08:43 AM EDT, 10/15/2024 (MT Newswires) -- Ivanhoe Electric ( IE ) (IE.TO, IE) on Tuesday said its VRB Energy unit finalized an agreement to form a vanadium redox flow battery business with China's Shanxi Red Sun.

Ivanhoe will own a 49% stake in the unit that will manufacturer the batteries while Shanxi Red Sun will pay US$35 million for its majority share, with US$20 million going to establish a battery business in the United States.

"Today's signing of the definitive agreements...allows Ivanhoe Electric ( IE ) to retain exposure to growing grid-scale battery markets through the creation of our joint venture," Ivanhoe Chief Executive Taylor Melvin said in a release. "This transaction also provides us with $20 million that we will invest in the establishment of a domestic battery assembly facility in Arizona, capable of producing 50 megawatts per year of VRB-ESS vanadium flow batteries."

Vanadium redox flow batteries are used for large-scale battery storage for power plants, electricity grids and industrial sites.

Ivanhoe shares closed up $0.27 to $12.22 Friday on the Toronto Stock Exchange.