Electric vehicle (EV) company Tesla is buying Maxwell Technologies to help improve the batteries in its vehicles, according to Reuters.
Maxwell is a solid yet quiet player in the EV industry. It’s recently patented a “dry electrode” system that could increase EV range and reduce battery costs, reports Reuters. The publication also notes that Maxwell inked deals with GM and Lamborghini in the past.
This tech could be critical for Tesla since it’s still struggling to lower the cost of the Model 3 sedan.
In addition to dry electrodes, Maxwell produces ultracapacitors, which are another form of energy storage that discharge energy faster than traditional batteries.
Both of these forms of energy storage technology could help move the EV market forward, and help keep Tesla in the industry’s spotlight as more and more automakers roll out electric vehicles.
Volvo’s parent company Geely Holding Group signed a deal with Maxwell in 2018 to use its ultracapacitors. It uses these to output power from a battery much faster than the battery can on its own, according to WardsAuto.
It will be interesting to see is if Tesla runs Maxwell as an independent subsidiary or if it instead decides to fold the battery maker into one if its existing departments and stop doing business with other automakers.