The National Wealth Fund has invested nearly £53 million in Nexeon, an Oxford-based company that develops silicon-based materials for lithium-ion batteries used in electric vehicles (EVs). Leading a £100 million funding round, the taxpayer-backed fund aims to support Nexeon's expansion of production facilities within the United Kingdom. Additional participants in the round included Korea Development Bank and Honda Xcelerator Ventures, the venture capital arm of the Japanese automaker Honda.
Nexeon's technology focuses on silicon-carbon materials that increase the energy density of lithium-ion batteries. This advancement enables shorter charging times and longer driving ranges for electric vehicles. While the primary application is in EVs, the company’s materials can also enhance batteries in laptops, smartphones, and medical devices. The recent funding will facilitate the development of a pilot manufacturing facility in the UK, expected to bolster both production capacity and research and development efforts.
Founded in 2006 as a spin-out from Imperial College London, Nexeon has grown to establish a significant international presence. The company recently inaugurated the world’s first volume production plant for silicon-carbon battery materials in Gunsan, South Korea, representing a milestone in the commercial scaling of this technology.
John Healey, speaking on the investment, emphasized the importance of supporting domestic businesses with incentives to start, scale, and succeed in the UK. He noted that such backing is essential for sustained economic growth and innovation. David Lamb, Nexeon's chief financial officer, highlighted that the caliber of the company’s commercial prospects is reflected in its ability to attract prominent investors from various regions.
The investment by the National Wealth Fund marks part of a broader push to enhance the UK's position in advanced battery technologies, which are seen as critical to the transition to cleaner transportation and energy systems. With increasing global demand for electric vehicles, the expansion of local manufacturing capabilities aims to reduce dependence on foreign supply chains and stimulate high-tech job creation within the country.