Dragonfly Energy (NASDAQ: DFLI) Gets Foothold Into New Markets Through Massive $30M Licensing Deal With Stryten Energy

August 01, 2024 at 08:45 AM EDT

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By Meg Flippin, Benzinga

Stryten Energy, a leading North American battery manufacturer, and Dragonfly Energy Holdings Corp. (NASDAQ: DFLI), an industry leader in energy storage and manufacturer of lithium-ion batteries, inked what could amount to a significant licensing agreement to use Dragonfly Energy’s Battle Born Batteries® brand in a lineup of lithium battery products for military, automotive, marine, power sports, lawn and garden and golf cart applications.

Stryten Energy, a leading manufacturer of lead-acid batteries with over 2,500 employees and ten North American battery manufacturing plants, is significantly expanding its lithium battery operations through a new agreement with Dragonfly Energy. By integrating Dragonfly Energy's advanced technology, Stryten will offer customers across various industries a more sustainable and longer-lasting power solution.

The deal, which is potentially worth over $30 million in licensing fees alone, is in the early stages of what is expected to be a broader partnership. In the initial stage, Dragonfly will contract manufacture lithium battery models for Stryten and provide custom battery design services tailored to its new market needs. Leveraging Stryten's strong retail relationships, Dragonfly anticipates seeing Battle Born Batteries branded products in major big-box stores. Additionally, the plan is to expand its technical support to accommodate the anticipated surge in customer demand.

Busting Into New Markets

For Dragonfly Energy, the licensing agreement is a game-changer. By partnering with Stryten Energy, the company significantly expands the reach of its Battle Born Batteries brand into new and lucrative markets. This strategic move will expose the Battle Born brand to a vastly wider customer base across industries such as military, automotive, marine, power sports, lawn and garden and golf carts. This increased visibility is expected to bolster brand recognition and solidify Battle Born's position as a leading name in lithium-ion batteries.

Essentially, Stryten becomes a powerful distribution channel for Dragonfly, propelling Battle Born Batteries into the mainstream consumer and commercial markets.

The collaboration aims to create a one-stop shop for battery solutions, catering to the growing demand for long-lasting batteries in consumer markets. Stryten will distribute a combination of existing Battle Born Batteries produced at Dragonfly Energy’s Nevada facility and jointly develop new battery models tailored to specific market segments.

Leading with Sustainability

Beyond market expansion, the partnership focuses on sustainability. Stryten will leverage its existing battery recycling infrastructure to create a closed-loop system for Battle Born Batteries products, ensuring proper disposal or recycling of returned products. Stryten's proven track record in sustainable lead battery recycling will be instrumental in developing a similar circular economy for lithium batteries. This commitment to environmental responsibility not only benefits the planet but also enhances the overall value proposition for customers who can be confident that their used batteries will be handled responsibly.

Just The Beginning?

“Stryten Energy is investing in domestic lithium battery assembly to support its next-generation lithium battery production for military, essential power and industrial applications,” said Mike Judd, CEO and President of Stryten Energy. “This partnership creates a path for Stryten to incorporate Dragonfly Energy’s future production of lithium battery cells in North America into batteries assembled in our facilities, a critical component to establishing a strong industrial base and achieving our country’s energy independence and sustainability goals.” This aligns with the U.S. government’s push for domestic battery manufacturing and energy independence. The two companies are natural partners, given Stryten’s focus on partnering with American-made battery packs. Dragonfly Energy, hailing out of Nevada – the epicenter of lithium mining in the United States – fits that bill.

Dragonfly Energy's patented dry electrode battery manufacturing technology is revolutionizing the industry. A recent third-party assessment revealed that the company's process is not only cost-competitive with China's, even before considering tariffs and incentives like the IRA tax credits, but also significantly more sustainable. By eliminating toxic solvents, reducing energy consumption and producing PFAS-free electrodes, Dragonfly Energy is setting a new standard for environmentally friendly battery production.

Demand Growing For Lithium Batteries

Stryten is the latest high-profile deal Dragonfly Energy has entered into in recent weeks. In early July, it announced that is now providing power solutions to Refreshment Services Pepsi, a privately held independent bottler and distributor for Pepsi-Cola® (NASDAQ: PEP). Dragonfly is providing Refreshment Services Pepsi with lithium-based liftgate power solutions, saving the bottler money and lowering emissions compared to using lead-acid batteries.

The company also hosted an event with Gina Raimondo, the United States Secretary of Commerce, and Nevada Senator Jacky Rosen, during which Rosen announced a $21 million investment in Nevada’s tech hub. The program is one of many around the country focused on scaling the production of critical technologies, including lithium batteries. Dragonfly Energy was selected to host the event because of its technology and was highlighted as an example of the technological innovation happening in Nevada, a key component of the program.

With a strong focus on research and development, Dragonfly Energy is driving initiatives for its patented non-toxic, deep-cycle Lithium Iron Phosphate (LiFePO4) batteries in the United States. The company has a track record of securing over 90 patents, covering various aspects of battery pack design, cell manufacturing, battery communication technology and more. The deal with Stryten Energy underscores that commitment to growth.

The world is moving to a greener future and lithium batteries and companies like Dragonfly Energy are playing an important role in that. With demand poised to increase and with Dragonfly Energy innovating on the lithium battery front, this deal could grow into more as the company continues on its path – and more deals may be coming.

Featured photo courtesy of Dragonfly Energy.

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