By Battery Power Online Staff
August 6, 2024 | Stryten Energy and Dragonfly Energy announced a licensing agreement last week so that Stryten will license Dragonfly Energy’s Battle Born Batteries brand of lithium-ion batteries and the two will work together to create an end-of-life battery collection and recycling program for consumer lithium batteries in the retail aftermarket. The agreement is estimated at potentially more than $30 million.
The agreement grants exclusive licensing rights to Stryten to market and distribute Dragonfly Energy’s Battle Born Batteries globally in most business-to-business markets and provide domestic contract manufacturing of Battle Born Batteries products for sale by Stryten Energy. With both companies eager to foster the relationship, cell manufacturing could be in the future, thereby creating a circular economy for lithium batteries in the U.S.
“The addition of Dragonfly Energy’s Battle Born Batteries into our transportation product portfolio provides our customers access to a well-known brand of quality lithium batteries. With this partnership, Stryten now has a complete lithium battery portfolio to meet our customer needs across multiple industries,” said Mike Judd, CEO and President of Stryten Energy in a press release. “Dragonfly Energy’s mission to produce American-made lithium batteries complements Stryten’s vision to provide our customers access to a domestic supply chain and circular economy for lithium batteries.”
This partnership will focus on military, automotive, marine, power sports, lawn and garden, and golf cart applications, and will answer growing consumer demand for batteries that last multiple seasons, particularly in marine, golf cart, and power sports applications. Stryten will distribute a mix of existing Battle Born Batteries assembled at Dragonfly Energy’s Northern Nevada facility and jointly develop new battery models specifically tailored to Stryten’s target markets.
“At Dragonfly Energy, we’re incredibly proud to see the Battle Born Batteries brand take this leap forward into new end markets,” said Dr. Denis Phares, Chief Executive Officer of Dragonfly Energy, in the same press release. “The love and trust our customers have placed in our products has been humbling, and the potential to see our lithium batteries on shelves at major retailers, alongside other leading brands’ components, not only is a testament to their enduring quality but makes them more accessible to consumers nationwide. We believe that Stryten’s extensive reach and shared commitment to innovation will make this agreement the beginning of a truly mutually beneficial relationship, and we’re confident it will unlock increased growth for both companies.”
The partnership creates a strong footprint for a U.S.-based vertically integrated supply chain and an end-of-life battery collection and recycling program for consumer lithium batteries in the retail aftermarket. Stryten will also provide its customers access to its lithium battery collection and recycling services based on its current sustainable lead battery circular economy model. This will ensure that consumer lithium batteries returned to retail locations are safely collected and either disposed of or recycled, preventing them from ending up in landfills, the company says.
“Stryten Energy is investing in domestic lithium battery assembly to support its next-generation lithium battery production for military, essential power and industrial applications,” added Judd in the statement. “This partnership creates a path for Stryten to incorporate Dragonfly Energy’s future production of lithium battery cells in North America into batteries assembled in our facilities, a critical component to establishing a strong industrial base and achieving our country’s energy independence and sustainability goals.”
Stryten will use the Advanced Manufacturing Production Credits provided in Section 45X of the Internal Revenue Code to accelerate its investment in building its domestic lithium battery assembly production. Stryten plans to source 100% domestically made lithium cells as the U.S. lithium battery supply chain and manufacturing capabilities mature. Production will launch in early 2025 and initially will support Stryten’s military and industrial customers.
