Invinity Energy Sys - Q1 2025 Trading Update

31 March 2025

Invinity Energy Systems plc

("Invinity" or the "Company")

Q1 2025 Trading Update

Trading in line with expectations, strong progress made against 12-month plan

Invinity Energy Systems plc (AIM: IES) (AQSE: IES) (OTCQX: IESVF), a leading global manufacturer of utility-grade energy storage, today provides an update on current activities and trading and confirms that it continues to make significant progress in delivering against each of the 12-month corporate priorities set out in September 2024.

Current Trading

The Company confirms that as a result of shipping the orders secured during 2024 by the year end, results for the full year 2024 are anticipated to be in line with expectations. The Company advises that it remains on track to release its audited full year results by the end of June 2025.

The Company also confirms that it is currently trading in line with expectations for 2025. This confirmation is based primarily upon the agreement to supply a 10.8 MWh ENDURIUM battery system to STS Group (financial close expected Q2 2025), the 14.4 MWh order from Everdura Technology Company ("Everdura"), Invinity's strategic partner in Taiwan and the recent announcement that the Company plans to recognise up to £10m of grant income this year in respect of the LODES project announced today, which has now secured approval to proceed.

ENDURIUM Product Update

The Company officially launched its next generation flow battery, ENDURIUM, and announced the first shipment to its partner, Gamesa Electric in December 2024, in line with expectations.

The first ENDURIUM batteries arrived at Gamesa Electric's La Plana site in Zaragoza, Spain, in late January and the Company can confirm that the first ENDURIUM battery has now been fully commissioned. Initial operating data received from the battery has indicated performance in line with expectations.  

The delivery and commissioning process benefited significantly from the extensive testing performed in advance during the product development phase. This, combined with utilising experience gained from deploying more than 2,000 individual flow battery modules across previous product generations, has proven to be extremely valuable for Invinity, our partners and current and prospective customers.

The evolution of ENDURIUM continues to be an iterative process. The Company benefits from extensive live and historic data generated from its operating fleet and is using AI and machine learning algorithms to analyse these datasets to improve operating parameters. This has led to benefits in round trip efficiency, extending life of component parts and improved maintenance schedules across the fleet.

In line with strategic priorities, the Company continues to focus on its plan to reduce ENDURIUM product costs in order to open up as broad a market opportunity as possible whilst supporting improved product margins. The Company has achieved a 24% cost reduction in ENDURIUM since launch via value engineering, supply chain enhancement and performance improvements and anticipates further cost reductions to be realised in line with internal forecasts.

Manufacturing Update

The Company has recently released an improved stack design for use across its product suite and is pleased to confirm that implementation of a semi-automated stack production line remains on track with commissioning expected to occur during late April. This enhancement is expected to double output of stacks at the Bathgate site and further improve quality with only a marginal increase in staffing levels.

The Company retains its manufacturing presence in the UK, Canada and China as well as in Taiwan through its partner, Everdura. As it looks at the significant commercial opportunities available, the Company is actively engaged in discussions to expand its manufacturing capabilities in the United States so as to comply with domestic content requirements for such projects.

Specific guidance has not yet been released by Ofgem on the extent to which a UK manufactured product will be economically advantageous to clients looking to participate in the forthcoming UK LDES Cap and Floor Scheme. The Company is actively working on plans to expand its UK operations through investment and additional UK employment opportunities to make sure that the Company, customers and local communities and supply chains can benefit from such proposals. However, the Company is also well positioned to utilise its international presence to bring the lowest cost to its customers if the final proposals do not benefit UK domestic supply of product.

Following the shipment of the first ENDURIUM units to Gamesa Electric referred to above, the Company is now focused on the manufacture and delivery of the 14.4 MWh ENDURIUM system for Everdura as well as fulfilling the existing VS3 orders including those for the LODES project.

Commercial and Global LDES Market Developments

Looking forward, the size and scale of the opportunities which the Company is actively discussing and negotiating are significantly greater in terms of both number and project capacity than it has seen before. These are principally focused on areas where the Company is not competing directly against lithium-ion solutions and where there is support for non-lithium long duration technology to be deployed at scale.

Despite the recent changes in the U.S. policy environment, the Company is still working actively to close the ENDURIUM projects part-funded by the United States Department of Energy  and is pleased that such funding remains available to the projects. These projects are expected to support 2026 revenues for the Company in addition to a pipeline of other opportunities which the Company is in advanced negotiations to close.

Further to recent announcements concerning the confirmation of the LDES Cap and Floor scheme in the UK, Invinity regards recent policy announcements concerning support for the deployment of LDES globally as very supportive to the Company's future corporate growth ambitions. Invinity expects to leverage these commercial opportunities in both the Company's home markets of the UK (where Invinity announced a partnership with Frontier Power to target up to 2 GWh of project bids), Canada and the United States as well as other markets in Europe and Asia through new and existing partners.

Corporate Update

In line with plans set out in September 2024, the Company is in the process of reviewing its capital allocation with the goal of achieving increased operational efficiency. This programme is being led by new CFO, Adam Howard.

The Company's redomiciliation to the UK from Jersey has resulted in a reduction to corporate overheads and, in continuation of this initiative, the Company recently transitioned to electronic communications for shareholders, which is expected to result in a further modest reduction in administrative expenses. The Company also advises that it intends to cancel its secondary listing on AQSE in order to reallocate these costs to other areas of the business in due course.

Investor Presentation

Invinity's management will hold an interactive presentation to provide shareholders with an update on progress against the Company's 12-month corporate priorities as set out in the Interim Results.

This will take place on Friday 4 April at 10.00 a.m. Those wishing to join the session can sign up to Investor Meet Company for free via this registration link.

Jonathan Marren, Chief Executive Officer at Invinity said:

"I am very pleased to report the significant progress made by our dedicated team against the critical corporate priorities I set out six months ago as part of a 12-month plan. Thanks to our achievements so far, we are increasingly well positioned to capitalise on the extraordinary opportunity ahead of us. I'm looking forward to speaking to many of our shareholders directly this week and answering their questions."

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Notes to Editors

Invinity Energy Systems plc (AIM: IES) (AQSE: IES) (OTCQX: IESVF) manufactures vanadium flow batteries for large-scale, high-throughput energy storage requirements of business, industry and electrical networks.

Invinity's factory-built flow batteries run continually with no degradation for over 25 years, making them suitable for the most demanding applications in renewable energy production. Energy storage systems based on Invinity's batteries are safe, reliable, and economical, and range in size from less than 250 kilowatt-hours to tens of megawatt-hours.

Invinity was created in April 2020 through the merger of two flow battery industry leaders: redT energy plc and Avalon Battery Corporation. With more than 75 MWh of systems already deployed or contracted for delivery across more than 80 sites in 15 countries, Invinity is active in all major global energy storage markets and has operations in the UK, Canada, USA and China. Invinity Energy Systems plc is quoted in the UK on AIM and AQSE and trades in the USA on OTCQX.

To find out more, visit invinity.com, sign up to our monthly Investor Newsletter here or contact Investor Relations on via +44 (0)20 4551 0361 or ir@invinity.com.