Invinity inks non-binding MoU in China to scale vanadium flow battery manufacturing
Invinity Energy Systems (AIM: IES, OTCQX: IESVF) has signed a non-binding Memorandum of Understanding with Xiamen C&D Corporation Limited to explore establishing manufacturing facilities for its Vanadium Flow Battery projects in Xiamen, China. The signing took place at CIFIT, where the UK is the Country of Honour this year.
An MoU is an early-stage cooperation document rather than a firm contract. It maps intent and scope but is not legally binding. Invinity and C&D, together with a proposed consortium of partners, will now negotiate binding agreements over the coming months.
What’s actually on the table
The MoU envisages C&D, with support from the Xiamen Municipal Government, helping scale local manufacturing of Invinity’s batteries. C&D has also indicated willingness to offer working capital support and provide access to its global supply chain platform, aimed at speeding up procurement, logistics and distribution for large-scale production.
Working capital support is short-term funding to help a business pay for inventory and operations between cash outflows and inflows. A global supply chain platform suggests preferential access to materials, shipping and distribution networks that can cut cost and time.
The proposed consortium and who’s who
- C&D: A state-owned Fortune Global 500 company in supply chain operations and real estate development with annual revenues of approximately $100 billion.
- International Resources Limited (IRL): Hong Kong-based, owner and operator of the Mapochs mine in South Africa, historically one of the largest vanadium producers globally.
- Baojia New Energy: Invinity’s existing manufacturing partner in China.
- Guangxi United Energy Storage New Materials Technology Limited (UESNT): Partnered with Invinity via a strategic agreement signed on 11 July 2025.
In short, Invinity is looking to combine a heavyweight Chinese supply chain operator with a vanadium source, an existing manufacturing partner and a specialist materials partner to build out a more robust China-based manufacturing footprint.
Why this matters for investors
This announcement signals ambition to scale. If converted into binding agreements, the package of municipal support, potential working capital and access to C&D’s supply chain could reduce bottlenecks and compress lead times for Invinity’s vanadium flow batteries. The CEO framed it as strengthening and expanding relationships in Hong Kong and China to meet growing global demand.
China remains the world’s manufacturing centre for many clean tech components. Locating production in Xiamen, with a state-backed partner and local government support, could be strategically important for volume build-out and cost discipline. It also dovetails with the company’s stated focus on large-scale, high-throughput energy storage.
Potential positives
- Scale and speed: Access to C&D’s platform may accelerate procurement and logistics for big orders.
- Funding flexibility: Indicated working capital support, if agreed, can smooth production ramps.
- Supply chain resilience: Inclusion of IRL and UESNT suggests intent to strengthen upstream materials and specialised inputs alongside manufacturing.
- Market signalling: A UK company showcased at CIFIT, backed by state-linked Chinese partners, is a useful validation signal for customers and financiers.
Key caveats
- Non-binding: Nothing is definitive yet. The parties still have to negotiate and sign binding agreements.
- Details not disclosed: No production capacity, capex, timelines, pricing, or ownership structures have been provided.
- Execution risk: New facilities bring operational, regulatory and integration challenges, particularly across jurisdictions.
About Invinity and its technology
Invinity manufactures vanadium flow batteries for large-scale, high-throughput energy storage for businesses, industry and electrical networks. According to the company, its factory-built flow batteries run continually with no degradation for over 30 years, making them suitable for demanding renewable energy applications. Systems range in size from less than 250 kilowatt-hours to tens of megawatt-hours.
The business was formed in April 2020 via the merger of redT energy plc and Avalon Battery Corporation. It reports more than 190 MWh of systems deployed, contracted or awarded across over 90 sites in 17 countries, with operations in the UK, Canada, USA and China.
Numbers and facts at a glance
| Partner headline revenues | ~$100 billion (C&D) |
| Invinity project footprint | 190+ MWh deployed/contracted/awarded |
| Site and country count | 90+ sites in 17 countries |
| Technology lifetime claim | Runs continually with no degradation for over 30 years |
| MoU status | Non-binding, terms to be negotiated |
My take: a strategically smart door-opener
This reads as a thoughtfully assembled coalition: a major Chinese supply chain player, a vanadium-linked resource owner, a current manufacturing partner and a specialist materials firm. If the parties ink binding deals with clear production targets and financing arrangements, it could unlock a step-change in Invinity’s manufacturing scale.
For shareholders, the prize is better cost control and faster delivery as orders scale. The drawback is that today’s RNS is an MoU without hard numbers. Until we see binding terms, capacity plans and capital commitments, the share price may treat this as a credible but early-stage catalyst rather than a fundamental re-rating event.
What to watch next
- Signing of binding agreements, including details on facility scope, timelines and responsibilities.
- Specifics on any working capital facility from C&D, including size and terms.
- Manufacturing capacity targets, localisation levels and expected cost implications.
- Further clarity on supply chain integration with IRL, Baojia New Energy and UESNT.
- Evidence of demand pull-through matching the planned scale-up.
Quote corner
CEO Jonathan Marren said the MoU “formalises our objective to further strengthen and expand our network of valued partners in Hong Kong and China” and that the company aims to “scale up our manufacturing and supply chain operations in the region to meet growing global demand for our products.”
Bottom line
A promising strategic move, clearly aligned with Invinity’s long-duration storage focus. The presence of a Fortune Global 500 partner and municipal support is noteworthy. Now the company needs to convert intent into binding commitments and publish the hard metrics investors care about – capacity, cost, timing and funding. Until then, treat this as a meaningful step in the right direction rather than the destination.
