Swiss energy storage company Leclanché SA announced a strategic reorganization which will convert the company into a market-oriented, research-driven, software and systems integration company with expanded production and R&D capabilities based on a partnership agreement with Eneris Group.

Eneris Group will make direct investments in Leclanché totaling up to CHF 95 million (US$99 million) in two manufacturing JVs and a Technology License Agreement.

Key features of this agreement include:

1. Eneris will provide Leclanché with working capital financing of up to CHF 42 million (US$44 million) to fund fully the business plan through June 2021;

2. Licensing of Leclanché’s technology to Eneris against payment of a royalty fee of up to CHF 32 million, according to an agreed-upon payment schedule. This licensing is non-exclusive on a right to use basis, with the freedom to carry out future developments. The licensing is applicable worldwide excluding the Republic of India;

3. Creation of two manufacturing Joint Ventures in which Eneris will hold the majority of the share capital thanks to an investment in excess of CHF 53 million (US$55 million) for a major capacity expansion program: one in Germany for the production of cells and the other in Switzerland and Poland for the assembly of modules. A third is being considered for France;

4. Leclanché will sign a production offtake agreement with Eneris in which Eneris will reserve the required production capacity for Leclanché in the coming years;

5. Leclanché will retain full ownership of its technology and will continue to invest in Research & Development (R&D) activities for cells, modules and Battery Management Systems (BMS).

The new Leclanché shall pivot increasingly towards more software and systems integration using the competitive products manufactured-at-scale in partnership with Eneris Group, said Anil Srivastava, CEO of Leclanché.