Switzerland-based energy storage company Leclanché SA has secured new additional funding from FEFAM, Leclanché’s largest shareholder. In addition to CHF 75 million (US$76 million) committed corporate funding, FEFAM has agreed to provide a conditional CHF 50 million (US$51 million) funding facility for acquisitions and joint ventures. The facility shall operate on the basis of a Right-of-First-Offer (ROFO) for FEFAM.

The new funding follows Leclanché’s full year 2017 results announcement on 3 May 2018 that it is expected to be EBITDA positive by 2020, supported by an order book of over 50 MWh, contributing CHF 40-50 million of revenue in 2018, and a milestone of 100MWh of energy storage systems in operation by 2018.

Further, as indicated on 1 March, Leclanché confirms that it has signed a non-binding term sheet with a potential strategic investor to increase its overall corporate funding to between CHF100 million (US$102 million) and CHF125 million (US$127 million). The company said that it anticipates that negotiations will be completed, and a final agreement will be executed, by Q4 2018.

This substantial investment fully funds our business plan through to 2020 when we expect to be EBITDA positive. We thank FEFAM for their continued strong investment support. This additional funding will allow us to capitalize on the exciting opportunities we see in the fast-growing markets of stationary grid-based storage and e-Transport worldwide.

We aim to use the acquisitions and joint-ventures facility to accelerate Leclanché’s technology leadership through margin accretive acquisition(s); and grow market share in Europe, Asia and North American in both the stationary grid-based storage and e-Transport businesses.

We are in the process of completing the acquisition of a leading Energy Management Software solution from a company based in the USA. We are also in the advanced stage of completing an agreement to set up a joint venture with a market leader in India. This JV will give Leclanché a strong foothold in one of the potentially largest Electric Vehicles market in the world. We look forward to updating the market in the near future.

—Anil Srivastava, CEO of Leclanché