Dragonfly Energy Holdings Corp. announced a strategic partnership with Stryten Energy, a North American battery manufacturer, for the licensing of the Dragonfly Energy’s Battle Born Batteries brand of lithium-ion batteries.
The agreement, with a potential value of up to $30 million, grants Stryten Energy a license to market and distribute 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.
“At Dragonfly Energy, we’re incredibly proud to see the Battle Born Batteries brand take this leap forward into new end markets,” said Denis Phares, CEO of Dragonfly Energy. “The love and trust our customers have placed in our products has been humbling, and the potential to see our lithium batteries on shelves at major retailers, alongside other leading brands’ components, not only is a testament to their enduring quality but makes them more accessible to consumers nationwide. We believe that Stryten Energy’s extensive reach and shared commitment to innovation will make this agreement the beginning of a truly mutually beneficial relationship, and we’re confident it will unlock increased growth for both companies.”
The partnership between Dragonfly Energy and Stryten Energy will focus on battery design, contract manufacturing and licensing of Battle Born Batteries products for new B2B end markets where the company does not currently have a presence in. Dragonfly Energy will continue its independent operations in existing markets such as 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, with a tiered structure reaching 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 are expected to provide additional revenue to the company.
Stryten Energy is a leading U.S.-based manufacturer of energy storage solutions, providing advanced lead, lithium and vanadium batteries to customers across the transportation, industrial, military and government sectors. With a workforce of over 2,500 employees and ten manufacturing plants, Stryten Energy is a respected supplier in the energy storage market. Through a nationwide customer base of automotive aftermarket retailers and battery distributors, this exclusive B2B licensing deal is poised to expand brand awareness and market reach of Battle Born Batteries while offering Stryten Energy’s customers reliable, trusted and powerful lithium-based power solutions.
“At Stryten Energy, we’re focused on providing premium energy storage solutions to our customers,” said Mike Judd, CEO of Stryten Energy. “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. We’re excited about the market potential this collaboration holds and look forward to continuing to explore future opportunities as we grow our relationship with Dragonfly Energy.”
To ensure the same high level of quality customers expect from the Battle Born Batteries brand, Dragonfly Energy will initially contract manufacture all batteries distributed by Stryten Energy at the company’s facility in northern Nevada until Stryten Energy establishes its own domestic manufacturing footprint.
The partnership will encompass a mix of existing Battle Born Batteries products, with a strong focus on the development of new battery models specifically tailored to Stryten Energy’s target markets.
“The impact of this partnership with Stryten Energy for the wider proliferation of the Battle Born Batteries brand cannot be understated,” said 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. We believe this is a major step forward in our mission to make Battle Born Batteries a household name across North America.”
For more information about Dragonfly Energy, visit DragonflyEnergy.com. To learn more about Stryten Energy, visit Stryten.com.