Largo Physical Vanadium Validates its Unique Leasing Model with 48 MWh Flow Battery Electrolyte Lease; Storion Energy–TerraFlow Energy Supply Agreement Supports Growth
- Storion–TerraFlow strategic supply agreement to advance vanadium flow battery adoption in the U.S., starting with major 48 MWh Texas flow battery project
- Electrolyte lease agreement further validates LPV's unique vanadium leasing model with first flow battery project; expected to commence early 2027
TORONTO, July 16, 2025 (GLOBE NEWSWIRE) -- Largo Physical Vanadium Corp. ("LPV" or the "Company") (TSX.V: VAND) (OTCQX:VANAF) is pleased to highlight Storion Energy LLC's ("Storion") recently announced strategic supply agreement with TerraFlow Energy Operating LLC ("TerraFlow"), as well as the vanadium electrolyte lease agreement between Storion and the customer of TerraFlow's 9.6 MW, 5-hour flow battery project in Bellville, Texas, which will be one of the largest deployments of its kind in the U.S. Through the lease agreement, LPV's unique vanadium leasing platform will directly support this milestone flow battery project while positioning LPV to supply future Storion long-duration energy storage projects. Further implementation of projects is expected to increase storage fee revenue and reduce vanadium storage costs.
Storion, which manages LPV's physical vanadium holdings as safekeeper, is 50% owned by Largo Clean Energy Corp., a wholly owned subsidiary of Largo Inc. (TSX/NASDAQ:LGO), which also holds a 65.7% interest in LPV. Through Storion's new supply agreement with TerraFlow, Storion will leverage its production of high-quality vanadium electrolyte and power assembly stacks to support TerraFlow's flow battery systems. The supply agreement is anticipated to support growing market demand for safe, scalable, long-duration energy storage solutions in the U.S.
Bellville 48 MWh Flow Battery Project Further Validates LPV's Unique Vanadium Leasing Model
As the first project between TerraFlow and Storion, TerraFlow's flow battery customer has entered into a vanadium electrolyte lease agreement with Storion for the Bellville flow battery project. In accordance with LPV's safekeeping agreement with Storion, Storion acts as safekeeper of LPV's held vanadium and may convert it to electrolyte to supply to vanadium flow battery customers. For the Bellville project, use of LPV's vanadium removes the need to purchase vanadium outright and thereby significantly lowers upfront capital requirements, helping make vanadium flow batteries more cost-competitive and accelerating their broader commercialization.
LPV expects the electrolyte lease to commence in early 2027, when the electrolyte is deployed and the project is expected to reach initial energization. Leading up until the deployment, LPV expects its cost of storing vanadium to decrease as vanadium is removed from storage, reducing costs while unlocking future revenue streams.
Francesco D'Alessio, CEO of LPV, commented: "The lease agreement for the Bellville flow battery project is a clear example of our business model in action: transforming our physical vanadium into a revenue-generating asset that lowers upfront battery costs and supports large-scale adoption of safe, long-duration storage." He continued: "In collaboration with Storion, the Bellville flow battery project highlights LPV's ability to deliver tangible shareholder value from its physical vanadium holdings while directly supporting the need for U.S. energy resilience. The Company expects the strategic supply agreement between Storion and TerraFlow to drive future deployments, creating additional demand for LPV's leased vanadium and supporting the wider adoption of long-duration energy storage solutions."
Advancing LPV's Strategic Role in Supporting U.S. Energy Resilience
LPV expects Storion's recently signed agreements to strengthen its ability to deploy the Company's physical vanadium into long-duration energy storage projects by providing a secure supply of vanadium electrolyte. This collaboration with TerraFlow also advances the development of a domestic vanadium electrolyte and stack manufacturing supply chain in the U.S., supporting U.S. energy resilience and enabling the broader adoption of long-duration storage solutions using vanadium.
Storion leverages LPV's unique vanadium electrolyte leasing capabilities, which are expected to help remove barriers to entry for large-scale energy storage deployments and enable a more competitive cost structure for these systems, providing a clear pathway to challenge the dominance of lithium-ion batteries for utility-scale projects of 10 MWh and greater. This agreement directly aligns with LPV's mandate to generate long-term value for shareholders by facilitating practical, commercial-scale adoption of safe, long-duration vanadium energy storage solutions worldwide.
The Bellville Flow Battery Project
The project will utilize TerraFlow's large-tank format flow battery solution, engineered for safe, stable, and long-life operation. Unlike lithium-based systems, TerraFlow's solution poses no thermal runaway risk and is non-flammable. This distinction is critical for communities evaluating the safety of energy storage installations. The Bellville project is designed to provide resilient, multi-hour energy delivery, help manage grid variability, and support local infrastructure without introducing fire hazards or high maintenance requirements.
About Storion Energy
Storion Energy is bringing energy resilience and security to the flow battery industry by removing the barrier to entry for battery manufacturers with a vertically integrated supply chain providing Power Assembly Stacks and competitively-priced vanadium electrolyte. Storion is a joint venture between Stryten Energy LLC and Largo Clean Energy Corp., a subsidiary of Largo Inc., one of the world's largest and highest-quality vanadium suppliers that will support scalable domestic vanadium electrolyte production to establish a fully integrated vertical supply chain for utility-scale Vanadium Flow Battery Long Duration Energy Storage (VFB LDES) solutions. VFB solutions are a safe and reliable option for Battery Energy Storage Systems (BESS) that need to provide energy storage of four or more hours. Storion has locations in Alpharetta, Georgia, and Wilmington, Massachusetts. Learn more at storion.com.
About TerraFlow Energy
TerraFlow Energy builds long-duration flow battery systems for mission-critical applications. Based in the U.S., the company's large-tank design offers fire-safe, multi-hour energy storage with high serviceability and low degradation. TerraFlow's LDUPS™ (Long Duration Uninterruptible Power Supply) solution is engineered for real-time power conditioning, harmonic filtering, and 10+ hours of discharge for data centers, industrial facilities, and remote operations. All TerraFlow systems are assembled in the United States and built for fast deployment at scale. Learn more at www.terraflowenergy.com.
About Largo Physical Vanadium Corp.
Largo Physical Vanadium Corp. (LPV) aims to provide a secure, convenient and exchange-traded investment alternative for investors interested in having direct exposure to physical vanadium, which is essential to achieve a greener world in key industries such as steel, aerospace and energy storage. Vanadium is non-degrading and fully recyclable when used as electrolyte in vanadium redox flow batteries (VRFBs) and offers carbon reducing attributes when used in steel alloying applications. LPV's strategy is not only to achieve appreciation through the acquisition of vanadium, but to own and actively supply vanadium to end users of VRFBs to advance to integration of renewable energy in long duration storage. This strategy is integral to LPV's business plan, as it necessarily defrays the costs associated with using vanadium in VRFBs through the unique non-degradation characteristics of the metal.
LPV's common shares trade on the TSX Venture Exchange under the symbol "VAND" and on the OTCQX under the symbol "VANAF". For more information, please visit www.lpvanadium.com.
For further information, please contact:
Francesco D'Alessio
Chief Executive Officer
[email protected]
+1.416.861.9797
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement on Forward-looking Information:
This press release contains forward-looking information under applicable securities legislation ("forward-looking information"). Forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements contained in this press release include, but are not limited to, statements regarding the Bellville lease and the TerraFlow supply agreement, the benefits of LPV's VRFB leasing platform, expectations regarding revenue generation and the costs of storing vanadium, expectations regarding shareholder returns, demand for vanadium leasing and the long-duration energy storage market.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks that the benefits of the Bellville lease and the TerraFlow supply agreement will not materialize and projections regarding revenues and costs may not be accurate, and the risks in the section entitled "Risk Factors" in LPV's annual MD&A for the fiscal year ended December 31, 2024, available on SEDAR+ at www.sedarplus.ca. Forward-looking information is based on the opinions and estimates of management as of the date such statements are made. Although management of LPV has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-looking information. LPV does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
