Lithium Technology Corporation (LTHUQ)

[Gbathat]

https://www.linkedin.com/company/eas-batteries-gmbh

GAIA Akkumulatorenwerke GmbH (“Gaia”) was set up in 1996 and is one of the leading companies in Germany for the lithium ion technology, specializing in large format cells and batteries. Gaia became known for its ability to deliver high performance customized solutions for a wide range of applications. The company began manufacturing cells and batteries in 2004 for applications that demanded an electrical high-energy or a high-power source.

EAS Germany GmbH (“EAS”) was formed in 2011 via a Joint Venture between Gaia and Enersys/ Hawker GmbH. The company focused on cell production and technology development on very high quality, large cylindrical and high power cells for hybrid electric drive trains, heavy duty industrials and defence applications.

Monbat has acquired 100% of all tangible and intangible assets of both Gaia and EAS and has merged both entities into the EAS Batteries GmbH based in Nordhausen. Monbat will be able to capitalise on the existing experience and expertise in the lithium ion field of both merged entities and will focus on upscaling the existing production capacity and commercializing newly developed cell technologies. This acquisition will bring additional diversification to the Monbat and marks the entry into the lithium ion business which is one of the enabling technologies for the decarbonisation of stationary and mobile energy demands. It further allows a new market presence in the high-power battery systems solutions, based on safe and proven LFP cell chemistry, which is a unique technology approach adopted by only one other big player globally. This technology can address many niche high power applications and meet the very high requirements for reliability and safety, which many applications demand in areas such as aerospace, defence, marine and public transportation.

Monbat is committed to modernise the current premises in Nordhausen, to grow the whole business
and to further expand its sales in Germany and neighbouring countries. It plans to invest over EUR 5
million in the next two years into new and modern machinery as well as to expand the workforce. The
designated Managing Director of EAS Batteries GmbH, Michael Deutmeyer, commented as follows:
“Monbat brings the financial stability and ability to investment in state-of-the-art manufacturing that
EAS needs to become competitive whilst increasing product quality and production capacity. The team
at Nordhausen has over twenty years of manufacturing experience in large-format lithium ion cells
which is unparalleled in Europe. Monbat has a lot of experience working in highly commoditised
markets as well as in mass production of high quality lead acid batteries. Combining these two skill sets
is an ideal basis for executing the new business development plan. The EAS team is immensely grateful
for this new chance as well as the trust shown in its capabilities and is highly motivated to convert the
new investments into commercial success!”

The Chairman and CEO of Monbat, Atanas Bobokov, stated the following: “This acquisition marks the
entry of Monbat into the German market and commitment to a potentially world changing technology.
In the last two years, we have analysed many opportunities for further growth of our group but the
combination of the former Gaia and EAS companies was unique as was the knowledge of the local
team. Monbat will simply do the rights things – we will revitalise and merge these two companies into
one complete business from a technology, production, and sales pipeline point of view. We will grow
the business and develop new products that will be unique quality wise. We will build new state of the
art facilities that will enable us to produce these new products in large quantities for the benefit of all
stakeholders. So, “EAS Batteries” will be a source of power for Monbat too and we are all exciting to
start working!