Reliance New Energy Limited inked formal agreements to purchase Lithium Werks BV’s assets, including finance for future expansion, for US $61 million. According to a statement from the firm, the assets include Lithium Werks’ full patent portfolio, production facilities in China, major commercial relationships, and the employment of existing workers as a continuing concern. The addition of Lithium Werks to Reliance’s recently announced acquisition of Faradion Limited, a global leader in sodium-ion cell chemistry, strengthens Reliance’s technology portfolio by giving it access to one of the world’s most comprehensive portfolios of LFP patents, as well as a management team with extensive experience in cell chemistry, custom modules, packing, and the construction of large-scale battery manufacturing facilities.
Reliance will use the combined experience of these senior management teams, as well as the technology and know-how acquired through the acquisitions of Faradion Limited and Lithium Werks, to build an end-to-end battery ecosystem that will enable Reliance to deliver not only large-scale manufacturing of key supply chain materials like cathode, anode, and electrolyte, but also a cell manufacturing facility with leading IOT/AI capabilities, giving Reliance the f
Mukesh Ambani, Chairman of Reliance Industries Limited, said, “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 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 LFP value chain,” he said.
”We are looking forward to working with the Lithium Werks team and are excited about the pace at which we are progressing towards establishing an end-to-end battery manufacturing and supply ecosystem for India markets,” he added. “Along with Faradion, Lithium Werks will enable us to accelerate our vision of establishing India at the core of developments in global battery chemistries and help us provide a secure, safe and high-performance supply chain to the large and growing Indian EV and Energy Storage markets,” he added.
Joe Fisher, Co-Founder and CEO of Lithium Werks, said “We are pleased to become a part of the Reliance New Energy initiative. 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.”
The acquisition is scheduled to close in June 2022, subject to certain regulatory and other usual closing conditions. On this deal, Reliance’s legal adviser was Covington & Burling LLP, while its accounting and tax advisor was Deloitte.
