US Ingevity bets on British start-up Nexeon

US specialty chemicals firm Ingevity Corp (NYSE:NGVT) said it has invested USD 60 million (EUR 58.6m) to acquire an equity stake in British technology start-up Nexeon as part of its push to establish a position in the electric vehicle (EV) market.

As part of the investment agreement, the two companies have committed to a joint development of future products involving the use of Ingevity’s activated carbon and intend to enter into a long-term supply agreement, a press release said.

Founded in 2006, Nexeon produces silicon-based materials, which are used in EV battery cells.

The Abingdon, Oxfordshire-based firm in a separate statement on Wednesday announced the second close of its fundraise resulting in a total investment of USD 170 million.

The British firm at the end of January received USD 80 million from a consortium including South Korean chemicals company SKC Co Ltd, with which it also formed a strategic manufacturing partnership.

Nexeon spun out of Imperial College, London and completed a seed funding round in 2006. The company raised GBP 10 million (USD 12.2m/EUR 11.9m) in a Series B funding round in 2009, followed by a GBP-30-million fund-raiser in 2016. In 2019, the British start-up sold a 25% stake to German chemicals giant Wacker Chemie.

(USD 1 = EUR 0.978)

(GBP 1 = USD 1.222/EUR 1.195)

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