British battery materials developer Nexeon has secured £100 million in new funding, including £52.6 million from the UK’s National Wealth Fund, to expand its domestic operations and develop a pilot manufacturing facility. Korea Development Bank and Honda Xcelerator Ventures are also participating in the investment round.
The funding will support research and development in the UK, expand Nexeon’s advanced manufacturing technology unit and create skilled jobs. Based in Oxfordshire, the company develops silicon-based anode materials for lithium-ion batteries, which can increase energy density, improve charging performance and potentially extend electric vehicle driving range.
National Wealth Fund Supports UK Pilot Facility
Nexeon said the National Wealth Fund’s financing would help establish a pilot manufacturing facility in the UK while strengthening its existing research and advanced manufacturing capabilities.
“The National Wealth Fund’s financing will support Nexeon’s development of a UK-based pilot manufacturing facility, directly supporting their research and development activities and allowing the expansion of its advanced manufacturing technology unit, creating a number of new highly skilled jobs.”
Oliver Holbourn, chief executive of the National Wealth Fund, said the investment aligns with the fund’s objectives of supporting clean energy innovation and economic development.
“Our investment in Nexeon is fully aligned with our mission to support clean energy innovation and economic growth. Backing advanced battery technology is key to building a globally competitive EV supply chain in the UK, as the thought-leadership paper we recently published identifies. This investment will help unlock private capital, support high-value jobs and drive regional growth, while helping to position the UK at the forefront of innovation in the battery sector.”
The investment adds public financing to Nexeon’s efforts to develop battery materials technology and expand its manufacturing capabilities in the UK.
Silicon Anode Technology Targets Battery Performance
Nexeon develops silicon-based anode materials designed to improve the performance of lithium-ion batteries. Silicon can store more lithium than conventional graphite anodes, offering the potential for higher energy density and faster charging, although performance depends on cell design and material integration.
Nexeon chief executive Dr Scott Brown described the funding as support for the company’s technology and its role in the battery supply chain.
“This investment is a strong endorsement of Nexeon’s technology and our role in enabling the next generation of lithium-ion batteries. The National Wealth Fund’s support reflects the strategic importance of our work, not only in advancing battery performance but also in strengthening the UK’s position in the global battery supply chain.”
UK Pilot Facility Complements South Korean Production
The funding follows Honda’s investment in Nexeon through its Honda Xcelerator Ventures programme in May. That investment was intended to support the commercialisation of Nexeon’s silicon anode technology and the expansion of its production operations in Gunsan, South Korea.
The Gunsan facility is already operational and is designed to manufacture silicon-carbon anode materials at industrial scale. In 2023, Panasonic agreed to use materials produced there in lithium-ion cells manufactured at its battery plant in Kansas, United States.
The planned UK facility will serve a different purpose, focusing on pilot manufacturing alongside research and development. It is intended to support the development and expansion of domestic production capabilities in addition to Nexeon’s established South Korean operations.
The new funding therefore supports Nexeon’s efforts to develop its technology in the UK while building on existing industrial-scale production and commercial relationships in international battery markets.