In a significant development for the European electric vehicle (EV) battery sector, Slovak battery manufacturer InoBat has successfully raised €100 million (approximately USD 104 million) in its latest funding round. This funding is noted as the largest for a technology company in Slovakia and includes contributions from various investors such as the Slovak sovereign wealth fund, Lilium, Bromo Capital, IPM Group, Cielo Capital, Amara Raja, and Rio Tinto. Notably, Gotion High Tech, InoBat's Chinese partner, also participated in this funding round [d32f5301].
This financial boost comes at a critical time for the European EV battery industry, especially following the recent Chapter 11 bankruptcy filing of Northvolt, which has raised concerns about the stability and future of battery production in the region. In response to these challenges, InoBat plans to ramp up the production of European-designed battery cells and is set to launch an energy storage business in collaboration with Gotion [d32f5301].
The funding announcement aligns with Slovakia's broader ambitions in the EV sector. In June, Slovakia's Economy Minister Denisa Sakova revealed that Gotion and InoBat would invest €1.2 billion to establish an EV battery plant in Slovakia, further solidifying the country's position in the growing battery market [d32f5301].
As the EU seeks to reduce its dependency on Chinese technology and bolster its own battery production capabilities, InoBat's initiatives could play a pivotal role in enhancing local manufacturing and innovation within the cleantech space. The combination of substantial investment and strategic partnerships may help mitigate some of the risks highlighted by Northvolt's recent struggles, positioning InoBat as a key player in Europe's transition to sustainable energy solutions [b476953b].