Further to the announcement of its strategic partnership with and investment from SKC on 26 January 2022, Nexeon, a battery materials developer and manufacturer has completed the second close of its fundraise resulting in a total investment of $170m. A further $50m of investments is being made in Nexeon’s technologies as a result of the investment round.
The capital raised will provide Nexeon with further resources to accelerate the expansion of its own 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.
Who were the investors in the funding round?
Nexeon supplies a number of Tier 1 battery manufacturers and OEMs. It is also engaged with emerging regional players as the EV market develops new supply chains for their products.
Ingevity Corporation, 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, SVP at Ingevity, has also been appointed to the Nexeon board. GLY Mobility Fund and Korean private equity investors Daishin Private Equity and Shinhan Investments also participated in the second close of the funding round which raised a further $90 million.
The first close of the investment round, which raised $80 million was led by SKC, one of Korea’s leading advanced materials companies, along with private equity firm SJL.
What were the executives’ thoughts on the funding?
Scott Brown, Nexeon Chief Executive Officer, said, “These substantial multinational strategic investors and partners are a strong endorsement of our tech, 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 on 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 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,” Brown said.
John Fortson, Ingevity Corporation Chief Executive Officer said, “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.”