Invinity Energy Systems (LSE:IES) has signed an agreement to supply a 32 MWh vanadium flow battery system to Pacific Steel Group for its Mojave Micro Mill development in Kern County, California.
Supported by funding from the California Energy Commission’s long-duration energy storage programme, the project is expected to become the largest vanadium flow battery installation in North America, marking a significant milestone for both Invinity and the wider energy storage sector.
Solar-Powered Steel Production to Benefit from Long-Duration Storage
The battery system will be integrated with a 40 MWp solar power installation, providing reliable, on-demand renewable energy to the new steel manufacturing facility.
Pacific Steel Group’s Mojave Micro Mill is designed to recycle approximately 500,000 tonnes of scrap metal each year into seismic-grade steel reinforcing bar, reducing the carbon intensity of steel production through the use of renewable power and recycled materials.
Invinity’s long-duration storage technology will help manage solar generation and provide energy when required, supporting continuous industrial operations while reducing dependence on conventional energy sources.
U.S. Manufacturing Expansion Supported by Major Order
The company plans to manufacture the battery systems within the United States, with deliveries scheduled to begin in early 2027. Revenue associated with the contract is expected to be recognised as deliveries commence.
Management believes the project will support the expansion of Invinity’s U.S. manufacturing capabilities while strengthening its position in the growing market for industrial-scale energy storage solutions.
The contract also demonstrates increasing adoption of long-duration storage technologies in energy-intensive sectors seeking to lower emissions and improve energy resilience.
Strategic Opportunity in Industrial Decarbonisation
The Mojave Micro Mill project highlights the growing role of advanced battery technologies in supporting industrial decarbonisation initiatives.
By combining renewable generation with long-duration energy storage, the project aims to provide a lower-carbon alternative for steel production while maintaining the reliability required for large-scale industrial processes.
Invinity believes demand for these types of solutions will continue to grow as businesses seek to integrate more renewable energy into their operations.
Financial Profile Remains a Key Consideration
Despite securing significant commercial opportunities, the company continues to operate against a backdrop of ongoing losses and cash investment requirements associated with scaling its business.
While leverage remains relatively conservative and recent updates have highlighted progress in reducing costs, expanding partnerships and maintaining funding flexibility, profitability has yet to be achieved.
Technical indicators remain broadly positive due to the strength of the longer-term share price trend, although elevated momentum readings suggest the shares may be vulnerable to short-term volatility.
More About Invinity Energy Systems
Invinity Energy Systems is an AIM-listed energy storage company specialising in vanadium flow battery technology for utility-scale and industrial applications.
Its Endurium VFB systems are manufactured in facilities located in the UK and Canada and are designed to provide safe, long-duration energy storage as an alternative to lithium-ion batteries. The technology is aimed at applications requiring high utilisation, long operating lifespans and enhanced safety characteristics.
With systems engineered for operational lives of up to 30 years, Invinity focuses on enabling greater adoption of renewable energy by providing scalable storage solutions for grid operators, commercial users and industrial customers around the world.
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