EXCLUSIVE: Dragonfly Energy Secures $30M Deal With Stryten Energy For Battery Expansion

Dragonfly Energy Holdings Corp DFLI announced a strategic partnership with Stryten Energy, a North American battery manufacturer, to license Dragonfly Energy’s Battle Born Batteries brand of lithium-ion batteries.

The agreement, which could be worth up to $30 million, grants Stryten Energy a license to market and distribute Dragonfly Energy’s Battle Born Batteries globally.

Stryten Energy plans to leverage its vast distributor and customer network to introduce Battle Born Batteries-branded products to new business-to-business (B2B) markets, including military, automotive, marine, power sports, lawn and garden, and golf carts.

Also Read: Dragonfly Energy Sees Early Signs of Recovery and Growth in 2024

Dragonfly Energy and Stryten Energy’s partnership will focus on battery design, contract manufacturing, and licensing Battle Born Batteries products for new B2B end markets where the company does not currently have a presence.

Dragonfly Energy will continue its independent operations in existing markets such as recreational vehicles (RV), off-grid properties, heavy-duty trucking, stationary storage, and oil and gas.

The potential value of the licensing agreement is $30 million, comprised of an upfront payment of $5 million to Dragonfly Energy and subsequent mid-single-digit royalty payments based on Stryten Energy’s product volume using the licensed branding.

A tiered structure can reach up to an additional $25 million, at which point Stryten Energy will be required to pay a nominal annual license fee.

Additional fees will apply for battery design and contract manufacturing services outside of the licensing agreement, and the company expects these to generate additional revenue.

“At Stryten Energy, we’re focused on providing premium energy storage solutions to our customers,” CEO Mike Judd said. “This partnership with Dragonfly Energy will allow us to expand our transportation product portfolio and provide our customers access to the well-known Battle Born Batteries brand of quality lithium batteries.”

Dragonfly Energy will initially contract to manufacture all batteries distributed by Stryten Energy at the company’s facility in Northern Nevada until Stryten Energy establishes its domestic manufacturing footprint. 

This partnership will encompass a mix of existing Battle Born Batteries products, strongly focusing on developing new battery models tailored explicitly to Stryten Energy’s target markets.

Tyler Bourns, chief marketing officer at Dragonfly Energy. “We believe this agreement not only allows us to expand the brand into a wider range of previously untapped markets but also leverages Stryten Energy’s vast retail and distribution customer network to significantly increase our brand awareness.”

Price Action: DFLI shares were trading higher by 10% at $0.92 premarket at the last check on Tuesday.

Photo via Company