Reliance New Energy acquires Lithium Werks’ assets for $ 61 million

Reliance New Energy Ltd (RNEL) an arm of Reliance Industries Limited is set to acquire the assets of cobalt-free lithium battery technology and manufacturing company Lithium Werks for a total transaction value of $61 million, Mukesh Ambani-led conglomerate said in a media release.

The acquisition will provide RNEL access to Lithium Werk’s cobalt-free and high-performance lithium iron phosphate (LFP) batteries manufacturing and technology. 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 the tremendous experience of innovation across the LFP value chain,” quoted Ambani, RIL’s chairman in the statement.

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.

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.

Prior to this deal, RNEL acquired Faradion, a UK start-up developing sodium-ion batteries for GBP 100 million, with plans to invest another GBP 25 million into the company for the commercial rollout of products, including batteries for electric vehicles. With this acquisition of Lithium Werks, RIL will beef up its technology portfolio for battery cells that can enable it to build large-scale battery manufacturing facilities.

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