Leclanché SA signed a framework agreement with Pinnacle International Capital which will see the company secure expansion funding, subject to the completion of due diligence. This signed Framework Agreement builds on the binding terms already agreed to define a joint venture structure that will cement this partnership and fund the development of a 2GWh battery plant in Germany as well as a 2GWh operation in the Middle East.

The agreement defines the structure of the different agreements to be put in place for this partnership and the process to complete them. The CHF 360 million (US$404 million) investment will be subject to the outcome of an engineering review and due diligence during which the final amount will be determined.

Under the terms of the agreement, Pinnacle and Leclanché will establish a joint venture company funded by Pinnacle for an amount of up to CHF 360 million and Leclanché will take a 50% stake in the joint venture company through a contribution in kind, giving Pinnacle an approximate 40% stake in Leclanché.

Pinnacle will outline the financial deployment structure during the engineering review. Pinnacle will be granted a further option to acquire up to 30% additional stake in Leclanché through an agreement with SEF Lux in the amount of up to CHF 240 million, with the exact amount and percentage to be determined during the due diligence.

Once implemented, this strategic partnership will fully fund Leclanché’s business plan and the expansion of its operations. With growing demand for Leclanché storage solutions, this partnership will provide a solid basis for the business to accelerate its growth.