Reliance Industries Acquires Remaining Stake in Reliance Lithium

On March 14, 2022, in Mumbai, Reliance New Energy Limited (“Reliance”), a wholly-owned subsidiary of Reliance Industries , signed definitive agreements to acquire substantially all of the assets of Lithium Werks BV (“Lithium Werks”) for a total transaction value of $61 million, including funding for future growth. The assets include the entire patent portfolio of Lithium Werks, manufacturing facilities in China, key business contracts, and the hiring of existing employees as a going concern.  This deal is all about the complete acquisition of Lithium Werks. After the deal is finalized, Reliance New Energy Limited will leverage the 30+ years of extensive experience of the Lithium Werks company. To strengthen Reliance’s leadership in cell chemistry technology and expedite the establishment of multi-gigawatt-hour-scale battery manufacturing in India, Reliance New Energy Limited has acquired the assets of Lithium Werks. With over 30 years of experience and innovation, Lithium Werks specializes in high-performance LFP solutions. To become the market leader, Reliance Industries acquired 100% of the assets of Lithium Werks, including their experienced team. The 12.7% stake that was pending has now been completed.

Lithium Werks:

Lithium Werks offers a range of LFP batteries for various applications, including energy storage systems, electric vehicles, and industrial equipment.  The company’s LFP batteries are known for their long cycle life, high energy density, and excellent safety features, making them ideal for demanding environments. Lithium Werks also provides customized battery solutions to meet the specific needs of its customers, ensuring optimal performance and efficiency.

Focusing strongly on sustainability and environmental responsibility, Lithium Werks is committed to reducing the reliance on cobalt in battery production and promoting the use of clean energy technologies. As the demand for LFP batteries continues to grow, Lithium Werks is well-positioned to lead the market with its innovative solutions and cutting-edge technology. With 219 patents pertaining to the LFP process and technology, Lithium Werks possesses an exceptional intellectual property portfolio. These patents grant them the exclusive right to cell design, advanced LFP nanotechnology, exclusive carbo-thermal reduction manufacturing techniques, and a number of next-generation electro-active materials.  Unique intellectual property and design and engineering expertise underpin an exciting product development pipeline. A cell manufacturing capability that is integrated.

Acquisition of Lithium Werks:

LFP is quickly becoming 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 that brings tremendous experience in innovation across the LFP value chain.

Conclusion: Reliance New Energy Limited will become the market leader with this acquisition and lead the local and global market in the LFP segment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to change. Please consult an expert before making related decisions.