The acquisition will include Lithium Werks’ entire patent portfolio, manufacturing facility in China, key business contracts and hiring of existing employees as a going concern
Mukesh Ambani-led Reliance Reliance Industries Ltd (RIL) is on its way to acquire the assets of cobalt-free lithium battery technology and manufacturing company Lithium Werks for $61 million.
The conglomerate will complete the acquisition through its subsidiary Reliance New Energy Ltd (RNEL), which will provide it access to Lithium Werk’s battery manufacturing and technology.
The acquisition will include Lithium Werks’ entire patent portfolio, manufacturing facility in China, key business contracts and hiring of existing employees as a going concern. The company has an intellectual property (IP) portfolio of around 219 patents related to LFP process and technology, IP driven product development pipeline, and an integrated cell manufacturing capability.
The transaction is subject to certain regulatory and other customary closing conditions and is expected to complete by June 2022.
Joe Fisher, co-founder and chief executive officer of Lithium Werks, said, “This deal means increased resources and expanded global reach, while leveraging our experienced team and IP portfolio and providing scale and momentum to help drive our product innovation, capacity expansion and accelerate our clean energy strategy.”
RNEL said that Lithium Werks is well positioned to leverage on the opportunity arising from the recent resurgence in demand for LFP batteries given its portfolio of integrated solutions.
“LFP is fast gaining as one of the leading cell chemistries due to its cobalt and nickel free batteries, low cost and longer life compared to NMC (nickel, manganese and cobalt) and other chemistries. Lithium Werks is one of the leading LFP cell manufacturing companies globally and has a vast patent portfolio and a management team which brings tremendous experience of innovation across LFP value chain,” Ambani, RIL’s chairman, said.
The transaction is a part of RIL’s strategic plan to invest Rs 75,000 crore over the next three years to build a new clean energy business to fuel its commitment to be net carbon neutral by 2035.
