This funding round marks the largest ever for a technology firm in Slovakia and also saw participation from the nation's sovereign wealth fund, Lilium, Bromo Capital, IPM Group, and Cielo Capital. It further builds on previous investments from strategic partners Amara Raja and Rio Tinto.
SIGNIFICANCE
This development comes shortly after Northvolt, a Swedish company specializing in battery cells for electric vehicles, filed for Chapter 11 bankruptcy protection in the United States, raising alarms about the future of the electric vehicle battery sector in Europe. Northvolt indicated earlier this month that it plans to divest its electric industrial battery division by the end of the year.
BACKGROUND
In June, Slovakia's Economy Minister Denisa Sakova announced that Gotion and InoBat would invest 1.2 billion euros to establish an electric vehicle battery manufacturing facility in Slovakia, which would represent the second-largest investment in the nation's history. The automotive industry is a crucial component of Slovakia's economy.
Countries are competing to attract investments in this sector as Europe seeks to enhance its electric vehicle battery industry and decrease dependence on leading Asian battery manufacturers, despite a slower-than-anticipated demand for electric vehicles.
KEY INSIGHTS
"Western Europe has been slow to respond to the urgent need for battery technology. InoBat has been diligently developing its own high-performance cell technology and forming a practical partnership with Gotion to produce cost-effective cells," stated Andy Palmer, chairman of InoBat's board.
FUTURE PLANS
InoBat intends to increase the production of European-designed battery cells over the next year, initiate an energy storage venture in collaboration with Gotion, and launch another funding round to facilitate the expansion of its operations in Slovakia, Serbia, and Spain, while also accelerating growth in new markets.