Industrial giant Dow Chemical (NYSE: DOW) has sold its interest in battery manufacturer Dow Kokam to MBP Investors LLC, an affiliate of Townsend Ventures.
Dow Kokam makes large-format nickel manganese cobalt (NMC) lithium-ion cells and systems for the fleet transportation, stationary storage and industrial markets. The company’s Midland Battery Park in Michigan includes one of the highest capacity Li-ion battery manufacturing plants in the world.
Dow said its decision to shed Dow Kokam fits with its strategy of focusing on the materials portion of the battery value chain, rather than batteries themselves.
“Today’s announcement is another example of Dow’s strategic actions to narrow our market participation,” said CEO Andrew N. Liveris. “We remain committed to delivering competitively advantaged solutions to the battery market through our battery materials business, where our position in the value chain is strategic and margin growth opportunities are clear.”
“Increasing our ownership in Dow Kokam will allow us to bring our market expertise and resources to this business in a way we couldn’t do before,” said Townsend Ventures CEO Dennis Townsend. “The acquisition is a strategic fit with our other battery investments, allowing us to leverage complimentary technologies to position Dow Kokam as a leader in the emerging large-scale energy storage market.”