Project Finance Brief: Spearmint Energy Acquires 150 MW Battery Energy Storage Project

U.S.-based KORE Power, a manufacturer of lithium-ion battery cells, acquired a 4.22% stake in ZEVx, an EV start-up and a provider of EV conversion kits focusing on fleet electrification.

The investment expands KORE Power’s presence in the e-mobility space.

ZEVx manufactures electric powertrain solutions that allow fleet customers to convert existing light-medium duty fleet vehicles to EVs. Formerly known as Zero Electric Vehicles, the company is partnering with KORE Power to develop new vehicle battery efficiency and safety advances.

Fleet vehicles in the U.S. comprise only 3% of all registered vehicles, but fleets are an essential market segment to lead the successful electrification of the entire transportation sector. Large fleet purchases can drive scale, reducing vehicle technology and infrastructure costs.

With transportation now the most significant contributor to greenhouse gas emissions in the United States, the nation needs to rapidly scale the adoption of electric vehicles to align with 1.5oC global climate goals.

“Our joint product development and investment will help ZEVx realize the promise of these innovations at a time when moving to electric vehicles makes so much sense economically and environmentally,” said Lindsay Gorrill, the CEO, and Co-Founder of KORE Power.

Earlier this year, KORE announced a supply agreement with ZEVx to provide KORE battery modules for ZEVx’s electric powertrain kits through 2030.

“We’re proud to be two American companies putting American IP to work here in Arizona to reduce greenhouse gas emissions, increase energy independence, and eliminate barriers to EV adoption, when fleets are electrified, the benefits – from reduced pollution to lower maintenance and fuel costs- reverberate in communities across the nation,” said Carolyn Maury, the CEO of ZEVx.

In March, the company launched its KORE Solutions division post acquiring Northern Reliability, a Vermont-based energy storage solution provider. Later this year, the company plans to start the KOREPlex, a two-million-square-foot manufacturing facility, which will produce up to 12 GWh of lithium-ion battery cells annually. The KOREPlex allows the company to produce a domestic battery supply for e-mobility manufacturers and energy storage projects starting in 2024.

In May 2022, Johnson Matthey (JM), a sustainable technology company, agreed to sell part of its Battery Materials business to EV Metals Group, a battery chemical, and technology provider, for $53 million.

According to Mercom’s Q1 2022 Funding and M&A Report for Storage, Grid, and Efficiency, in Q1 2022, there were five M&A transactions involving Battery Storage companies compared to nine in Q4 2022.