Reliance New Energy Solar Ltd (RNESL) has signed a deal to acquire Faradion Limited, a leading sodium-ion battery technology company.
The deal is worth GBP 100 million with RNESL investing GBP 25 million as growth capital in the company.
The deal will further “strengthen and build upon our ambition to create one of the most advanced and integrated new energy ecosystems and put India at forefront of leading battery technologies,” Mukesh Ambani, Chairman of Reliance Industries said.
“Faradion’s sodium battery provides a battery solution that is safe, sustainable, and provides a high energy density and is significantly cost-competitive,” RIL Chairman added.
“This deal with Reliance firmly establishes Faradion’s sodium-ion batteries as an integral part of the global value chain for cheaper, cleaner, more sustainable energy for decades to come,” Chris Wright, Chairman and Co-founder of Faradion said.
Based out of Sheffield and Oxford in the UK, Faradion provides access to high density, sustainable, and competitive cost battery technology.
RNESL will use Faradion’s state-of-the-art technology at its proposed fully integrated energy storage giga-factory as part of the Dhirubhai Ambani Green Energy Giga Complex project at Jamnagar.
Faradion’s batteries have wide use applications from mobility to grid-scale storage and backup power. Its batteries utilize sodium that will secure India’s energy storage requirements for renewable energy and the fast-growing electric vehicle market, he added.
Lithium is a scarce metal, but sodium is 1,200 times more abundant. Rather Sodium is the seventh most abundant material on the planet. It is mixed with soda ash and is easily available, including in seawater. This abundance also makes sodium cheaper than lithium at a time when the price of lithium is continuously rising.
The price of 99.5 percent lithium has reached over Rs 27 lakh per tonne, rising over 450 percent in the past year.
The prices are expected to increase well into the end of the decade, experts said. Plus, as the demand for lithium rises, electric vehicles could become more expensive, slowing down the adoption of electric vehicles.