Tech

Nexeon Raises Over $200 Million to Fund Battery Materials Manufacturing

Published on: 03 August 2022
by KnowESG
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Further to the announcement of its strategic partnership with and investment from SKC on January 26, 2022, Nexeon, a leading battery materials developer and manufacturer, has completed the second close of its fundraising, resulting in a total investment of US$170m. Additionally, a further USD 50 million of commercial investments are being made in Nexeon’s technologies as a consequence of the investment round.

The capital raised will provide Nexeon with further resources to accelerate the expansion of its manufacturing capabilities to mass produce tens of thousands of metric tonnes annually of its silicon-based anode materials for use in rechargeable lithium-ion batteries.

Nexeon is already supplying several Tier 1 global battery manufacturers and OEMs. It is also actively engaged with emerging regional players as the electric vehicle market develops new supply chains for its products.

Ingevity Corporation (NYSE: NGVT), which provides products and technologies that purify, protect, and enhance the world around us, is the latest cornerstone strategic investor to join a strong shareholder group with extensive manufacturing and automotive market experience.

Erik Ripple, a Senior Vice President at Ingevity, has been appointed to the Nexeon board – see separate announcement.

GLY Mobility Fund and Korean private equity investors Daishin Private Equity and Shinhan Investments also participated in the second close of the round which raised a further US$90 million.

The first close of the investment round, which raised US$80 million was led by SKC, one of Korea’s leading advanced materials companies, along with private equity firm SJL.

Scott Brown, Nexeon Chief Executive, commented:

“These substantial multinational strategic investors and partners are a strong endorsement of our technology, capabilities, and our vision to produce class-leading battery materials, making for a more sustainable and efficient world.

“This oversubscribed funding round and other investments provide us with all the resources we need to execute the manufacturing strategy for our game-changing battery technology. We have already doubled in size this year as we have started to scale up.

“Lithium-ion is the dominant battery technology for portable device applications, particularly in the electric vehicle market. We see wide-ranging market opportunities for our products given the continued improvement in battery technology, environmental pressures, and new and widening market opportunities to address growing demand in all walks of life.”

John Fortson, Ingevity Corporation Chief Executive, commented:

“We are very excited to partner with Nexeon to advance technologies that will increase the efficiency and durability of lithium-ion batteries used in electric vehicles and other consumer electronics, and ultimately contribute to efforts to protect our environment.

 “This partnership expands applications for Ingevity’s activated carbon and creates significant opportunity for market growth.”

Source: Nexeon

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