AKASOL receives major manufacturing contract

From 2021 until the end of 2027 the battery manufacturer will supply the third generation of high energy battery systems for various electric vehicles of the global customer. In February 2019, AKASOL expanded the existing framework agreement with the vehicle manufacturer for the delivery of the second-generation battery system in the mid to high triple-digit million-euro range. And as that agreement was deemed a successful cooperation, this contract will extend significantly. "We are proud of the confidence that our long-term customer has once again placed in us to expand our highly successful cooperation and that AKASOL remains supplier for a strategically important e-mobility component for various electric vehicles manufactured by this global player," said Sven Schulz, CEO of AKASOL AG, in a press release. AKASOL already supplies the first generation of the high-performance lithium-ion battery system AKASystem OEM PRC with a storage capacity of 50 kWh to several business units of the customer. It will be followed in 2020 by the second-generation of the AKASystem OEM PRC system with 66 kWh of storage capacity. From 2021, AKASOL will then additionally deliver the third generation of battery systems with very high energy density mainly focusing on range applications. The so-called AKASystem AKM CYC has the same geometrical dimension as the two previous generations but with an increased storage capacity of approximately 100 kWh per pack. The battery systems will be produced at the new headquarters in Darmstadt starting in 2021, and in new AKASOL US-Facility in Detroit, Michigan starting in 2022. "The volume of this new contract increases the total order backlog to approx. EUR 2 billion by 2027. That supports AKASOL's long-term expansion plans as well as advanced investments in organization, infrastructure, and production capacity," says Carsten Bovenschen, CFO of AKASOL AG. The first- and second-generation battery systems are produced at AKASOL's serial production site in Langen/Hesse. The second production line will be installed at this site by the end of the year and thus be ready to start second-generation systems serial production by mid-2020 – six months earlier than scheduled. The third-generation system will be produced at the new headquarters in Darmstadt. According to current plans, the new site will be ready by mid-2020 and serial production is expected to start on time during the second half of 2021. In addition, the second- and third-generation battery systems will also be produced at the new site in Detroit/Michigan, starting in 2022.