Keppel acquires stake in EV battery business for US$50 million

U.S. five dollar currency notes bills; taken September 2018.

Keppel Corp. said on Monday its wholly owned subsidiary KepVenture entered a deal with Envision AESC to invest US$50 million for a minority stake in lithium-ion battery company Envision AESC Group.

Envision AESC and Nissan Motor Company hold 80 percent and 20 percent respectively of Japanese holding company Envision AESC Group, Keppel said in a filing to SGX on Monday.

Envison AESC Group recently acquired Automotive Energy Supply Corp. (AESC), a former joint venture between Nissan and NEC Group, and it also acquired NEC Energy Devices, a batter electrode maker from NEC Corp., the filing said.

Loh Chin Hua, CEO of Keppel, said the investment in the EV battery business was part of the company’s strategy to expand its energy offerings to cleaner fuels and renewables.

“We can explore opportunities to apply smart energy storage devices to enhance the safety and carbon efficiency of the Keppel Group’s
solutions for sustainable urbanisation,” Loh said in the statement.

Lei Zhang, CEO of Envision Group and executive chairman of Envision AESC Group, said integrating renewable energy, artificial intelligence, the internet of things (IoT) and battery technology will accelerate the energy transition away from fossil fuels.

Keppel and Envision are developing IoT-enabled storage devices to make smart buildings and smart grids become more energy efficient, the filing said.

“IoT-enabled batteries can help buildings realise cost savings through accurate monitoring and forecasting of energy consumption,” the filing said. “These smart devices can also make grids more efficient by sensing and reporting outages and re-routing power around faults, thereby improving demand flexibility and lowering energy consumption and operating costs.”

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