Tesla has not been known to make many acquisitions, but we are now learning that it has entered into an agreement to acquire ultra-capacitor and battery component manufacturer Maxwell based in California.
It is the car manufacturer's fifth important acquisition to date.
Tesla has confirmed that Tesla has entered into an agreement with the company and commented:
"Total share purchase of over $ 200 million is announced by Maxwell this morning and we reached Tesla to confirm the news. We are always on Look for potential acquisitions that make sense to the business and support Tesla's mission to accelerate the world's transition to sustainable energy. "
Maxwell is best known as an ultra-capacitor manufacturer, and has also recently talked about a dry electrode technology for batteries.
Dr. Franz Fink President and CEO of Maxwell, commented on today's announcement:
"We are very pleased with today's announcement that Tesla has agreed to buy Maxwell. Tesla is a respected and world-class innovator sharing a common goal to build a more sustainable future. We believe this transaction is in the best interest of Maxwell's shareholders, giving investors the opportunity to participate in Tesla's mission to accelerate the advent of sustainable transport and energy. "
Maxwell's stock is traded just over $ 3.00 per share on the market close to last week for a valuation of $ 1
Tesla has entered into an agreement to buy them for $ 4.75 per share, making the transaction worth over $ 200 million.
The company is based in San Diego and has approximately 380 employees.
Maxwell had talked about a potential "strategic partnership" in the work for a few months about his dry electrode technology.
Apart from the new technology, the company also has its ultra-capacitor business. They have reported $ 91 million in revenue during the first 9 months of 2018.
Here's their investor presentation:
Tesla's CEO Elon Musk first moved to California in the 90's to do a PhD on ultrasound capacitors, but he quickly stopped to start an internet company.
The technology has never been adopted by electric vehicle manufacturers as favored Li-ion batteries.
But Tesla's purchase of Maxwell may have little to do with ultra-capacitors.
Car manufacturer may be more interested in Maxwell's dry electrode technology that has recently been hyping.
Maxwell claims that the electrode allows for an energy density of over 300 Wh / kg in current demonstration cells, and they see a path of over 500 Wh / kg.
This will make a significant improvement over current battery cells used by Tesla and allow for longer range or lighter weight, but not even the most attractive advantage of Maxwell's dry electrode.
They claim that it would simplify the production process and result in a "10 to 20% cost reduction versus scientific wet electrodes" while "prolonging battery life up to a factor of 2."
History continues to evolve … update for more information.