H2's existing K1 plant has an annual production capacity of 330 MWh. With the completion and commissioning of the K2 plant, the company’s total annual output will increase to 1.2 GWh—nearly four times its original scale. The new facility is located just about 100 meters from the K1 plant and covers an area of 8,498 square meters. Its production line is designed to integrate the entire process from stack manufacturing to full battery system assembly, enabling seamless, continuous production. Currently, the main steel structure construction of the building has been completed, with epoxy flooring and large lifting beams fully installed, and the project has entered the phase of installing production equipment.

In addition to manufacturing lines, H2 plans to install a 1 MWh vanadium redox flow battery system within the K2 site. This system will operate continuously around the clock as a non-central dispatch power generation unit. The massive real-time data collected during operation will be used to train artificial intelligence models, continuously optimizing the flow battery operation and control system to further enhance product performance and operational efficiency. To support this expansion project, H2 has secured approximately $77 million in financing, including $16 million in bridge funding received in early 2025.

While advancing domestic production capacity, H2 has also achieved substantial progress in overseas energy storage projects. In Spain, a 1 MW/8 MWh vanadium redox flow battery system, contracted and managed by local firm CYMI, successfully completed full-load testing in March 2026. The core technology for this system was provided by H2, while the vanadium electrolyte was supplied by LESYSTEM under RS Group. The project contract value reached €6.4 million. This energy storage system offers over 15 hours of storage duration and operates as part of a hybrid energy storage solution alongside on-site sodium-sulfur batteries, lithium batteries, and photovoltaic systems, supporting local research and energy initiatives.

Meanwhile, H2’s demonstration project in South Korea continues to advance steadily. The Ulsan 20 MWh vanadium redox flow battery demonstration project, jointly developed by H2 and Korea East-West Power (EWP), represents the largest-scale project of its kind in South Korea and has now entered grid connection testing, with commercial operation scheduled for October 2026. In April 2026, both parties signed a memorandum of understanding to deepen cooperation across multiple areas, including localized product development and international market expansion. In Busan Industrial Park, H2 partnered with Korea Southern Power (KOSPO) to launch a 250 kW/1 MWh commercial and industrial energy storage project, which began operations in November 2025. To date, H2 has deployed approximately 20 vanadium redox flow battery projects across seven countries worldwide.

H2’s flagship product is the modular EnerFLOW series of vanadium redox flow batteries. The flagship model, EnerFLOW640, incorporates several proprietary patented technologies, offering a smaller footprint compared to other products at the same power rating. Vanadium redox flow batteries are inherently non-combustible, have a service life exceeding 20 years, and support discharge durations of eight hours or more, making them ideal for long-duration energy storage applications. Supported by the Korean DeepTech Challenge Project, H2 is also developing vanadium redox flow battery solutions tailored for high-temperature regions such as the Middle East and the southwestern United States, expanding the technology’s applicability.

On the market collaboration front, H2 has established long-term strategic partnerships with major South Korean utilities, including Korea East-West Power and Korea Southern Power. Globally, the long-duration energy storage sector is benefiting from favorable policy developments. Multiple countries are introducing supportive mechanisms: Japan ensures revenue stability for long-duration projects through decarbonization power auctions; the UK incentivizes investment via its Cap & Floor mechanism; and South Korea is reviewing policies to separate bidding processes for lithium-based and non-lithium energy storage technologies. These policy shifts are opening broader market opportunities for non-lithium storage technologies like vanadium redox flow batteries. Leveraging this expanded production capacity, H2 aims to strengthen its global competitiveness in the long-duration energy storage market.