Cellcube Battery Storage and Independent Report on the Surge in Vanadium Prices
October 19th, 2018, – Toronto, Canada, CellCube Energy Storage Systems Inc. (“CellCube” or the “Company”) (CSE CUBE) (OTCQB CECBF) (Frankfurt 01X) is pleased to report the following independent article that has been prepared by Mining.com - a leading digital publication covering the global mining sector.
CellCube 100% owned Vanadium Property Bisoni Mackay and Bisoni Rio which is set to spin out November 30, 2018 to a newly formed company V23 Resource Corp. (see news release dated June 28, 2018).
“CellCube's Bisoni McKay and Bisoni-Rio project is one of the largest pure play vanadium projects in North America totalling 4,115 acres and contiguous to the Gibellini deposit held by Prophecy Development Corp.” says Mike Neylan, CEO of CellCube. “CellCube shareholders of record will be able to participate in the newly formed V23 company during a strong vanadium market.”
“Vanadium price leaps to near-record high”
Frik Els Oct 15,18
While not as exciting as the transformation in the auto market with the shift to electric vehicles, demand growth from batteries used for renewable energy storage has the potential to have a bigger impact on mining.
One of the prime technologies that could grab market share from lithium ion for large scale storage systems is so-called vanadium redox flow cells.
The rally in vanadium prices is only accelerating with vanadium pentoxide (V2O5) flake used in energy storage systems leaping to $27.50 a pound in China putting it within shouting distance of the all-time high reached in 2005. V2O5 is up more than 550% since September 2016.
Vanadium pentoxide is only a fraction of the overall market and the raw material is primarily used to strengthen steel (today it makes up more than 90% of the market). Ferro vanadium prices jumped 10% just over the past week also hitting a 13-year high to $118 a tonne in Europe. In 2005 vanadium prices briefly peaked at $120 a tonne.
While the long term story for vanadium may be the battery sector, China's introduction of new rebar standards next month is creating tightness in the market right now.
In a research note BMO Capital Markets, an investment bank, says it anticipates that that Chinese ferrovanadium exports will dwindle over the coming year as domestic demand for the rebar industry continues to rise:
Undoubtedly, current pricing will generate a response from marginal supply and through some substitution with niobium, and is thus a spike price, but we anticipate pricing trading at strong levels compared to recent history over the coming years.
Going with the flow
Vanadium flow batteries have lifespans of over 20 years without capacity loss and are non-flammable. Another advantage over lithium ion is that this type of battery can be charged and discharged simultaneously making it highly suitable for large-scale storage from renewable sources such as solar and wind when connected to an electricity grid.
The amount of V2O5 in a single MWh is just under 10 tonnes. South Africa, China and Russia produce more than 80% of the world’s vanadium, mostly as a byproduct of magnetite mining.
Only around 80,000 tonnes of vanadium was produced last year. Glencore, South Africa’s Bushveld Minerals and Canada’s Largo Resources are major listed producers.
Denver-based uranium producer Energy Fuels recently announced plans to restart its vanadium processing facility (from pond solutions) and is commencing limited conventional vanadium production at its Utah mines. The company's White Mesa Mill is expected to go into production in November and Energy Fuels estimates the ponds contain roughly 4 million pounds of recoverable V2O5.”
Resignation of Director
CellCube also announces the resignation of Mr. Brian Murray from the Board of Directors. The Board wishes to extend their sincere appreciation for Mr. Murray’s efforts and support for the company.
About CellCube Energy Storage Systems Inc.
CellCube is a Canadian public company listed on the Canadian Securities Exchange (symbol CUBE), the OTCBB (symbol CECBF), and the Frankfurt Exchange (Symbol 01X) focused on the fast-growing energy storage industry which is driven by the large increase in demand for renewable energy.
CellCube supplies vertically integrated energy storage systems to the power industry and recently acquired the assets of Gildemeister Energy Storage GmbH, now Enerox GmbH the developer and manufacturer of CellCube energy storage systems. CellCube recently acquired EnerCube Switchgear Systems (formerly Jet Power and Controls Ltd.) and Power Haz Energy Mobile Solutions Inc. (formerly HillCroft Consulting Ltd.) and has also invested in an online renewable energy financing platform, Braggawatt Energy Inc.
CellCube develops, manufactures, and markets energy storage systems on the basis of vanadium redox flow technology and has over 130 project installations and a 10 year operational track record. Its highly integrated energy storage System solutions features 99% residual energy capacity after 11,000 cycles with the focus on larger scale containerized modules. Basic building blocks consist of a 250kW unit family with 4, 6 and 8 hours variation in energy capacity.
On Behalf of CellCube Energy Storage Systems Inc.,
Mike Neylan, CEO, Director
Glenda Kelly, Investor Communications
This news release contains certain "forward-looking statements" within the meaning of Canadian securities legislation. Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments that the Company expects to occur; they are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions, or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Certain material assumptions regarding such forward-looking statements are discussed in this news release and the Company's annual and quarterly management's discussion and analysis filed at www.sedar.com. Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.