Arteche invests in flywheel maker Teraloop to join energy storage space

Spanish electrical equipment manufacturer Arteche Lantegi Elkartea SA (BME:ART) announced on Friday that it has entered the energy storage market through a strategic investment in Teraloop Oy, a Finnish company specialising in flywheel-based power management and storage solutions.

The purchase of shares, via investment vehicle Arteche Ventures, will allow the Spanish company to have a permanent seat on Teraloop’s board of directors.

Arteche did not disclose details about the size of the stake or how much money was involved in the deal.

The move will expand the portfolio of Arteche's Grid Reliability business line. Teraloop's flywheel-based storage products, characterised by their bushingless rotor design, are said to be composed of recycled and recyclable mechanical materials and have a lifespan of over 25 years. The technology can be used in grid stabilisation, renewable energy integration, and fast vehicle charging.

Under the deal’s terms, Arteche will be the exclusive distributor of the flywheels under the brand “Arteche powered by Teraloop” in key markets. They will be sold as standalone equipment or as part of Arteche’s capacitor banks, increasing their lifespan by more than 20%, Arteche said.

The distribution of the “Arteche powered by Teraloop” solutions will begin in the first months of 2025.

"With this alliance, Arteche not only reinforces its commitment to power quality and reliability, but also positions itself at the forefront of energy storage, an essential field for the future of electrical infrastructure", said Oscar Fernandez de Retana, Chief Technology Officer of Arteche.

Added Antonio Capristo, CEO of Teraloop: "This strategic alliance with Arteche represents a key milestone in our expansion and consolidation in the European and international market. Having the backing of a global leader like Arteche not only consolidates our innovative technology, but also enables us to accelerate our ability to bring cutting-edge solutions to a wider range of customers.”

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