REG - Gelion PLC - Acq. of Johnson Matthey’s battery IP portfolio

GelionAnnouncement

09/03/2023 07:00

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RNS Number : 3656S  Gelion PLC  09 March 2023

9 March 2023

Gelion plc

("Gelion" or the "Company")

 

Strategic acquisition of Johnson Matthey's battery materials IP portfolio

Significantly strengthens Gelion's position in the LiSiS market to create a
sustainable future through next-generation energy storage solutions

Gelion (AIM: GELN), the Anglo-Australian battery innovator, is pleased to
announce the acquisition of the Lithium Sulfur and Silicon Anode ("LiSiS")
patent portfolio (the "IP") (including solid and liquid electrolytes,
disordered rock salt, electrode formulation and battery materials recycling)
from Johnson Matthey for a consideration of £4.25 million payable in cash and
will be funded from the Company's available resources.

 

Highlights

 

 ·                 This highly valuable next generation Battery Materials LiSiS patent portfolio
                   from Johnson Matthey, following their decision to exit this business segment,
                   has been developed, cumulatively over a decade, by leading scientists in the
                   field. This acquisition is of significant strategic importance to Gelion and
                   has the potential to significantly advance our effort to achieve higher
                   gravimetric energy density while reducing cost and increasing safety.
 ·                 The IP portfolio includes over 450 patents across 82 patent families as well
                   as development programs, technology transfer packages, market and portfolio
                   analyses, manufacturing design and cost models for our LiSiS technology.
 ·                 The combination of Gelion's existing IP portfolio and the new IP portfolio has
                   the potential to:

 

 -            resolve the issue of sulfur management which is a critical issue for Lithium
              Sulfur batteries;
 -            eliminate the reliance on the maturity of Lithium Metal anodes as the Lithium
              Sulfur cathodes developed by Gelion are compatible with graphitic, silicon,
              and lithium metal anodes; and
 -            allow for the Lithium Sulfur technology to be commercialized rapidly.

 

 ·                 Gelion is in advanced discussions to sell a subset of patents (73 patents
                   across 17 patent families) relating to silicon anodes which are not essential
                   to the Company's activities with a third party for c. £1.25 million. This is
                   in line with Gelion's focus on sulfur cathodes and associated electrolyte
                   technology. Should this sale be successful, the net cash outlay of the
                   acquisition of the remaining IP to Gelion would be reduced to c.£3 million.
 ·                 With this intellectual property acquisition, the board is confident that it
                   will significantly strengthen Gelion's position to meet the growing demand for
                   sustainable and efficient energy solutions.

 

Commenting on the IP acquisition, John Wood, CEO, said: "The acquisition of
this highly valuable IP portfolio strengthens our own Lithium Silicon Sulfur
technology and gives us a broad horizon to be able to mature the technology
toward scaled production at a faster rate. It also positions Gelion at the
forefront of the global battery technology effort for the next generation of
safe, high energy density Lithium batteries.

 

"We are very enthusiastic about the unique path, we are developing towards
high performance Lithium Sulfur technologies. This IP portfolio will help in
our objectives toward achieving a protective moat for Gelion's technology.

 

Lithium Sulfur is widely anticipated as the next stage of the Lithium energy
storage industry and through combining the leading IP portfolio, in the most
promising Lithium battery technology segment, with our breakthrough technology
development, we believe we have established a very exciting opportunity."

 

Acquisition of highly valuable IP portfolio acquisition from Johnson Matthey

 

Gelion has acquired Johnson Matthey's entire Lithium Sulfur and Silicon Anode
patent portfolio which includes over 450 patents across 82 patent families, as
well as silicon alloy development program, technology transfer packages,
market and portfolio analysis, and manufacturing design and cost models. With
the Group's focus on Sulfur cathodes, Gelion is in advanced discussions to the
sale of the 73 patents and applications relating to silicon anode to a third
party. Should the sale be successful, this would result in a net cash outflow
of c. £3m which will be settled from the Company's existing resources.

 

The IP acquired is a very valuable portfolio that covers various essential
aspects of Lithium Sulfur technologies. However, we recognize that one
significant challenge in this field is sulfur management, which if left
unaddressed, can lead to batteries with limited cycle life and reduced
commercial feasibility. We are confident that our existing IP portfolio, which
offers a cutting-edge solution for this issue, will complement, and enhance
the newly acquired portfolio. By combining the strengths of both portfolios,
we can offer a clear pathway to a commercially viable product, providing us
with a crucial strategic advantage in a highly competitive market.

 

This combined portfolio will allow Gelion to establish a strong and resilient
IP portfolio, which will provide effective protection to retain a strategic
advantage over competitors in the same space. The consolidation of both
portfolios in conjunction with Gelion's unique development strategy, will
facilitate the rapid acceleration in technology development and provides a
strategic path to commercialisation that eliminates any reliance on
advancements required to develop mature lithium metal anodes. Gelion will
develop Lithium-Sulfur cathodes that are compatible with a range of anode
technologies, including graphitic and silicon, which will be expediated by
this acquisition.

 

Gelion's Performance Additives division is developing sulfur cathodes which,
when paired with existing silicon anode technologies, improves overall
Lithium-ion battery safety, energy density and cost, which are key drivers in
establishing the competitive differentiation for many upstream products. This
presents a compelling commercial proposition for a range of markets including
electric vehicles, e-aviation and drones. The combination of this substantial
IP portfolio with Gelion's Lithium Sulfur and LiSiS development program
supports Gelion's progress and gives the Company freedom to operate with a
protective moat around the solutions it intends to develop. In particular,
this acquisition gives the Company the opportunity to significantly advance
its efforts to achieve this higher gravimetric energy density while reducing
cost without using rare and expensive metals and increasing safety.

 

Lithium Sulfur is expected to be the next generation battery technology due to
its significantly high energy densities than Lithium-ion technology, and the
absence of transition metals 1  (#_ftn1) . This IP portfolio provides a unique
opportunity for Gelion to position its research effort at the forefront of the
battery market. Gelion will progress through the Technical Readiness Level
(TRL) stages to establish paths to scaled production.

 

The acquired portfolio is complementary to Gelion's own IP providing Sulfur
management solutions. It will give Gelion a strategic advantage in this
competitive space. The acquisition of one of the largest portfolios in the
Lithium Sulfur space significantly strengthens Gelion's overall offering in
the LiSiS market, enhances the Group's existing IP portfolio and assists in
achieving the Group's aim of creating a sustainable future through
next-generation energy storage solutions.

 

 

CONTACTS

 

 Gelion plc                                                    via Alma PR

 John Wood, CEO

 Amit Gupta, CFO

 Thomas Maschmeyer, Founder and Principal Technology Advisor

 finnCap Ltd (Nominated Adviser and Sole Broker)               +44 207 220 0500
 Corporate Finance

 Christopher Raggett

 Seamus Fricker

 Fergus Sullivan

 ECM

 Barney Hayward

 Alma PR (Financial PR Adviser)                                +44 20 3405 0205

 Justine James                                                 gelion@almapr.co.uk

 Hannah Campbell

 Will Ellis Hancock

 

About Gelion plc

 

Gelion ("gel: ion") is a global renewable-energy storage innovator who
supports the transition to a sustainable economy while delivering value for
its customers and investors by designing and manufacturing the outstanding
zinc-bromide batteries for stationary energy storage and additives for mobile
battery applications.

 

Performance Additives - Tomorrow's transport systems will rely on mobile
renewable energy.  Gelion is developing performance additives with the aim of
improving the safety, longevity and energy density of lithium-based batteries
for mobile applications. Using nanotechnology, Gelion's Lithium-Silicon-Sulfur
additives will help power the EV and e-aviation markets.

 

Stationary storage - Gelion Zinc Bromide battery: the sustainable energy
storage solution.

Gelion has developed patented technology for a breakthrough zinc-bromide
battery to support the transition to a carbon neutral economy by 2050. The
technology is being developed with the goal of establishing Gelion Zinc
Bromide as a logical participant in the ecosystem of suppliers, manufacturers
and customers surrounding lead acid technology.

 

Gelion's zinc-bromide gel battery uses non-flow technology, which is scalable,
can deliver 100% depth of discharge and has potential for higher temperature
tolerance and longer duration discharge than lead-acid batteries.

 

Gelion was spun-out from the University of Sydney in 2015 by Professor Thomas
Maschmeyer, Fellow of the Australian Academy of Science and recipient of the
Australian Prime Minister's Prize for Innovation 2020, that country's highest
honour for scientific entrepreneurship.

 

The Company's ESG credentials are strongly aligned to six of the UN's 17
Sustainable Development Goals.

 

Gelion's shares are listed on the AIM market of the London Stock Exchange and
it received the Green Economy Mark at IPO in November 2021 recognising its
commitment to energy transition.

 

 1  (#_ftnref1)
https://www.sciencedirect.com/topics/engineering/lithium-sulfur-batteries

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