Freudenberg Sealing Technologies has become majority stakeholder of XALT Energy, a Midland, MI-based global developer and manufacturer of lithium-ion technology solutions targeted for heavy-duty mobility applications. In March 2018, Freudenberg announced it had acquired a 31% ownership stake in XALT Energy through a multi-million-dollar investment in its operations. 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% share of the battery manufacturer. With this additional multi-million-dollar investment, XALT Energy says it is able to revitalize production capabilities at the company’s Midland production plant and to 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. 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,” said Claus Moehlenkamp, CEO of Freudenberg Sealing Technologies. “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. We are delighted with this strategic venture.”

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. The company also operates a research and development laboratory in Pontiac, MI.

Under Freudenberg’s oversight, the XALT Energy name will remain and become an affiliated brand of the global group headquartered in Germany.

Freudenberg and XALT Energy have already entered into strategic partnership agreements to provide advanced lithium-ion battery systems to heavy-duty segment leaders such as New Flyer of America for transit buses. In 2018, Freudenberg agreed to work with a leading provider of electrical power distribution and automation for the marine industry to explore battery solutions for its applications.

XALT Energy is also working with automotive OEMs, including Fiat Chrysler Automobiles, Ford Motor Co., and General Motors Corp., through the U.S. Advanced Battery Consortium LLC. 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. Recently, GM also announced it was using XALT battery systems in an experimental electric drag racer, the eCOPO Chevrolet Camaro concept vehicle.

Freudenberg Sealing Technologies will continue to invest in technologies and materials that help industries achieve lower friction, lighter weight, fewer emissions, longer service life, and safer operating conditions for internal combustion powertrain systems. In addition, it has launched a battery and fuel cell division tasked with developing advanced technology solutions for new mobility scenarios. The investment in XALT Energy will help anchor these new activities, according to Moehlenkamp.

“We continue to see evidence that the entire global mobility landscape—from passenger vehicles, heavy-duty trucks, and buses to railroad transportation and marine shipping operations—is shifting to incorporate new powertrain technologies including lithium-ion batteries and fuel cells,” Moehlenkamp said. “We are committed to supporting this transition through investments like the one we made in XALT Energy, as well as through research and development, technology transfer between our divisions, and rigorous application of quality, testing, and service protocols that provide value to our customers.”