The company behind plans to build a gigafactory in Northumberland has acquired a German electric battery innovator in a €36m deal.
Britishvolt has signed a deal with leading battery solutions business Monbat Group to purchase its subsidiary EAS. The agreement values EAS - an advanced technology battery cell innovator and manufacturer based in Nordhausen, Germany - at €36m (£30.8m) and is subject to completion and any regulatory approvals.
The deal for EAS – which has more than 25 years’ experience in developing and producing large format cylindrical lithium-ion battery cells – marks the second acquisition Britishvolt has made in its quest to bring forward the gigaplant plans.
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It is currently on site at the former Blyth Power Station coal yards, building the plant which it is hoped will create 3,000 direct jobs and another 5,000 through its supply chain once it opens in 2024.
The company – which secured “tens of millions” in funding from the Government – has so far signed memorandums of understanding with Lotus Cars and Aston Martin to develop electric vehicles powered by Britishvolt cells, and last week it secured undisclosed investment from Monaco-based Scorpio, to explore battery power solutions for the maritime industry.
The addition of EAS makes a strong fit for Britishvolt, as its battery solutions have been adopted for aerospace and defense, submarine and marine, as well as automotive applications in Europe, Asia and the US. Prominent business partners such as NASA are already powered by the company’s cells.
Orral Nadjari, founder and CEO at Britishvolt said: “Our 46xx cell format, developed as part of our wider R&D program, gives Britishvolt a significant competitive advantage in the battery race.
“The acquisition of EAS will allow us to scale up the final part of the 46xx cell development and commercialization programme and put this leading cell product in the hands of our automotive customers. Exactly the cell solution they have been seeking in terms of next-generation, high-performance and long range battery technology.
“This acquisition – the second in our short history, and first overseas – underscores the drive and determination of Britishvolt to offer best-in-class battery solutions to our customers. Following on from our recent announcement of a development roadmap to marine battery solutions, EAS will also facilitate getting battery systems to this particular market segment quicker and help the pathway to decarbonisation.
“EAS has a proven track record in providing innovative, tailor-made battery cell solutions for its customers, and it makes strategic sense so that we join forces and grow together. We intend to make additional investments in EAS to help to ensure that it can reach its full potential within the Britishvolt family.”
Michael Deutmeyer, managing director of EAS, said: “Britishvolt and EAS are united by common goals. We share a vision, and due to the high synergies, both companies are accelerating their mutual growth. For EAS and its customers, the focus is on greater capacities in the development and production of innovative cells and battery systems. We are expanding our know-how, deepening our ecological and resource-saving approach in production and enlarging our team. At the same time, we are supporting Britishvolt as a leader in battery cell technology in its focus on international growth.
“Today we see, also monetarily, the great success of a consistent product development strategy. I would like to thank Monbat for the trust and support in every form on our journey together over the past five years.
“But above all, I want to thank my colleagues and employees who define our company. It is the employees of the entire EAS team for whom I am particularly happy today. We are starting a new EAS era together, at our tried and tested location in Nordhausen, which has stood for pioneering ideas and products from the Innovation Factory for a quarter of a century.”
Victor Spiriev, CEO of Monbat AD, added: “The deal structure fully supports the roadmap for the development of EAS and the Monbat Group. Monbat will continue to be part of the expected growth of the lithium-ion industry through the minority stake that the group will hold in Britishvolt. We believe Britishvolt is the right partner that has the necessary resources to become a leader in providing lithium-ion solutions for electrified transportation and energy storage. The synergies between EAS and Britishvolt will further contribute to add value to the new owner, their shareholders and partners.”
