Invinity earmarks about £10 million for product development under new funding plan
Key Facts
Invinity Energy Systems has earmarked about £10 million for product development and cost reduction under a plan to use the proceeds of funding announced in October 2026, according to Investing.com. The plan includes allocating about £8 million to working capital alongside spending on product development. It also targets investment of about £2 million in manufacturing capacity, with the planned allocation of proceeds covering both operating and production needs. The plan follows a loss for the period of £12.1 million in the first half of 2026, according to the company's half-year results presentation. Net cash stood at £10.5 million at the end of that half, according to the same presentation.
The half-year results showed combined revenue and project grant income rose to £1.7 million in the first half of 2026 from £0.9 million in the corresponding period of 2025. Meanwhile, net cash outflows from operations increased by 5% over the same period, according to a results presentation published by Investing.com. Cash outflows from operations totalled £12.9 million, compared with £12.3 million in the first half of the previous year. The presentation attributed the increase to higher staff costs, restructuring charges and investment in working capital. Growth in revenue and project grant income thus coincided with an increase in cash used in operations, while the new funding plan included working capital among the uses of proceeds.
Government backing for Invinity's financing dates back to a May 2024 deal, when the UK Infrastructure Bank aimed to provide a cornerstone investment in a public offering by the company. A deal document published by the National Wealth Fund said the bank "will provide a cornerstone investment of £25 million in a public offering to raise £56 million, crowding in other investors". The government investment at the time aimed to expand manufacturing in Scotland, according to the document. The expansion plan included scaling up the company's existing operations in Bathgate and expanding to an additional site in Motherwell. Expanding the manufacturing base was therefore among the objectives of the earlier investment, while the plan for using the proceeds of funding announced in October 2026 also includes an allocation for manufacturing capacity.
On its projects, Invinity announced in early October 2026 that its customer Indian Energy's vanadium battery system at the Viejas project in California had delivered more than 1 gigawatt hour of energy. The company said the energy was delivered by its vanadium flow battery system at the customer's site. Invinity had also previously secured a contract to supply an Endurium battery to the Pacific Northwest National Laboratory in the United States, according to a report published by Investing.com. The announcement, issued in December 2025, set an expected delivery date for the battery system to the laboratory. That date was in the second half of 2026.