Oxfordshire silicon anode developer Nexeon has closed a £100m ($133m) investment round in which the National Wealth Fund put in £52.6m ($70m), joined by the Korea Development Bank and Honda Xcelerator Ventures. Valuation was not disclosed.
Nexeon has been working on silicon-based battery materials since 2006, longer than most of the companies now competing for the same cell contracts. Its silicon-carbon anode materials are designed to raise energy density in lithium-ion cells, allowing smaller packs or longer range for the same volume. The company holds more than 290 patents covering cylindrical, prismatic and pouch formats across the United States, Europe, China, South Korea and Japan.
The round, announced on 31 August, is the largest single commitment the National Wealth Fund has made to a UK battery materials business. At £52.6m, the state institution is providing just over half of the £100m total, an unusually large share for a lender that more often sits alongside private capital rather than anchoring a round outright.
The Korea Development Bank reflects Nexeon's operational centre of gravity: its production facility sits in Gunsan, South Korea, and its shareholder register has long leaned towards Korean capital. Honda Xcelerator Ventures is following on. The Japanese carmaker took a strategic stake in Nexeon in May this year, and returns here as a repeat backer rather than a new name.
The proceeds are earmarked for a UK pilot manufacturing facility, further research and development, and an expansion of the company's advanced manufacturing technology unit. Nexeon says the spending will create new skilled jobs in Britain.
The cheque sits on top of an already substantial funding history. In 2022 Nexeon closed more than $200m in total, comprising $170m of direct investment and roughly $50m of commercial commitments. That process ran in two parts: an $80m first close led by SKC and private equity firm SJL in January 2022, followed by a $90m second close in August that year in which Ingevity wrote a $60m cornerstone cheque alongside the GLY Mobility Fund, Daishin Private Equity and Shinhan Investments.
"This investment is a strong endorsement of Nexeon's technology and our role in enabling the next generation of lithium-ion batteries," said chief executive Dr Scott Brown.
National Wealth Fund chief executive Oliver Holbourn framed the deal in supply chain terms: "Backing advanced battery technology is key to building a globally competitive EV supply chain in the UK."
Chancellor John Healey said companies such as Nexeon "show the strength of British innovation", while industry minister Blair McDougall called the round the latest win for Britain's advanced manufacturing sector.
The open question is where the pilot line lands, and whether a UK-built facility can pull volume production back from Gunsan.
Original source: National Wealth Fund — https://www.nationalwealthfund.org.uk/news-and-publications/news/national-wealth-fund-backs-uk-battery-innovator-nexeon-in-100m-investment-round/
