German chemicals giant BASF made a $50 million equity investment in Tucson-based Sion Power Corp. to get a jump on next-generation battery technology.
The percentage of BASF's ownership stake in privately held Sion, a developer of advanced lithium-sulfur batteries, was not disclosed in Friday's announcement. A Sion spokesman said no further information would be released.
The equity partnership expands on an existing joint development agreement that BASF Future Business GmbH established with Sion Power in 2009. That partnership is aimed at boosting the commercialization of Sion's proprietary lithium-sulfur battery technology for electric vehicles and other high-energy applications over the next decade, the company said.
"The progress of the technical collaboration between Sion Power and BASF for more than two years now has led BASF to take a significant financial stake in Sion," said Sion CEO Dennis Mangino in a news release.
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Sion has more than 100 U.S. and international patents on its lithium-sulfur technology, which offers lighter weight and higher energy capacity than other technologies. The company was founded as Moltech Corp. in 1994.
BASF - the world's biggest chemical company with more than $80 billion in sales in 2010 - recently created a battery-materials division. The company also has announced it will invest upward of 100 million euros (about $130 million) developing and producing advanced battery materials through 2016.
Advanced cathodes, anodes and other battery materials are key technologies for battery performance, said Ralf Meixner, BASF's senior vice president for battery materials.
"Through our investment and collaboration with Sion, we are positioned to take a leadership role in developing next-generation battery material solutions, further supporting the effort to make electric cars affordable, environmentally friendly and sustainable," Meixner said.
The company is spending about $50 million to expand an existing BASF chemical plant in Elyria, Ohio, to make materials for advanced lithium-ion electric-car batteries, with the help of a $24.6 million federal stimulus grant.
Contact Assistant Business Editor David Wichner at dwichner@azstarnet.com or 573-4181.