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.”