Israel-based lithium and flow battery developer UltraCharge is set to jointly manufacture its high voltage lithium-ion battery pouch cells in Indonesia with domestic lead-acid firm PT Garda Persada.
Under the terms of the deal, Australia-listed UltraCharge will also market and distribute the pouch batteries with Persada— which will hold a 70% stake in the joint venture.
Persada will be required to secure an order of at least $5 million from its existing military customers to kick-start the new business.
UltraCharge said it will then contribute up to $3m to build a production facility near Jakarta.
UltraCharge did not disclose the facility’s production capacity, but said the joint venture expected sales in Indonesia and throughout Southeast Asia.
Persada has been supplying a range of lead-acid and sealed lead-acid batteries to Indonesia’s armed forces since 2013.
UltraCharge CEO Kobi Ben-Shabat (pictured) said the deal “is hugely significant and marks our first production agreement with a joint venture partner”.
“The defence industry is a significant market for UltraCharge’s unique, lightweight high voltage lithium-ion battery technology solutions,” Ben-Shabat said.
UltraCharge told BBB last year it was finalising a raise of AUD2.5 million ($1.9m) to boost battery tech investments. The company offers a suite of intellectual property including technology to replace graphite in anodes with nanotube fibres made from titanium dioxide “with the potential to revolutionise” the LIB market.