German-based Freudenberg has purchased a Midland, Michigan based battery manufacturer as a part of its strategy to be a part of the electric vehicle & mobility technology race. In a recent statement, Freudenberg Sealing Technologies GmbH & Co. said that it has acquired a huge stake of XALT Energy LLC, which manufactures lithium ion batteries at its highly-automated facility in Midland.
As per the release, currently, Freudenberg owns over 50% stake of XALT, as it purchased a 31% ownership share of the firm in March 2018. After these two ‘multimillion dollar’ investments, Freudenberg is eying to acquire the remaining shares of XALT in the forthcoming years. None of the companies have disclosed the terms of the deal.
Cheryl Eberwein, a spokeswoman for Freudenberg, said that the invested over $600 million last year, in personnel and infrastructure technology at XALT. She added that the firm is looking forward to hire 19 production staff members in the approaching weeks.
With this deal, XALT has received a robust capital boost, which has enabled the company to augment manufacturing and R&D at its Midland 460,000-square-foot plant.
With this acquisition, Freudenberg has become the latest business to enter into electric vehicle battery arms race that has gaining much prominence in recent time, as automakers double-down on EV investment. The segment has become highly competitive with companies like Tesla shelling out money on lithium-ion batteries.
Freudenberg CEO Claus Moehlenkamp said that the entire global mobility arena, ranging from passenger vehicles to busses and heavy-duty trucks to railroad transportation, etc. has started inducing novel powertrain technologies, such as lithium-ion batteries. The mobility arena is evolving more than ever before, with heavy-duty trucks market witnessing paradigm shift in manufacturing concept.