VanadiumCorp dual-track VFB program VanadiumCorp reaffirms dual-track vanadium flow battery program in restructuring plan
VanadiumCorp Resource Inc (TSX-V:VRB) has announced a comprehensive corporate restructuring initiative aimed at positioning the company for both immediate and future business opportunities.
In a statement, the company said that a review of its strategy at its annual shareholder meeting reaffirmed the dual-track strategy of producing and selling vanadium electrolyte for vanadium flow batteries (VFB) and advancing vanadium-titanium-iron mineral resources in Qubec.
VFBs provide the long-duration energy storage necessary for decarbonizing electrical grids.
VanadiumCorp aims to secure long-term access to its significant vanadium deposits at its Lac Dor resource in Qubec, exploring potential joint ventures to accelerate progress and unlock value.
Operationally, the company's first plant in Val-des-Sources, Qubec, began producing high-purity vanadium electrolyte in April 2024. However, a technical issue has limited output to 6,000 litres per month, far below the expected 25,000 litres. The company plans to rectify this by October 2024, aiming to achieve full operational capacity.
The company told investors that despite positive interest from prospective customers, VanadiumCorp's financial condition has significantly deteriorated in the first half of 2024. Debt levels have increased, and revenue receipt has been delayed due to production issues. The company plans to rationalize corporate costs and seek additional equity financing in 2024 to sustain operations.
Ian Mallory, VanadiumCorp’s CEO, expressed disappointment with the inherited financial situation but remained optimistic about the company's fundamentals.
“With vanadium electrolyte, we have the right product at the right time as it is a key ingredient for longer-duration battery storage,” Mallory said in a statement.
“We need to redouble our efforts to streamline the operations of the company, enhance the brand of our product among our target customer base, and generate the expected revenues.”
He told investors he would not receive cash compensation for his role in 2024 to demonstrate cost discipline.