US-based automotive industry components and parts supplier BorgWarner is to enter the batteries market under a joint venture with California energy storage start-up Romeo Power.
BorgWarner will be the majority partner in the 60-40 joint venture— also taking a 20% equity stake in Romeo and two seats on that company’s board.
The new business will encompass the mobility portion of the battery pack business, initially focused on performance and light vehicles. Financial details were not disclosed.
Battery modules and packs to be made under the joint venture are expected to include intelligent battery management systems “with proprietary algorithms for enhanced performance and cycle life, as well as proprietary thermal engineering for active and passive cooling”, BorgWarner said. “The addition of battery packs will energise BorgWarner’s existing portfolio for hybrid and electric vehicles that includes electric motors, power electronics and high-voltage battery heaters.”
Romeo CEO Michael Patterson said the tie-up would see his company take “a big step” in the battery mobility sector by having access to BorgWarner’s scale and resources.
Romeo was founded in 2015 by a group of engineers from SpaceX, Tesla, and Samsung. In 2017, Romeo secured US$30 million in seed financing and completed construction of a 113,000 square-foot lithium-ion battery pack manufacturing facility in Los Angeles.
