Invinity Energy Systems has confirmed £25 million in conditional gross proceeds from an equity fundraising, handing the British vanadium flow battery developer a substantial capital injection with the UK state as its largest single backer.

A three-part funding package

Announced on 22 October, the raise comprises £10 million from institutional investors, approximately £12.2 million from the UK's National Wealth Fund (NWF) and £2.8 million from retail investors. The company is issuing 250 million new shares at 10 pence each. Invinity had sought up to £5.0 million from retail investors.

The National Wealth Fund's participation is the centrepiece of the package. Chief executive Oliver Holbourn framed the investment as both an energy security play and an industrial policy bet.

"As it scales, Invinity's vanadium flow technology will play an ever more important role in strengthening the UK's energy security and unlocking more home-grown clean power – that's why we are pleased to deepen our support for the company." — Oliver Holbourn, CEO, National Wealth Fund

He added that the cornerstone investment has mobilised the funding Invinity needs to back British manufacturing in Scotland, commercialise its technology and transform itself into a global exporter of UK technology.

Where the money goes

The proceeds will support vanadium flow battery product development and manufacturing expansion in Scotland, alongside commercialisation activity. Vanadium flow batteries store energy in tanks of liquid electrolyte rather than sealed cells, which decouples power from energy capacity and makes the architecture well suited to multi-hour, high-cycle duty.

Market reaction

Trading resumed after a two-day suspension, with the shares at 11.00p — down 38% — and down 44% over 12 months. The issuance of 250 million new shares at 10p helps explain the scale of the move.

The raise matters beyond one company's balance sheet. As renewable penetration grows, grids need storage that shifts power across hours rather than minutes, and flow batteries compete for that role against lithium-ion, iron flow, sodium-ion and thermo-mechanical systems. Invinity's package shows that in the UK, at least, public capital is willing to underwrite domestic flow battery manufacturing.

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