Group14 is taking over Schmid Silicon
The US silicon battery material manufacturer Group14 wants to take over the German company Schmid Silicon. The battery specialist is mainly interested in a plant in Saxony in order to secure an important preliminary product. The takeover is said to be only the first step in its upcoming European expansion.
With the acquisition of Schmid Silicon Technology Holding GmbH (or just Schmid Silicon for short), Group14 says it aims to strengthen its global battery supply chain and meet worldwide demand for silicon battery technology. The deal centres on Schmid Silicon’s monosilane plant at the Schwarze Pumpe industrial park in Saxony. As Group14 explains, the acquisition of Schmid Silicon ensures a secure supply of monosilane gas, a key precursor for its SCC55 silicon battery technology.
The operation of the plant is intended to support the “expanding European activities”. The acquisition will allow the company to combine “Schmid Silicon’s proven, ultra-high-purity and low-carbon silane process technology” with Group14’s own commercially proven manufacturing capabilities to deliver high energy density silicon battery materials. Rick Costantino, CTO and co-founder of Group14 Technologies, calls the “acquisition of Schmid Silicon’s highly energy-efficient process technology and factory was a natural step as we continue to meet the dramatic uptick in demand for advanced battery technology while also supporting the European Union’s decarbonization strategies.”
Group14 does not give financial details of the acquisition or regulatory requirements. However, all current employees of Schmid Silicon are to be taken over and integrated into their own company. In addition, training is to be offered “to attract additional employees from the traditional energy sector to clean energy”. Because the need for more workers is great: as soon as the plant is online and ready for operation, Group14 expects the number of employees to increase fivefold.
Group14 currently operates a battery materials plant in Washington State and is currently building a second production facility in Moses Lake, also located in Washington. In addition, a joint venture factory with SK in South Korea is said to be close to commissioning. Once Group14’s monosilane plant is up and running, the company will also have a production site in Europe – albeit not for battery materials. Porsche has also been an investor in Group14 since 2022.
Nevertheless, further subsidiaries are to be established in Europe and the search for locations is ongoing. “Group14 has grown rapidly in critical markets. We are now looking forward to being closer to our automotive customers in Europe to support the global energy transition,” says Rick Luebbe, CEO and co-founder of Group14 Technologies. “Germany has long been home to many of the largest and oldest car manufacturers in the world.”
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