LONDON (ShareCast) - (Sharecast News) - Invinity Energy Systems announced the signing of a memorandum of understanding with Xiamen C&D Corporation to expand its manufacturing presence in China on Monday, marking a step towards significantly scaling up production of its vanadium flow battery technology.
The AIM-traded energy storage firm said the non-binding agreement, signed at the China International Fair for Investment and Trade in the presence of senior British and Chinese officials, envisaged the establishment of new manufacturing facilities in Xiamen.

Under the plans, C&D, a state-owned Fortune Global 500 company with annual revenues of around $100bn, would support Invinity's proposed consortium with working capital, supply chain access, and local government backing.

The expanded consortium included International Resources, owner of South Africa's Mapochs vanadium mine, Invinity's existing Chinese partner Baojia New Energy, and Guangxi United Energy Storage New Materials Technology, with which Invinity entered a strategic partnership in July.

The company said it intended to optimise procurement, logistics and distribution to accelerate large-scale production.

"With the signing of this MoU today in Xiamen, as part of the UK delegation at CIFIT, one of the most influential international investment events in the world attracting delegations from over 100 countries, we are signalling our intention to continue to seek and leverage partners and their relationships to further Invinity's interests globally," said chief executive Jonathan Marren.

"This MoU formalises our objective to further strengthen and expand our network of valued partners in Hong Kong and China across numerous areas.

"We look forward to further progressing our plans to scale up our manufacturing and supply chain operations in the region to meet growing global demand for our products."

Invinity said binding agreements with C&D and the consortium were expected to be negotiated in the coming months.

At 1152 BST, shares in Invinity Energy Systems were up 5.9% at 20.65p.

Reporting by Josh White for Sharecast.com.

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