National Wealth Fund backs UK battery innovator Nexeon in £100m investment round
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Investment will accelerate adoption of Nexeon’s next-generation battery materials which help reduce charging times and extend the range of electric vehicles
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The National Wealth Fund financing supports the expansion of the company’s research, development and manufacturing activities in the UK
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Investment round includes the Korea Development Bank and Honda Xcelerator Ventures
Nexeon Ltd, a leading developer of advanced silicon-based battery materials, today announces it has secured backing from the National Wealth Fund to support the expansion of its domestic operations, strengthening the UK’s battery supply chain, creating jobs and boosting growth. The National Wealth Fund’s commitment of £52.6 million ($70 million) marks the completion of Nexeon’s latest investment round totalling £100 million ($133 million). Other new investors include the Korea Development Bank and Honda Xcelerator Ventures.
Nexeon’s cutting-edge silicon anode materials enable production of higher energy density lithium-ion batteries, helping to reduce charging times and extend the range of electric vehicles.
The investment round supports the company’s continued scale-up and commercialisation activities and marks another key milestone in Nexeon’s pathway to high-volume manufacturing and global customer adoption.
The National Wealth Fund’s financing will support the company’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.
By investing in innovative battery technologies and expanding local manufacturing capacity, the Fund’s investment is helping to decarbonise supply chains, boost place-based investment, and strengthen sovereign capabilities — supporting all three of the National Wealth Fund’s strategic ambitions.
Honda Xcelerator Ventures is the global open innovation program of the Honda Motor Co. Ltd., and invests in technologies shaping the future of mobility and electrification. The Korea Development Bank is a leading policy bank in South Korea, focused on supporting industrial innovation and global expansion of Korean-linked manufacturing ecosystems. This investment underscores the strategic importance of Nexeon’s technology within the global battery supply chain.
Chancellor of the Exchequer John Healey MP said: "Companies like Nexeon show the strength of British innovation. And if we are serious about growth, we must be serious about backing British businesses like this with conditions for them to start, scale and succeed here in the UK, as the National Wealth Fund are doing here.
“That’s how we’ll get good growth and jobs in every postcode.”
Oliver Holbourn CEO of the National Wealth Fund said: “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.”
Commenting on the investment, Dr Scott Brown, CEO of Nexeon, said: “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.”
David Lamb, CFO at Nexeon added: “We continue to strengthen our shareholder register with the addition of the Korea Development Bank, Honda and the National Wealth Fund. The quality of the Nexeon commercial proposition is reflected in the quality of investors we continue to attract.”
Industry Minister Blair McDougall said: “This investment into Nexeon is the latest win for Britain’s world-class advanced manufacturing sector, which will support skilled local jobs and keep our battery industry at the cutting edge of research and innovation.
“Hot on the heels of a £130 million investment into net zero vehicle technologies, our Modern Industrial Strategy is doubling down on frontier industries like batteries to help businesses like Nexeon grow their business, create skilled jobs and drive good growth right across the UK.”
The partnership underscores a shared commitment to delivering positive impact — economically, environmentally, and socially — while supporting the scale-up of breakthrough technologies that will shape the future of energy storage.
Nexeon recently brought online the first volume production facility globally for silicon-carbon materials dedicated to enhancing lithium-ion battery performance in Gunsan, South Korea.
Today’s announcement follows the co-publication of a paper by the National Wealth Fund and Clean Technology Partnership Initiative (CTPI) which assesses the UK battery market in the context of global trends and spotlights the greatest opportunities and challenges. The paper concludes that a twin track approach - debt and guarantees to anchor large supply chain investment, and equity to scale UK advanced tech firms – are essential to develop UK strengths and increase economic resilience. This investment is an example of this approach being put into action.
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