Abingdon based Nexeon scales up battery production after Sth Korean investment
Abingdon-based Nexeon, which develops and produces materials for better batteries, has secured $80 million investment from a consortium including South Korean companies SKC Co. Ltd, SJL Partners LLC, BNW Investment Co. Ltd, and Kiwoom Private Equity Inc. Ltd. Through this transaction, Nexeon enters into a strategic partnership with SKC, a major global battery and semiconductor materials company, for volume manufacturing of its silicon anode materials.
Nexeon says its technology makes a big difference to the real world performance of battery operated equipment, improving productivity and quality of life. It says using silicon in place of carbon in rechargeable Li-ion batteries enables a dramatic improvement in performance. Higher cell energy density enables cost reduction while maintaining or enhancing electric vehicle range
The fundraising and formation of a manufacturing partnership are part of Nexeon’s manufacturing strategy to accelerate the supply of its groundbreaking silicon anode materials at volume in order to meet the rapidly increasing demands from its blue-chip customers in automotive and consumer electronics industries across Europe, North America, and Asia.
Silicon is seen as the next major enabler for Li-ion batteries.
SKC, a US$5.0bn market cap company, is one of Korea’s leading advanced materials companies, with a strategic focus on rechargeable battery, semiconductor and eco-friendly materials, and a global presence in Europe, North America, and Asia. SJL is a private equity firm that seeks cross-border investments in partnership with Asia-based strategic investors.
Dr Scott Brown, CEO of Nexeon, said: “We are very excited that our new partners have recognized the value of our silicon anode materials, and this move will accelerate production ramp up and facilitate access to markets across the globe.
“This significant investment clearly validates the tremendous technical and commercial progress we have made, and we look forward to working with our new partners to deliver our materials in volume to consumer electronics and EV customers alike.”
Dr Junghwan Shin, Vice President New Business Development, added: “We are extremely pleased to have been able to close this deal with Nexeon. SKC is committed to implementing our ESG (Environmental, Social and Governance) policy, and we see silicon anode materials, and this strategic relationship with Nexeon, as a key step in delivering on our commitment.”
“Batteries are the key technology of our time and present a once-in-a-lifetime opportunity to transform transportation and positively impact the environment. Nexeon’s silicon materials are a key enabler in the delivery of better batteries and we are extremely excited about this investment” added Steve Lim, Chairman and Managing Partner of SJL.
HSBC acted as advisor for Nexeon’s funding and partnership agreement.
