My understanding of the new VRFB business model of Largo In a nutshell, the following 2 scenarios are how I understand the new VRFB business model of Largo. I may be wrong. Please feel free to discuss.
1) All of the components of the VRFB, including its most important and most expensive parts, the Vanadium electrolytes, will be sold outright if desired by the end-users. In this scenario the end-users own the electrolytes because they can afford the upfront capital spending. This would likely involve small-capacity batteries.
2) Only the non-electrolyte components of the VRFB will be sold outright to the end-users. The Vanadium in the electrolyte solution will be leased to the end-users by CPC-LPV (the new entity) in exchange for periodic payments (thus providing a low cost solution to the end-users who will save on upfront capital spending). In this scenario CPC-LPV (the new entity owns the physical vanadium under the form of electrolyte.
So where does CPC-LPV get its Vanadium (electrolyte) from to be leased to the end-users? To start with, the initial Vanadium inventory will come from Largo’s “contribution-in-kind” which will consist of exchanging $ millions of Vanadium equivalent products to the new entity in exchange for its common shares. Future arrangements between Largo and the new entity are yet to be disclosed.
My 2 cts
DYODD