Freudenberg Acquires Majority Stake in XALT Energy

Freudenberg Acquires Majority Stake in XALT Energy

Freudenberg Sealing Technologies has acquired a majority stake in XALT Energy. With this additional multi-million dollar investment, XALT Energy will be able to enhance its production capabilities at the company's Midland production plant and to intensify its research and development efforts into new mobility technologies. The move has come amidst the increasing demands for lithium-ion battery technology that specifically targets commercial vehicles as well as marine and rail applications, stated the company.

XALT Energy specialises in applying lithium-ion technology to large-scale, high-energy, high-power storage solutions for industries including commercial transportation and automotive. The company's 460,000-square-foot automated assembly facility in Midland produces cells, packs, modules and management controls and software for lithium-ion power systems. The company also operates a research and development laboratory in Pontiac, Mich. In March 2018, Freudenberg had announced acquisition of 31 percent stake in XALT Energy through a multi-million dollar investment. Additionally, Freudenberg has a standing agreement to acquire all remaining shares of XALT Energy over the next few years.

Claus Moehlenkamp, CEO of Freudenberg Sealing Technologies, said the company will continue to invest in technologies and materials that help industries achieve lower friction, lighter weight, fewer emissions, longer service life and safer operating conditions for internal combustion powertrain systems. It has also launched a Battery and Fuel Cell Division tasked with developing advanced technology solutions for new mobility scenarios, he added.

Freudenberg and XALT Energy have already entered into strategic partnership agreements to provide advanced lithium-ion battery systems to heavy-duty segment leaders such as New Flyer of America for transit buses. XALT Energy is also working with automotive OEMs, including Fiat Chrysler Automobiles, Ford Motor Co. and General Motors Corp. (GM), through the U.S. Advanced Battery Consortium LLC. In September 2018, the Consortium announced it would partner with XALT to develop a 12-volt, Lithium Manganese Oxide-Lithium Titanate Stop-Start battery system. Recently, GM also announced it was using XALT battery systems in an experimental electric drag racer, the eCOPO Chevrolet Camaro concept vehicle.