Cleaning and climate management equipment manufacturer Dyson has acquired one of its corporate venturing portfolio companies, US-based solid-state battery technology developer Sakti3, for $90m.
The acquisition, originally reported by Quartz last week before being confirmed by Dyson on Monday, provided exits to investors also including trading conglomerate Iotchu and automotive manufacturer General Motors.
Founded in 2007 as a spinout from University of Michigan, Sakti3 is developing technology for solid-state batteries, which would potentially have greater energy density than the lithium-ion batteries currently used in applications such as smartphones and electric vehicles.
Sakti3 had raised about $50m in venture and grant funding prior to the acquisition, including $15m in March this year from Dyson, which pledged in 2014 to provide up to £1bn ($1.54bn) in funding to startups, as part of a $20m round.
The company raised $11.2m in a 2010 series C round in which GM invested $3.2m and Itochu $1m, before closing the $20m round, which also included GM, Itochu, existing investor Khosla Ventures and Beringea.
Although Sakti3’s technology is still in a relatively early stage, Dyson is acquiring it to support its own battery development plans. Dyson, best known for its vaccuum cleaners and fans, intends to invest up to $1bn in building a large-scale battery production factory, founder James Dyson told USA Today this week.
James Dyson said: “We have invested nearly $310m into the research and development of the Dyson digital motor, a technology that now powers our most successful machines. We will do the same with batteries. Sakti3 has developed a breakthrough in battery technology, and together we will make this technology a reality.”