Invinity Energy Systems is seeking to raise at least £20 million (USD 26.8m / EUR 23.8m) through a share issue that would reinforce the UK National Wealth Fund's position as the vanadium flow battery maker's anchor backer.

How the fundraising is structured

The AIM-quoted company said the package combines a conditional subscription by the National Wealth Fund (NWF) of at least £10 million with an institutional placing targeting at least a further £10 million. The NWF already holds approximately 19% of Invinity, following an initial £25 million investment in 2024 aimed at commercialising the company's technology and expanding manufacturing in Scotland.

A separate retail offer of up to £5 million could lift the total to £25 million. Under the terms set out, the NWF has agreed to match retail investment pound-for-pound, subject to the overall fundraising not exceeding that ceiling. The raise remains conditional on shareholder approval.

Use of proceeds: product, working capital, factories

Invinity has allocated the initial £20 million across three priorities. Roughly £10 million is earmarked for accelerating product development and reducing production costs on its vanadium flow batteries; £8 million is destined for working capital; and £2 million is to expand manufacturing capacity across the UK and the United States.

The company expects the proceeds to cover its working capital requirements into the first half of 2028 — a runway that matters given the long lead times between a signed pipeline and booked revenue.

Pipeline versus orders

Invinity removed 2028 from its published revenue outlook, citing uncertainty over when prospective battery projects will progress through financing, planning and grid connection processes. Its commercial pipeline stood at approximately 12.8 GWh in September 2026, but only 77 MWh of that represented signed, unconditional orders.

For a sector that depends on multi-year project cycles, the gap between pipeline and contracted volume is the central financing challenge. Invinity's answer is to raise equity now and keep development spending pointed at cost reduction, betting that long-duration storage demand converts into firm orders before the new runway runs out.

This article was assisted by AI analysis. Please refer to the original source for official information.