UTX to Partner With LGORF on Vanadium Batteries!$!$
Largo Takes Historic Step Into Advanced VRB Market Largo's exceptionally high quality vanadium (99.5%) is a perfect fit for the main ingredient in vanadium redox flow batteries.
MOU partner's include Vionx, United Technologies Corp. (UTX), Siemens, 3M (MMM), and Jabil (JBL) for the production of vanadium redox flow batteries
Largo Resources announces non-binding M.O.U. with Vionx Energy Corporation
July 18, 2016
TORONTO, July 18, 2016 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQB: LGORF) is very pleased to announce that it has entered into a non-binding memorandum of understanding (the "MOU") with Vionx Energy Corporation ("Vionx"), a company which develops, produces and sells Vanadium Redox Flow Batteries ("VRBs") for utility grid applications. The MOU summarizes the principal terms upon which Largo and Vionx will continue discussions that may lead to the supply by Largo of vanadium electrolyte to Vionx to further the research and development of advanced VRBs utilizing VNX Grid Energy Storage Systems.
Largo and Vionx have agreed to continue discussions aimed at achieving stable pricing and necessary capacity with an industry leading value proposition for VRB systems, utilizing Vionx product technical, cost, and partner advantages combined with Largo supply capacity, cost advantage, and high quality processing capability.
The proposal set out between the parties in the MOU is conditional upon, among other things, the satisfactory completion of due diligence, negotiation and execution of a definitive agreement (the "Definitive Agreement") between Largo and Vionx setting out the terms and conditions of any transaction, approvals of the respective boards of directors and receipt of all necessary regulatory and contractual consents and approvals. In addition and to the extent that the Definitive Agreement, if any, contemplates the use of V205 production from Largo's Maracás Menchen Mine during the term of the Company's current exclusive offtake agreement with Glencore, the prior consent of Glencore would also be required.
The parties contemplate that the Definitive Agreement will provide that Vionx will be Largo's partner for cooperative sales of vanadium products in the utility grid market, and would also see Vionx agreeing to utilize Largo vanadium electrolyte in its VRB systems. The benefits and safety of VRB systems have been proven over the last two decades.
Subject to dealing with the conditions contained in the MOU, Largo and Vionx have agreed to work in good faith over the next 3 months to negotiate a Definitive Agreement, with the understanding that any supply of vanadium electrolyte may not occur for some time thereafter and that Largo may provide either V2O5 or electrolyte depending on the needs of both parties.
"This is a historic first step in establishing the first partnership between a VRB company and a global vanadium producer,"
said Mr. Mark A. Smith, president and chief executive officer of Largo. "We are extremely excited about this opportunity and the industry-leading value proposition that it presents. We are equally excited about joining the world-class ecosystem of Vionx partners including United Technologies Corp., Siemens, 3M, and Jabil".
David Vieau, president and chief executive officer of Vionx, commented "Our partnership with Largo represents the first of its kind in the VRB industry and we are thrilled to be at the leading edge of a transformative phase for the energy storage industry". http://www.largoresources.com/English/investors/news/news-release-details/2016/Largo-Resources-announces-non-binding-MOU-with-Vionx-Energy-Corporation/default.aspx Good Luck To All!$!$!$