Freudenberg Sealing Technologies is making a “multi-million dollar investment” to take a majority stake in XALT Energy, a Michigan-based developer of lithium-ion energy storage systems.
The announcement comes less than a year after Freudenberg’s initial “multi-million dollar investment”, which gave the company a 31% stake in XALT. Freudenberg cited “increasing demands for lithium-ion battery technology that specifically targets commercial vehicles” as the motivation behind increasing its stake— which gives them a “more than 50% share” of the battery manufacturer.
XALT Energy will retain its name and will become an affiliate brand of the Freudenberg global group, headquartered in Germany. Jess Michalski will take over leadership of XALT from retiring CEO, Richard Cundiff.
Freudenberg Sealing Technologies CEO Claus Moehlenkamp said: “This acquisition is a crucial part of our future business strategy to transform as a supplier into a market leader of new mobility technologies and services.”
“We continue to see evidence that the entire global mobility landscape is shifting to incorporate new powertrain technologies.”
In 2015 XALT signed a US$1 billion deal to supply lithium titanate batteries for use in Hybrid Kinetic Group’s electric buses in China.
XALT has also been working with manufacturers such as Fiat, Ford, and GM through the US Advanced Battery Consortium, which announced in September 2018 a partnership with XALT to develop a “12V Lithium Manganese Oxide-Lithium Titanate Stop-Start Battery System”.