Tesla to acquire energy tech firm Maxwell Technologies for $218m
Tesla to pay 55 per cent premium to get its hands on Maxwell's ultracapacitor technology
Tesla has agreed to acquire battery technology company Maxwell Technologies in an all-stock deal valuing the 'dry electrode' developer at $218 million.
The deal ought to enable the electric vehicle maker to increase the driving range of its electric cars and to also cut the production costs as more competitors enter the electric vehicles market - but could spell trouble for its existing battery supplier Panasonic.
"We are always looking for potential acquisitions that make sense for the business and support Tesla's mission to accelerate the world's transition to sustainable energy," Tesla said in a statement.
Tesla's offer values Maxwell at a 55 per cent premium to the company's closing price on Friday.
The Maxwell acquisition is Tesla's fifth since 2015. In the past three years, the company has bought renewable energy services company SolarCity - whose chairman was Elon Musk's cousin - as well as three other small technology firms.
According to Maxwell, its board has already approved the deal, which is expected to be closed in the second quarter of 2019.
Last month, Maxwell executives revealed that they have patented a new dry electrode technology, which could significantly cut the costs of electric vehicle batteries, while also increasing their driving range. The company said it was looking to form strategic alliances centred around the technology within the next six months.
Maxwell Technologies, which was founded in 1965, has plenty of experience with traditional lithium-ion batteries. It is known for making ultracapacitors, which can store and release energy much faster than batteries. These ultracapacitors also offer a longer operational life, as well as high power density.
The company says using ultracapacitor technology along with the energy of batteries can help achieve quick response times and also increase battery life by up to two times.
Tesla CEO Elon Musk said earlier that ultracapacitor technology could be a likely source of a breakthrough in electric car technology than batteries. In 2013, Musk revealed on Twitter that he had once planned to conduct research on ultracapacitors at Stanford University.
Last May, Volvo-owner Geely Holding Group also revealed that Maxwell's ultracapacitor technology had helped to deliver "peak power" for some of the hybrid cars it has been developing.