Freudenberg Sealing Technologies of Plymouth Township, a large auto supplier, today announced it has become majority stakeholder of XALT Energy, a Midland-based developer and manufacturer of lithium-ion technology solutions targeted for heavy-duty mobility applications.
XALT Energy specializes in applying lithium-ion technology to large-scale, high-energy, high-power storage solutions for industries including commercial transportation, rail, marine, industrial operations, and automotive.
Freudenberg acquired a multi-million-dollar, 31-percent stake in XALT Energy last March. Now, increasing demands for lithium-ion battery technology that specifically targets commercial vehicles as well as marine and rail applications has prompted Freudenberg to acquire a more than 50 percent share of the battery manufacturer.
With the additional multi-million-dollar investment, XALT Energy is able to revitalize production capabilities at the company’s Midland production plant and intensify its research and development efforts into new mobility technologies. Additionally, Freudenberg has a standing agreement to acquire all remaining shares of XALT Energy over the next few years.
“We are pleased that this investment provides a much-needed capital boost to XALT Energy and also puts Freudenberg in the driver’s seat,” says Claus Moehlenkamp, CEO of Freudenberg Sealing Technologies. “This acquisition is a crucial part of our future business strategy to transform as a supplier into a market leader of new mobility technologies and services.
“As our customers transition to lithium-ion battery and fuel cell powertrain options, our investment in XALT Energy will enhance our ability to supply them with materials, products and systems solutions that meet new, complex technical challenges.”
The company’s 460,000-square-foot automated assembly facility in Midland includes advanced clean rooms and 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.
XALT Energy working with automotive OEMs, including FCA, Ford Motor Co., and General Motors Co. through the U.S. Advanced Battery Consortium in Southfield. 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. GM also said it was using XALT battery systems in an experimental electric drag racer, the eCOPO Chevrolet Camaro concept vehicle.