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Auto-component manufacturer Endurance Technologies has agreed to acquire the battery management system (BMS) unit of Mumbai-based energy tech startup ION Energy as it forays into the electric vehicle(EV)-centric product lines. 

Aurangabad-based Endurance will acquire ION’s unit Maxwell Energy Systems for $40 million (Rs 308 crores) in an all-cash transaction, the two companies said in a press release. Maxwell has an active order pipeline of over $19.5 million (Rs 150 crore) from its customers in India and Europe. 

The deal adds BMS, which is essential to monitoring the temperature, state, and safety of lithium-ion batteries in EVs, to Endurance’s portfolio. The first product in its EV-specific range, Maxwell’s BMS gives the auto component-maker an opportunity to expand its customers including Indian automakers, who are considering getting into EV manufacturing.  

“We plan to leverage Maxwell’s deep technical expertise developed over the years and its BMS deployment experience in Indian and European conditions,” said Anurang Jain, Managing Director, Endurance Technologies. 

“We aim to offer our products to multiple new customers, including Indian automotive OEMs (original equipment manufacturers) and battery pack manufacturers,” he added.

For context, OEMs and Battery Makers use BMS to deploy safe, reliable, and smart battery systems for Electric Vehicles and Stationary Energy Storage Systems.

Maxwell already supplies to over 70 automotive OEMs and battery pack Manufacturers spread across 15 countries including India, France, Spain, and the US. It says it has as deployed over 65,000 smart BMS in electric vehicles and stationary storage systems. 

“Maxwell’s business is growing exponentially and large OEMs are relying on us to deliver on their electrification plans. The partnership with Endurance enables us to deliver on our commitments with strength and reliability,” said Akhil Aryan, CEO & Co-Founder of ION Energy. “We will also expand the team and product portfolio to accelerate the global EV transition with a strong focus on India.”

Endurance expects to complete the first tranche of the transaction by the first quarter of the financial year (FY) 2023, with Endurance purchasing a 51 percent stake in Maxwell for $17.5 million. 

It plans to buy the remaining 49 percent in a phased manner by mid-2027, depending on the startup’s financial results. 

After the first tranche, Maxwell will be a subsidiary of Endurance. 

ION Energy will continue to own and operate its software as a service (SaaS) business – Altergo, a predictive analytics platform for new energy assets, the release said.