Reliance Industries arm acquires battery tech firm Faradion for GBP 100 mn

Reliance New Energy Solar Ltd (RNESL), an arm of Reliance Industries Ltd (RIL), has signed a definitive agreement to acquire 100 per cent stake in UK-based Faradion Limited for an enterprise value of GBP 100 million.

With its patented sodium-ion battery technology, Faradion is one of the leading global battery technology companies and has a competitively superior, strategic, wide-reaching and extensive IP portfolio covering several aspects of sodium-ion technology, said RNESL in a press release on Friday.

RNESL will also be investing another GBP 25 million into the entity as growth capital to accelerate commercial roll out, the firm said.

RIL will use Faradion’s state-of-the-art technology at its proposed fully integrated energy storage giga-factory as part of the Dhirubhai Ambani Green Energy Giga Complex project in Jamnagar, the company added.

"This will further strengthen and build upon our ambition to create one of the most advanced and integrated New Energy ecosystems and put India at the forefront of leading battery technologies. The sodium-ion technology developed by Faradion provides a globally leading energy storage and battery solution which is safe, sustainable, provides high energy density and is significantly cost competitive. In addition, it has wide use applications from mobility to grid scale storage and back-up power,” Mukesh Ambani, chairman of Reliance Industries, was quoted as saying.

Linklaters LLP acted as the legal advisor and Ernst and Young as the accounting and tax advisor to Reliance on this transaction, said the company.

The company aims to work with Faradion management and accelerate its plans to commercialize the technology through building integrated and end-to-end giga scale manufacturing in India.
 

"We believe this will be one of our many steps that will also enable, accelerate, and secure large scale energy storage requirements for our Indian partners developing and transforming India’s EV mobility and transport sector,” Ambani added.

“Together with Reliance, Faradion can bring British innovation to India and globally, as the world increasingly looks beyond lithium. We look forward to being part of India’s Net Zero mission,” James Quinn, chief executive officer at Faradion was quoted as saying.

On Thursday, Sterling & Wilson board of directors approved allotment of 2.93 crore equity shares to Reliance New Energy Solar Limited (RNESL) at a price of Rs 375 per share, aggregating to Rs 1,099 crore. Post allotment, RNESL will hold 15.46 per cent of the total paid-up equity share capital of the firm. On consummation of the transaction, RNESL will become a promoter of the Sterling & Wilson along with existing promoters and promoter group of the firm.