Following the announcement of Nexeon's strategic partnership with and investment from SKC in January, the battery materials developer has completed the second close of its fundraise resulting in a total investment of $170m. A further $50m of commercial investments is being made in Nexeon’s technologies as a consequence of the investment round.
The capital raised will provide Nexeon with resources 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 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 their products.
Ingevity Corporation is the latest strategic investor to join a shareholder group with extensive manufacturing and automotive market experience. Eric Ripple, a senior vice president at Ingevity, has 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 round which raised a further $90m. The first close of the investment round, which raised US$80m, was led by SKC along with private equity firm SJL.
Scott Brown, Nexeon chief executive, said that the multinational strategic investors are a strong endorsement of Nexeon's technology, capabilities and vision to produce class leading battery materials.
“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,” he said in a statement.
“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.”