Nexeon Limited—a supplier of advanced silicon anode materials for next generation lithium-ion batteries—announced a US$80-million investment from a consortium including SKC Co. Ltd (SKC), SJL Partners LLC (SJL), BNW Investment Co. Ltd, (BNW) and Kiwoom Private Equity Inc. Ltd (Kiwoom). Through this transaction, Nexeon enters into a strategic partnership with SKC, a major global battery and semiconductor materials company, for volume manufacturing of its silicon anode materials.
The fundraising and formation of a manufacturing partnership are part of Nexeon’s manufacturing strategy to accelerate the supply of its groundbreaking silicon anode materials at volume in order to meet the rapidly increasing demands from its customers in automotive and consumer electronics industries across Europe, North America, and Asia.
SKC, a US$5.0-billion market cap company, is one of Korea’s leading advanced materials companies, with a strategic focus on rechargeable battery, semiconductor and eco-friendly materials, and a global presence in Europe, North America, and Asia.
SKC plans to enter the silicon anode material market by combining its long-established global mass production and marketing capabilities with Nexeon’s differentiated technology. First, SKC will independently commercialize low-content products and make inroads into the global market, and then commercialize high-content products in a joint venture with Nexeon in keeping with the pace of the market growth.
In addition, SKC plans to provide differentiated solutions to customers by maximizing synergy with SK nexilis, a manufacturer of copper foil. SKC will be able to provide superior mobility material solutions to customers by increasing the proportion of silicon anode materials through the utilization of high-strength and high-elongation copper foil technology that withstands the volume expansion of silicon anode materials, among others.
SJL is a private equity firm that seeks cross-border investments in partnership with Asia-based strategic investors.
In November 2021, PPES—the joint venture between Panasonic Corporation and Toyota Motor Corporation—and Nexeon agreed to extend their funded joint development agreement (JDA). The partners are focusing their work on the commercialization of e-mobility applications of lithium-ion batteries.
The JDA allows the partners to respond to opportunities from automotive manufacturers seeking to achieve next generation performance.