The following amendment has been made to the £25m Investment and New Strategic Partner announcement released at 07:00 on 9 September 2025 under RNS No. 5688Y.

The reference to the number of shares held by each of the Subscribers has been corrected to refer to 64,102,564 shares.

No further changes have been made, and the full amended text is below.

The information contained within this Announcement is deemed by Invinity Energy Systems plc to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

09 September 2025

Invinity Energy Systems plc

("Invinity" or the "Company")

£25m Investment and New Strategic Partner

Partnership targets expansion of manufacturing capabilities, broadening of supply chain and increased commercial focus on the Indian market

Invinity Energy Systems plc (AIM: IES) (OTCQX: IESVF), a leading global manufacturer of utility-grade energy storage, is pleased to announce a strategic investment and the establishment of a key relationship with Atri Energy Transition.

The Company has entered into conditional subscription agreements to receive an investment of a total of £25 million (before expenses) from two new investors being Atri Energy Transition Private Limited ("Atri") and Next Gen Mobility Limited ("Next Gen") (together the "Subscribers"). Pursuant to the subscription agreements, a total of 128,205,128 new Ordinary Shares will be issued at a price of 19.5 pence per share (the "Issue Price"), being a 5% discount to the 10-day Volume Weighted Average Share Price ("VWAP") of the Company to the day before this announcement (the "Strategic Investment").

The net proceeds of the Strategic Investment will be used to strengthen Invinity's global manufacturing capabilities as well as further diversify the Company's supply chain, support and enhance the ongoing product development and cost reduction programme, and bolster Invinity's working capital position as the Company looks to expand its operations.

The Subscribers

Atri is working to drive sustainable change through three focused verticals: biofuels, long-duration energy storage, and urban mobility. The company was founded by Mr. S Kishore, an entrepreneur with over 30 years' experience across energy, infrastructure and capital markets, including with the previously AIM-quoted KSK Power Ventur plc ("KSK"). Headquartered in Hyderabad, India, the Atri group of companies brings together deep expertise in project implementation, power generation, energy markets, manufacturing and supply chain development both within India and internationally.

The relationship allows Invinity to pursue significant commercial opportunities within the Indian market, to access lower cost materials and sub-components, and to explore the establishment of stack manufacturing and final assembly in the region.

Next Gen is a Guernsey-incorporated holding company which has been established to invest in and acquire intellectual property and operate businesses involved in, among other things, the development of new energy technologies. Next Gen is majority owned by Jonathan Keeling, alongside Artha Global Opportunities Fund*. Jonathan Keeling was previously CEO of Arden Partners Limited, a corporate broking firm that had a number of corporate clients in the energy sector, including KSK.

The principals of both investors have experience of the energy sector over a number of years, have a strategy of investing in new energy technologies and have both expressed strong confidence in the prospects for Invinity.

*Artha Global Opportunities Fund is an Indian investment fund managed by Artha Bharat Investment Managers IFSC LLP, and an existing shareholder in Invinity directly with a last reported holding of 5.09%.

The Subscription

The Company and the Subscribers have each entered into an agreement under which each Subscriber has conditionally agreed to acquire £12.5 million of new Ordinary Shares in the Company at the Issue Price (the "Subscription Agreements"). The Subscription Agreements are conditional, inter alia, on the passing of the necessary shareholder approvals to issue the new Ordinary Shares, Admission and certain conditions particular to each Subscriber, including but not limited to, in relation to Atri, having obtained all necessary regulatory approvals in India for outbound foreign investment.

The Subscription Agreements for each of Atri and Next Gen are not conditional on each other. Therefore, in the event that Atri does not receive the necessary regulatory approvals in India and all the conditions set out in the Subscription Agreement relating to Next Gen are satisfied, the investment by Next Gen will proceed to completion. There is no assurance that the investments by Next Gen and Atri will complete at the same time and one may complete while the other may lapse if the conditions are not satisfied within the agreed time period.

Subject to the conditions in the Subscription Agreements being satisfied (or, if applicable, waived), and in particular subject to the passing of the resolutions at the General Meeting, it is expected that the 128,205,128 new Ordinary Shares to be issued (the "Subscription Shares") will be admitted to trading, and dealings in the Subscription Shares will commence, on AIM on or around 8.00 a.m. on 30 September 2025 ("Admission").

Admission is conditional upon, inter alia, the passing by the Company's shareholders of the necessary resolutions granting to the Board authority to allot the Subscription Shares and approving the dis-application of statutory pre-emption rights for such allotments and grants together with receipt of the subscription proceeds by the Company.

Relationship Agreements

Atri and Next Gen are expected to each hold 64,102,564 Ordinary Shares on Admission and accordingly have separately entered into a relationship agreement with the Company (the "Relationship Agreements").

Pursuant to the Relationship Agreements, both Atri and Next Gen have undertaken (among other things) to the Company that, for so long as they are interested in Ordinary Shares carrying 10 per cent. or more of the Company's voting share capital (either alone or together with their own connected persons), they will not act to unduly influence the Company or its Board or otherwise interfere with the day-to-day management of the Company.

Under the Atri Relationship Agreement, Atri has been granted a right to appoint a director to the Board of the Company (the "Nominated Director"), for so long as they have a shareholding greater than 10 percent. The Atri Relationship Agreement also contains undertakings for i) the Company to establish a technology committee which the Nominated Director will be capable of joining and ii) appoint, in consultation with Atri, candidates to two senior management positions relating to the Indian operations of Invinity, or otherwise as agreed, to focus on business development and procurement strategies to streamline sourcing of the critical components. Under the Next Gen Relationship Agreement, Next Gen has been granted a right to appoint an observer to the Company's board for so long as they have a shareholding greater than 10 percent and the Next Gen Relationship Agreement also contains an undertaking to establish a technology committee.

Further details of the Relationship Agreements will be set out in the circular to be sent to Shareholders.

Posting of Shareholder Circular and Notice of General Meeting

A circular, containing further details of the Strategic Investment and giving notice of a General Meeting to approve the allotment of the Subscription shares will be published and despatched to Shareholders in the coming days (the "Circular"). Following its publication, the Circular will be available on Invinity's website at https://invinity.com/investors. 

Background to and reasons for Strategic Investment

Invinity has successfully developed and commercialised its Vanadium Flow Battery ("VFB") technology into a product platform suitable for a broad range of customers across the stationary energy storage market. To date, the Company has manufactured more than 1,500 individual battery modules globally and has secured a position as one of the world's foremost vanadium flow battery companies. As of September 2025, Invinity batteries had discharged more than 6 million kilowatt-hours (>6 GWh) of electricity for our customers.

As indicated in the Company's Trading Update in March 2025, the size and scale of the opportunities which the Company is actively discussing and negotiating are significantly greater in terms of both number and project capacity than it has ever seen before. Across Invinity's core markets, the global energy crisis continues to drive governments and policy makers to accelerate investment in energy storage to help address rising energy prices for consumers while attempting to bolster national energy security. This shift has led to a significant uptick in demand across the entire energy storage sector with the vanadium flow battery market subsector considered to be one of the fastest growing with a forecast compound annual growth rate of approximately 18% out to 2030.

Driven by the rise of Artificial Intelligence ("AI"), growing demands on datacentres and large-scale industrial and domestic electrification, global electricity demand is growing at a rapid and accelerating rate, forecast at ~4% annually to 2027 and beyond.

Looking regionally, 60% of the world's increase in electricity consumption over 2025 and 2026 is expected to be driven by two countries, China and India, with average electricity growth also expected to more than double in the USA over the same period. In the UK, energy bills are 42% higher today than in 2022, making cheaper power a political and social imperative and stimulating a new wave of support schemes that will see a significant build out of energy storage across the country.

In order to capture the significant market opportunity presented, the Company must expand into new regions and "globalise" its operations in order to reduce costs, manage supply chain risk and scale manufacturing in order to deliver the gigawatt-hours of demand the Company expects to receive in the years to come.

Strategic partnerships have been an essential part of Invinity's corporate development to date and the Company is delighted to have agreed terms with Atri and Next Gen on an investment which will further accelerate Invinity's expansion into the APAC region and provide significant support to the Company's programmes to scale manufacturing capacity whilst reducing cost. Having a strong and active partner in India in the form of Atri also provides significant benefits in respect to Invinity's supply chain, assisting in reducing risk of single-sourced components and introducing beneficial competition on both price and quality into the Company's supplier ecosystem.

Current Trading & Prospects

In the past 12 months, the Company has executed against the corporate plan set out by CEO Jonathan Marren when he took over in September 2024. This has included launching the next-generation product Endurium™ (and more recently, the extension of our product line with Endurium Enterprise™), continuing to close deals from our commercial pipeline and positioning Invinity competitively within core market LDES solicitations such as the UK's Cap and Floor programme. In respect of the key corporate goal of reducing product costs, Invinity has reduced the cost of Endurium by approximately 24% since launch, with a defined pathway to further significant cost reductions now being executed against. The Company has also completed a number of important initiatives designed to reduce corporate complexity and drive operational efficiencies in the past year.

The Company also announced yesterday the signing of a MoU, which if ultimately concluded with a definitive contract, will significantly expand its operations within China both commercially and operationally.

Financial Performance

Invinity recognises revenue in accordance with its stated policies as set out in its last annual report and accounts and in relation to the sale of VFBs, this requires, inter alia, title for the goods to have passed to its customers in general once shipment of the project has taken place. Grant income is recognised once the necessary milestones under a grant funding agreement have been met and the relevant invoice issued.

As previously announced on 1 August 2025, the LODES project is now proceeding which allows for up to £10m of grant income to be claimed. A significant majority of this sum is expected to be recognised in 2025, primarily across the second half of the year.

The Company also expects to recognise revenue from the sale of both VS3 and Endurium batteries during the year, again primarily across the second half of the year in accordance with its accounting policies and the lead time to manufacture and ship batteries following the launch of Endurium at the end of 2024 and the first trial shipment to Gamesa Electric in H1 2025. The amount of such revenue to be recognised will depend on concluding certain near-term commercial opportunities and the successful shipment of those together with the completion of shipment of existing signed orders.

In addition, the Company also anticipates recording various licence fee income including from the recent agreement with UESNT, which is subject to UESNT issuing Invinity with a formal notice to proceed ("NTP").

Invinity is trading in line with current market forecasts and expects to release its interim results by the end of September. As stated above, results for the year are anticipated to be significantly second half weighted and accordingly the Company expects to announce H1 2025 financial results showing revenue of approximately £0.3m, grant income of approximately £1.8m (together £2.0m), a net loss of £10.2m and cash of £18.7m.

Maximum potential revenue and grant income for the year to 31 December 2025 is expected to be £26m. At today's date, the Company had an order book of £18m signed contracts, in addition to the £2.0m of booked revenue and grant income recognised in H1. This outlook for full year 2025 comprises the following:

·    Approximately £15m signed committed or booked. These are projects where Invinity has high confidence, however risks remain relating to supply chain execution impacting delivery by year-end.

·    Approximately £5m signed uncommitted. These are projects where the key risks include delay to customer NTP, typically impacted by construction permits, site readiness and the timing of financial close.

·    Approximately £6m near-term contracts. These are two contracts and represent projects where the customer has indicated intent to proceed, key risks include the above and execution of final documentation.

The Company also notes that in the event that the royalty is recognised from UESNT, this would likely have a significantly positive impact on net income.

Jonathan Marren, Chief Executive Officer at Invinity said:

"The accelerating growth of electricity demand has set out India as a significant LDES opportunity. Securing valuable partners such as Atri remains a key part of our strategy to further Invinity's interests globally.

"This investment will further reinforce the achievements we have secured to date that enhance our supply chain, manufacturing capabilities and realise greater cost down of our Endurium VFBs. I am delighted with the support of the whole of the Atri and Next Gen teams throughout this process and very much look forward to them deploying our vanadium flow batteries in one of the fastest growing global energy storage markets."

S Kishore, Founder of Atri said:

"Atri Energy Transition focuses on providing 'Socially Relevant & Economically Viable' Energy Transition solutions to users at large, driven by access to cutting-edge technologies. While Invinity has carved a place for itself in the LDES marketplace, emerging as a reliable, sustainable and commercially viable alternative for long duration energy storage needs, we believe the strategic alignment of interests of Atri and Invinity will be an important step in the direction towards achieving deep decarbonisation of energy sources for the world."

Stay up to date with news from Invinity. Join the distribution list for the Company's monthly investor newsletter here.

Enquiries:

Notes to Editors

Invinity Energy Systems plc (AIM: IES) (OTCQX: IESVF) manufactures vanadium flow batteries for large-scale, high-throughput energy storage requirements of business, industry and electrical networks.

Invinity's factory-built flow batteries run continually with no degradation for over 30 years, making them suitable for the most demanding applications in renewable energy production. Energy storage systems based on Invinity's batteries are safe, reliable, and economical, and range in size from less than 250 kilowatt-hours to tens of megawatt-hours.

Invinity was created in April 2020 through the merger of two flow battery industry leaders: redT energy plc and Avalon Battery Corporation. With more than 190 MWh of systems deployed, contracted for delivery or awarded for projects across more than 90 sites in 17 countries, Invinity is active in all major global energy storage markets and has operations in the UK, Canada, USA and China. Invinity Energy Systems plc is quoted in the UK on AIM and trades in the USA on OTCQX.

To find out more, visit invinity.com, sign up to our monthly Investor Newsletter here or contact Investor Relations on via +44 (0)20 4551 0361 or ir@invinity.com.