(Alliance News) - Energy Spa announced Tuesday that it has signed a major strategic agreement to establish a corporate joint venture with Pylon Technologies Europe Holding BV, a Dutch-registered wholly owned subsidiary of Pylon Technologies Co. Ltd.

Pylon Technologies is listed on the Shanghai Stock Exchange and has a capitalization of about CNY46 billion, or about USD6.6 billion, and is among the World's leading manufacturers of stationary cyclic lithium batteries for energy storage from renewable sources.

"The two companies have been collaborating for 10 years and both have been focusing on lithium-iron-phosphate - cobalt-free - technology as true pioneers from the very beginning, which is increasingly becoming the technology of choice due to its safer and more sustainable characteristics compared to other lithium battery technologies," Energy explained.

The purpose of the joint venture is to strengthen the joint business in the European territory through a newly established company, owned by both companies, for the production and marketing of lithium batteries in Europe. The JV will be a company under Italian law, with headquarters and production in a dedicated area, at Energy's site in Sant'Angelo di Piove di Sacco, where the company has an area of more than 20,000 square meters available for its activities.

Pylontech EU will hold a 70% stake in the JV while Energy will hold a 30% stake; the initial investment will be EUR10 million, of which EUR7 million will be borne by Pylontech EU and EUR3 million by Energy. The agreement stipulates that strategic and extraordinary decisions will be decided unanimously.

Governance will be entrusted to a three-member board of directors, two of whom will be appointed by nomination of Pylontech EU and one with the role of managing director by nomination of Energy.

The JV constitutes the sole European operational base of Pylon Technologies, which develops most of its business right in Europe, and for which Energy represents one of the most important commercial and technological partners.

Energy CEO Davide Tinazzi commented, "With enormous satisfaction, we inform all stakeholders of the signing of the joint venture agreement for the production and commercialization of Made in Italy lithium batteries with cobalt-free technology. This agreement represents an important pillar in the implementation of the growth strategy communicated at the IPO. We are experiencing an extraordinary economic momentum and we are convinced that the strengthening of the partnership with Pylontech will allow us to seize opportunities in the European and US markets, where Energy is already present."

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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