RIL subsidiary acquires battery maker Lithium Werks for $61 million

Reliance New Energy Solar Limited (RNESL) signed an agreement to acquire assets of US-based Lithium Werks BV at a total transaction value of $61 million. Lithium Werks is a leading provider of cobalt-free, high-performance lithium iron phosphate (LFP) batteries.

The assets acquired by the RIL arm include the entire patent portfolio of Lithium Werks which includes lithium ion batteries and energy storage systems, manufacturing facility in China, key business contracts and hiring of existing employees as a going concern, said the company.

Mukesh Ambani, Chairman, RIL 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 the LFP value chain.”

The transaction value also includes funding for future growth, RIL said in its public statement. “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,” the company said in a statement.

RNESL recently acquired battery start-up Faradion for an enterprise value of Euro100 million. In addition, RNESL will also invest £25 million as growth capital to accelerate commercial roll out. UK based Faradion is one of the leading global battery technology companies.

Last June, RIL announced its foray into green energy with a ~75,000-crore investment over three years. It plans to invest in solar power generation and manufacturing, hydrogen production, e-fuels, and energy storage under its “New Energy and New Materials” division.

RIL’s newly formed arm Reliance New Energy Solar (RNESL) was one of the companies that won the first solar manufacturing tender offered under the PLI scheme.

RNESL has been on an acquisition spree starting with Norwegian solar equipment maker REC Solar Holdings in October 2021. It also picked up a 40 per cent stake in Sterling & Wilson, a solar EPC company. RNESL has announced investment in German solar wafer firm NexWafe and signed a cooperation agreement with Denmark-based Stiesdal A/S for technology development, and manufacturing of hydrogen electrolysers in India.