07:45 AM EDT, 10/15/2024 (MT Newswires) -- Ivanhoe Electric ( IE ) said Tuesday that its subsidiary VRB Energy signed definitive agreements with a subsidiary of privately held Shanxi Red Sun and certain affiliates to finalize the terms of their joint venture.

The joint venture, which will expand manufacturing and sales of vanadium redox flow battery systems, will receive a $35 million capital increase from Red Sun, Ivanhoe Electric ( IE ) said. It is expected to be established by the end of the month, with VRB holding a 51% stake and Red Sun holding the remaining 49%, the company added.

Ivanhoe Electric ( IE ) and VRB Energy will invest $20 million of the transaction proceeds in a separate US-based vanadium redox battery business in Arizona, Ivanhoe Electric ( IE ) said.