RIL subsidiary to acquire assets of Lithium Werks for $61 million

Reliance Industries Ltd (RIL) on Monday said that its wholly owned subsidiary Reliance New Energy Ltd (RNEL) has signed a definitive agreement to acquire substantially all of the assets of Lithium Werks BV for a total transaction value of $61 million, including funding for future growth.

"The assets include the entire patent portfolio of Lithium Werks, manufacturing facility in China, key business contracts and hiring of existing employees as a going concern," RIL said in a release.

The transaction is subject to certain regulatory and other customary closing conditions and is expected to complete by June 2022.

Founded in 2017, Lithium Werks is a leading provider of cobalt free and high-performance Lithium Iron Phosphate (LFP) batteries. Lithium Werks was founded through acquisition of certain assets of Valence and A123 industrial division. The company's management brings over 30 years of battery expertise and nearly 200 MWh annual production capacity including coating, cell and custom module manufacturing capability, the release said. 

"With the recent resurgence in demand for LFP batteries, Lithium Werks is uniquely positioned to take advantage of the global opportunities before it through its integrated portfolio of LFP solutions," RIL said.

The Mukesh Ambani-led company said that Lithium Werks has a world class IP portfolio with about 219 patents related to LFP process and technology, including exclusive rights to superior LFP nano-technology, cell design, proprietary carbo-thermal reduction manufacturing method and, several next-generation electroactive materials. Besides, it also has integrated cell manufacturing capability.

"The combination of Lithium Werks with Reliance's recently announced acquisition of Faradion Limited, a global leader in sodium-ion cell chemistry, further strengthens Reliance's technology portfolio and provides it access to one of the world's leading portfolio of LFP patents and a management team with vast experience of innovation in cell chemistry, custom modules, packing, and building large scale battery manufacturing facility," the release said.

Reliance will leverage the experience of the senior management teams and the technology and know-how gained through acquisition of Faradion and Lithium Werks to establish an end-to-end battery ecosystem. This will allow Reliance to deliver not only manufacturing at large scale certain key supply chain materials, such as cathode, anode, electrolyte, but also a cell manufacturing facility including leading IOT/AI capabilities giving Reliance the flexibility to produce batteries and battery module systems consisting of different chemistries for various applications across energy storage and mobility.

Commenting on the development, RIL Chairman Ambani 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 tremendous experience of innovation across LFP value chain."

Along with Faradion, Lithium Werks will enable RIL to accelerate its vision of establishing India at the core of developments in global battery chemistries and help it provide a secure, safe and high-performance supply chain to the large and growing Indian EV and energy storage markets, he added.

Lithium Werks CEO and co-founder Joe Fisher 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."

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