Dynavolt Purchases One-Third of Dragonfly Energy
Dynavolt Renewable Power Technology Co. Ltd., a publicly traded Chinese company, invested $2 million to acquire 2 million shares of Series A Preferred Stock in Dragonfly Energy. The investment represents a one-third ownership stake in the company.
Dragonfly Energy started as an R&D company developing manufacturing methods for reducing the cost of energy storage. The company grew to manufacture and market a line of 12-volt deep cycle lithium-ion batteries for RV, marine and off-grid solar applications.
Denis Phares, chief executive officer of Dragonfly Energy, said the company is using the proceeds from the Dynavolt investment to widen its product offerings and accelerate its R&D program. The company currently manufactures and sells batteries for consumer and OEM (original equipment manufacturer) applications, with a focus on serving the marine and RV industries.
Phares said expansion of Dragonfly Energyâ€™s manufacturing capacity marks a major step in the companyâ€™s goal of lowering the costs of lighter, longer-life energy storage options for customers who currently rely on lead-acid batteries. The company relies on patented, environmentally friendly processes that reduce manufacturing costs.
â€œDragonfly Energy is also pleased to announce a strategic partnership with Dynavolt Renewable Energy Co, Ltd. This partnership will allow us to rapidly implement the battery cell manufacturing innovations that we have developed at Dragonfly Energy within Dynavolt's manufacturing lines. And it will accelerate our entrance into the evolving RV, Marine, and off-grid deep cycle battery markets,â€ Phares concluded.
Dynavolt, a leading maker of energy storage products, increasingly expects that lithium-ion and other renewable technology will drive its future growth. Dynavoltâ€™s chairman, Lewu Chen, said that the investment in Dragonfly Energy, which is their first U.S. investment, gives them access to technology that is expected to lower their manufacturing costs.
The founders of Dragonfly Energy â€” Phares, Sean Nichols , David Gong and Evan Humphreys, Justin Ferranto â€” will retain their ownership of the company after the Dynavolt investment.