UK-based lithium-ion battery maker Nexeon bags €166.1M to expand manufacturing capabilities

Oxfordshire, UK-based Nexeon, a company that develops silicon anodes for lithium-ion batteries, announced on Wednesday the second close of its fundraising at $170M (approximately €166.15M).

As a result of the investment round, an additional $50M is being invested in Nexeon’s technologies.

This news follows the company’s strategic alliance and investment from SKC in January  2022. 

GLY Mobility Fund and Korean PE investors Daishin Private Equity and Shinhan Investments participated in this second close of the round. The first close of the investment round, which raised $80M, was led by SKC along with private equity firm SJL.

Capital utilisation

Nexeon says it will use the funds to accelerate the expansion of its own manufacturing capabilities, enabling it to mass produce tens of thousands of metric tonnes annually of its silicon-based anode materials for use in rechargeable Lithium-ion batteries.

Currently, the company is already supplying a number of 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 products.

Nexeon CEO, Scott Brown, says, “These substantial multinational strategic investors and partners are a strong endorsement of our technology, capabilities and our vision – to produce 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 on the manufacturing strategy for our battery technology. We have already doubled in size this year as we have started to scale up.”

Producing materials for better batteries

Founded in 2006, Nexeon is a battery material and licensing company that works with product OEMs and battery companies to enable the next generation of lithium-ion batteries. The company says its silicon materials incorporated in battery anodes enable a much higher energy density and battery capacity.

Nexeon CEO, Scott Brown, says, “Lithium-ion is the dominant battery technology for portable device applications, particularly 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.”

Nexeon claims to be engaged with a host of blue-chip clients in the automotive and consumer electronics sectors who see significant benefit in Nexeon materials to their end markets. Though Nexeon is headquartered in Oxfordshire, UK, its application engineering labs are in Japan.