in quest for better batteries, tesla buys maxwell technologies - energy storage companies
Teslahas agreed to buy energy storage company Maxwell Technologies for $0. 218 billion
Stock trading may help electric car manufacturers produce more energy and last longer batteries when they need to cut costs and face increasing competition.
Tesla is rapidly increasing production of its Model 3 sedan and needs to cut prices to reach a wider customer base than pure luxury cars.
On January, executives at Maxwell told investors that the company had developed and obtained a patent for a "dry electrode" technology that could significantly increase battery life for electric vehicles and reduce
In a report, Maxwell said it expected a strategic alliance around the technology "within six months.
The company also produces super capacitors, which release energy faster than the battery and is considered a complement to battery technology.
The super capacitor, combined with the energy of the battery, enables fast response times, works over a wider temperature range, and doubles battery life, according to a blog post on the Maxwell website. Volvo-
Geely Holding Group, the owner, announced an agreement with Maxwell on last May, saying the company's super-capacitor technology could help provide "peak power" for hybrid cars ".
Tesla needs Maxwell's solvent.
"Free battery electrode manufacturing is a viable way to reduce battery costs," said Craig Owen of Roth Capital Partners . ".
"Real competitors are coming, so Tesla needs to grow fast.
Maxwell's customers also include GM and Lamborghini.
The offer for each Maxwell stock is $4.
The companies said 75, 55 higher than last Friday's closing price.
Maxwell's shares rose to $4. 58.
At present, Panasonic is the exclusive battery supplier of Tesla Motors.
Tesla's chief executive, Elon Musk, emphasized the importance of supercapacitors as early as 2013.
"I'm a huge fan of super capacitors.
I'm going to do my PhD at Stanford University.
But we need a breakthrough in energy density. . .
Musk said on Twitter that Tesla also often sells power storage with the solar business, which can be used for backup systems for home and public grids.
Maxwell expects the deal to be completed on or shortly after 2019, which has been approved by the board.
DLA Piper is an external legal adviser to Maxwell and Barclays Capital is an independent consultant.
Wilson Sonsini Goodrich & Rosati is an external legal adviser on behalf of Tesla.