Imperial Innovations leads £40M funding round for Nexeon

Imperial Innovations Group plc (AIM: IVO, 'Innovations', or 'the Group'), the UK's leading technology commercialisation and investment company, has led a £40m investment in Nexeon, a battery materials and licensing company which is developing silicon anodes for the next generation of lithium-ion (Li-ion) batteries.

Innovations invested £15.0m with existing Nexeon shareholder Invesco Perpetual also participating. Following this investment, Innovations will hold a 40% (33.5% fully diluted) stake in Nexeon. To date, Nexeon has raised £55m over four funding rounds since formation in 2005.

Nexeon’s unique and patented silicon anode technology increases a battery’s energy density, creating longer lasting batteries for the same size of battery or smaller batteries for the same performance. In December 2010, Nexeon announced it had developed Li-ion cells containing its silicon materials that had the world’s highest capacity for their size.

Currently, Nexeon has the capability to produce 2,500 kg pa at its Abingdon facility. The new funding will be used to scale-up the production of Nexeon’s silicon anode materials to commercial levels and to provide application development and support to customers. The new manufacturing facility is expected to be on stream in 2013. Nexeon has signed Material Evaluation Agreements with a number of leading battery manufacturers.

Li-ion batteries are widely used in consumer electronic applications such as laptops, mobile phones, and tablet computers, and in electric and hybrid vehicles. The global market for Li-ion batteries is currently $10bn, but estimates have suggested that will increase to between $40bn and $60bn over the next decade.

Russ Cummings, Innovations’ Chief Investment Officer, led the fund raising and is on Nexeon’s board, whilst Paul Atherton, a non-executive director of Innovations, is Chairman of Nexeon. Susan Searle, Imperial Innovations’ CEO, said: “This investment is a substantial endorsement of Nexeon’s technology and management team. It is in line with our strategy stated at our recent equity raise to accelerate the development of our advanced portfolio companies, as well as to stay invested in some of them for longer.

This new funding round will enable Nexeon to scale up the business more quickly and support its manufacturing facility in Abingdon – already one of the most advanced worldwide.” Scott Brown, Chief Executive Officer of Nexeon, said: “We are naturally delighted at the support shown by our investors who see the potential of our silicon anode technology and the excellent progress being made by our team.

With the strong financial backing of Innovations and Invesco Perpetual, we are well placed and very much on track to meet our customers’ needs and to achieve our commercial ambitions.”