Tesla is acquiring battery technology developer Maxwell Technologies in a deal valued at $218 million. On Monday the deal was announced that Elon Musk might be looking to Maxwell Technology for help to make its batteries better-performing.
The all-stock acquisition values San Diego-based Maxwell at $4.75 a share, or a 55 percent premium over the stock’s Friday closing price of $3.07 a share. Maxwell said it expects the deal to close in the second quarter of the year.
The news comes as a natural progression for San Diego-based Maxwell, which has been in conversations about a potential “strategic partnership” for some time now. The company’s claim to fame is its dry electrode technology, also the basic of ultracapacitors, which can be used to produce electrodes without using solvents. And by integrating this dry electrode tech, EV makers like Tesla stand to reap huge benefits with increased battery performance and reduced prices.
With Tesla acquiring Maxwell, it could very well be the boost for the Model 3 maker needed after a not-so-impressive start to the year. It may even mean a defining edge for the company over its current competitors in the market, including Audi e-Tron SUV, Kia e-Niro, and Hyundai Kona.