In conjunction with the strategic partnership with Sun Metals, a wholly-owned subsidiary of Korea Zinc, Energy Vault obtained a $50 million investment as part of its ongoing process to become a publicly-traded company through a merger with Novus Capital Corporation II. With $150 million commitments in its PIPE, approximately 90% of the minimum cash condition has been satisfied.
Energy Vault, the provider of sustainable, grid-scale energy storage solutions, entered a strategic partnership for renewable energy storage with Korea Zinc Co., Ltd., a global leader in non-ferrous metal smelting production including leading positions in Zinc, Lead, Silver and rare metal Indium. The partnership supports Korea Zinc’s strategy to decarbonize its refining and smelting operations focused initially under its wholly-owned subsidiary Sun Metals Corporation Pty. Ltd., an Australia-based zinc refinery.
Sun Metals aims to deploy Energy Vault’s storage and energy management software technology to support renewable power supply and optimization to support their refining infrastructure. The scope of the partnership also includes the potential sustainable and beneficial re-use of tailings and other refining waste materials within Energy Vault’s eco-friendly composite blocks. The companies expect to begin project deployment in mid-2022. Sun Metals is targeting to become one of the first zinc refineries to produce “Green” Zinc in support of their broader strategy to shift to 100% renewable power by 2040 with an interim target of 80% renewable by 2030.
New investment upsizes Novus Capital Corporation II PIPE to $150 Million
In September 2021, Energy Vault announced that is going public on the New York Stock Exchange through a merger with Novus Capital Corporation II, a U.S. publicly traded special purpose acquisition company (SPAC). The company obtained a $100 million private placement (“PIPE”) investment.
In line with its strategic partnership, Korea Zinc has executed a subscription agreement committing a $50 million investment to Novus’s PIPE, bringing the total PIPE transaction to $150 million. These proceeds, combined with up to $288 million in Novus’s cash trust account, will be used to fund Energy Vault’s operations and support new and existing growth initiatives. Additionally, as a result of this increased PIPE investment, approximately 90% of the minimum cash condition has been satisfied.
“This investment from one of the world’s largest metal producers and our partnership agreement with Sun Metals will further accelerate the global scale-up of our innovative energy storage infrastructure and software platform within one of the most important global markets of Australia. Importantly, with the majority of the minimum cash condition satisfied, it also significantly enhances deal certainty, thus allowing the Energy Vault team to remain hyper-focused on deployment execution across the globe,” says Robert Piconi, CEO and Co-Founder, Energy Vault.
(Press release/RAN)
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