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Lithium Werks assets will be purchased by Reliance for $61 million

Lithium Werks assets

Lithium Werks assets to be purchased by RIL

Lithium Werks assets – NEW DELHI: Mukesh Ambani’s Reliance Industries announced on Monday that it had purchased the assets of Lithium Werks, a cobalt-free lithium battery technology business, for $61 million, as it works to develop the technology and materials needed to set up an end-to-end battery production facility. 
“Today, Reliance New Energy, a wholly owned subsidiary of Reliance Industries Ltd, inked definitive agreements to buy essentially all of Lithium Werks BV’s assets for a total transaction value of $61 million, including finance for future growth,” the firm stated in a statement. 
The assets include Lithium Werks‘ complete patent portfolio, a production site in China, major business contracts, and the continued employment of existing staff.

Lithium Werks, founded in 2017, is a cobalt-free lithium battery technology and production firm with operations in the United States, Europe, and China, as well as customers all over the world. 
Following that, the corporation formed a succession of joint ventures and acquisitions in industries such as hydrogen and solar cells. 
Faradion, a UK start-up creating sodium-ion batteries, was purchased for $135 million in January. 
Lithium Werks is a prominent manufacturer of high-performance lithium iron phosphate (LFP) batteries that are devoid of cobalt.

Purchase Lithium Werks assets by RIL

Lithium Werks, with its complete portfolio of LFP solutions, is well positioned to take advantage of the global prospects presented by the current recovery in demand for LFP batteries, according to the statement. 
“The combination of Lithium Werks and Reliance’s recently announced acquisition of Faradion Limited, a global leader in sodium-ion cell chemistry, strengthens Reliance’s technology portfolio and gives it access to one of the world’s leading portfolios of LFP patents as well as a management team,” the company said. 
The business intends to use its senior management teams’ experience, as well as the technology and know-how acquired through the acquisitions of Faradion and Lithium Werks. 
Reliance will be able to build an end-to-end battery ecosystem, including large-scale manufacturing of key supply chain materials like cathode, anode, and electrolyte, allowing it to produce batteries and battery module systems with various chemistries for various applications in energy storage and mobility.

Words of Chairman of Reliance Industries 

“Due to its cobalt and nickel-free batteries, low cost, and longer life than NMC and other chemistries, LFP is quickly becoming one of the most popular cell chemistries. Lithium Werks is a global leader in the manufacture of lithium-ion batteries, with a large patent portfolio and a management team with extensive experience in the LFP value chain.” 
“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,” said Joe Fisher, co-founder and CEO of Lithium Werks.

The acquisition is expected to close in June 2022, subject to certain regulatory and other usual closing conditions. 

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