Reliance Acquires Assets Of Battery Maker Lithium Werks For $61 Million

Lithium Werks is a provider of cobalt-free and high-performance 'Lithium Iron Phosphate' (LFP) batteries that are mainly used in electric vehicles. 

Reliance Industries | File Image

New Delhi:  In a push to clean energy, Reliance Industries' subsidiary Reliance New Energy Ltd on Monday signed definitive agreements to acquire "substantially" all of the assets of Lithium Werks BV for a total transaction value of $61 million, including funding for future growth.

Lithium Werks is a provider of cobalt-free and high-performance 'Lithium Iron Phosphate' (LFP) batteries that are mainly used in electric vehicles. 

The assets include the company's portfolio of about 219 patents,  its manufacturing facility in China, key business contracts and hiring of existing employees as a going concern.

"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," said Mukesh Ambani, chairman of Reliance Industries, according to the company release.

"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."

Ambani added, "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.

In December, Reliance had announced the acquisition of Faradion Limited, a global leader in sodium-ion cell chemistry for an enterprise value of 100 million pounds ($130 million). The two companies will offer Reliance access to technology that will be key in its plan to manufacture batteries and battery systems in India.

"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," Ambai added in the release.

Founded in 2017, through the acquisition of certain assets of 'Valence' and 'A123' industrial division, the management of Lithium Werks has over 30 years of battery expertise and nearly 200 MWh annual production capacity including coating, cell and custom module manufacturing capability.

Lithium Werks is uniquely positioned to take advantage of the global opportunities on the back of a resurgence in demand for LFP batteries.