Tesla has entered into an agreement to purchase developer and manufacturer of energy solutions Maxwell Technologies for US$218 million ($300 million) in an all-stock deal.
Following the purchase, Maxwell Technologies will be merged with a Tesla subsidiary and become a wholly owned subsidiary of Tesla.
“We are very excited with today’s announcement that Tesla has agreed to acquire Maxwell. Tesla is a well-respected and world-class innovator that shares a common goal of building a more sustainable future,” said Dr Franz Fink, president and CEO of Maxwell.
“We believe this transaction is in the best interests of Maxwell stockholders and offers investors the opportunity to participate in Tesla’s mission of accelerating the advent of sustainable transport and energy.”
Maxwell Technologies executives informed investors in January that it had developed and patented a dry electrode technology that could significantly increase the driving range and reduce the cost of electric vehicle batteries. The company also stated that it expected strategic alliances centered around the technology to be established within six months.
Maxwell Technologies also produces makes ultracapacitors, which discharge energy faster than batteries and complement battery technology. According to the company, ultracapacitors combined with the energy of batteries of can enable rapid response times, function across a broader temperature range and lengthen battery life by up to two times.
Observers have noted that Tesla could use Maxwell’s Maxwell’s solvent-free battery electrode manufacturing for a viable path to lower battery costs.
Maxwell said that it anticipates the merger will be completed in the second quarter of 2019 or shortly thereafter.