UK battery technology company Nexeon has completed a €116.7 million (£100 million/$133 million) investment round, giving the Oxfordshire-based business fresh capital to expand its domestic operations and advance the commercialisation of its silicon-based battery materials.
The National Wealth Fund is contributing €61.4 million (£52.6 million/$70 million) to the round. Korea Development Bank and Honda Xcelerator Ventures have also joined as new investors. Nexeon plans to deploy the capital across its UK operations while strengthening its position in the battery supply chain and creating new jobs.
A particularly significant part of the investment is what it could mean for Nexeon’s manufacturing capabilities in Britain. National Wealth Fund financing will support the development of a UK-based pilot manufacturing facility, tied directly to the company’s research and development work. The investment will also allow Nexeon to expand its manufacturing technology unit and add new highly skilled positions.
Silicon anodes remain central to Nexeon’s growth plans
Nexeon was incorporated in 2006 and focuses on manufacturing silicon anode materials for lithium-ion batteries. The company claims that its products have the capability to provide a much higher cell energy density, thereby allowing for smaller and cheaper batteries.
For electric vehicles, Nexeon says those improvements can translate into better range and charging performance. Its materials are designed to work across the three major lithium-ion cell formats: cylindrical, prismatic and pouch cells.
That cell-format flexibility is an important part of the company’s commercial proposition as it moves beyond technology development and further into large-scale manufacturing.
Nexeon also says its intellectual property base includes more than 290 patents, with its patent portfolio covering major markets including the US, Europe, China, South Korea and Japan.
Nexeon CEO Dr. Scott Brown described the funding as an endorsement of both the company’s technology and its potential role in future lithium-ion batteries.
“This investment is a strong endorsement of Nexeon’s technology and our role in enabling the next generation of lithium-ion batteries. The National Wealth Fund’s support reflects the strategic importance of our work, not only in advancing battery performance but also in strengthening the UK’s position in the global battery supply chain.”
UK investment follows manufacturing expansion in South Korea
The latest financing comes as Nexeon is already expanding its manufacturing footprint outside the UK.
The company recently launched what it describes as the world’s first volume production facility for silicon-carbon materials in Gunsan, South Korea. The plant is dedicated to materials intended to improve lithium-ion battery performance and has recently secured ISO 9001:2015 certification.
The combination of a volume-production operation in South Korea and a planned pilot manufacturing facility in the UK gives the latest funding round a broader significance than a straightforward capital raise. It supports Nexeon’s effort to connect research, manufacturing technology and commercial production as it scales its silicon-anode business.
The UK government is also positioning the investment within its wider focus on advanced manufacturing.
Industry Minister Blair McDougall said the Nexeon investment would support skilled jobs while helping keep Britain’s battery industry focused on research and innovation. He also linked the funding to the government’s wider industrial strategy and support for frontier industries such as batteries.
For Nexeon, the immediate priority is now execution. The €116.7 million round provides additional financing for commercialisation, UK manufacturing development and continued expansion at a time when the company is moving its silicon-based battery materials from technological development towards greater manufacturing scale.
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