Richmond Vanadium Technology (RVT) the right to supply all vanadium offtake to UPS and give it a seat on UPS’ board. It is subject to RVT’s successful listing on the Australian stock market and completion of due diligence of UPS’ products.

RVT is currently completing a bankability feasibility study for the Richmond Vanadium Project, located in north Queensland where it has five Mineral Exploration Permits for potential vanadium extraction. The company is 25% held by Horizon Minerals, a mid-tier gold producer.

The pre-feasibility study was concluded based on a vanadium price of V2O5 Flake of AU$16.44/lb (US$11.48).

Ultra Power Systems says it is Western Australia’s first vanadium battery manufacturer. It is taking orders for its V40 product, a 6KW/40kWh modular solution which it says is for the ‘harshest of environmental conditions’.

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