Invinity Energy Systems plc (LSE:IES) has reported significant progress in reducing costs for its Endurium battery platform, now targeting at least a 66% reduction in cost per kWh compared with its earlier VS3 systems by late 2026—around 18 months ahead of prior expectations.
The company has initiated more than 50 workstreams focused on engineering improvements, component simplification, and manufacturing efficiencies, aimed at boosting competitiveness and widening its market reach.
Operational Growth and Landmark Projects
Invinity has manufactured or delivered over 40 MWh of systems so far this year, while its installed fleet has discharged more than 8.7 GWh, demonstrating increasing real-world performance.
A key milestone is the 20.7 MWh Copwood project in East Sussex, which is nearing full delivery. Once operational, it is expected to become Europe’s largest vanadium flow battery installation and begin generating grid revenues in the second half of 2026.
Scaling Production and Global Opportunities
The company is advancing plans to expand production capacity globally, including establishing a U.S. manufacturing facility later this year to complement its California service operations.
Management highlighted a growing commercial pipeline spanning commercial, industrial, and data centre customers, along with participation in long-duration energy storage programmes across the UK, Canada, India, and other regions.
Delays Impact Near-Term Revenue Outlook
Short-term revenue expectations have been affected by delays to two solar-plus-storage projects in Hungary, which are now unlikely to contribute in 2026. However, contracts remain in place, and the batteries could be redeployed elsewhere.
Looking ahead, Invinity forecasts potential revenue and grant income of around £14m in 2026, rising to £49m in 2027 and £234m in 2028. These projections remain subject to timing and execution risks, particularly for projects still under negotiation.
U.S. Projects Shift Timeline
Projects linked to the U.S. Department of Energy have also experienced delays. The 12 MWh PNNL project is now expected in 2026, while three additional DOE-supported projects are moving toward final agreements with delivery anticipated from 2027.
The company also confirmed that its 2025 audit is progressing well and expects to publish its annual report by 30 June 2026. Management continues to position cost reductions and pipeline execution as central to achieving leadership in long-duration energy storage.
Outlook Hinges on Execution
Invinity’s outlook remains challenged by ongoing losses and negative cash flow, which weigh on its financial profile.
While technical indicators and valuation metrics are relatively weak, recent strategic progress and expanding commercial opportunities provide some positive momentum. Execution of its growth plans and improvement in financial performance will be critical to its longer-term prospects.
More About Invinity Energy Systems plc
Invinity Energy Systems plc is a UK-listed manufacturer of utility-scale energy storage systems, specialising in vanadium flow batteries designed for long-duration applications.
Its Endurium product range targets commercial, industrial, and grid-scale customers across Europe, North America, and Asia, focusing on delivering safe, durable storage solutions to support renewable energy integration and grid stability.
Leave a Reply