09:04 AM EST, 02/04/2025 (MT Newswires) -- Largo (LGO.TO) reported Tuesday the closing of a transaction between subsidiary Largo Clean Energy and Stryten Critical E-Storage to establish a joint venture.

Largo's share price jumped 5.3% to nearly US$1.98 at last look in Nasdaq pre-market trading.

The joint venture, Storion Energy, is focused on removing the barriers to entry for battery manufacturers to domestically sourced, price-competitive components for the flow battery industry, including vanadium electrolyte.

Largo said the partnership leverages access to company's high-quality vanadium supply, Largo Physical Vanadium ( VANAF ) 's innovative electrolyte leasing model, and Stryten's U.S.-based manufacturing expertise.

"The closing of this transaction represents a transformational step for Largo as we advance our investment strategy of integrating into the fast-growing vanadium flow battery market," said Francesco D'Alessio, president of Largo Clean Energy.

Under the terms, Stryten paid US$1 million in cash directly to Largo and will contribute US$6 million over time to fund Storion's operations.

Largo Clean Energy and Stryten each hold a 50% equity interest in Storion, with customary pre-emption rights and anti-dilution protections.

"Storion Energy now provides a direct channel for Largo's high-quality vanadium products into the long duration energy storage sector, reinforcing our position as a leading and reliable supplier of vanadium," D'Alessio added.