Dragonfly Energy Enters into $30M Licensing Agreement for Battle Born Batteries Brand with Stryten Energy, a Leading North American Battery Manufacturer
Dragonfly Energy (Nasdaq: DFLI) has entered into a $30 million licensing agreement with Stryten Energy for its Battle Born Batteries® brand. The deal grants Stryten exclusive rights to market and distribute Battle Born Batteries in new B2B markets, including military, automotive, marine, power sports, lawn and garden, and golf cart applications.
The agreement includes an initial $5 million licensing fee and potential mid-single digit royalty payments up to an additional $25 million. Dragonfly Energy will continue its operations in existing markets such as RV, off-grid properties, and stationary storage. The partnership aims to expand brand awareness and market reach while offering Stryten's customers reliable lithium-based power solutions.
Dragonfly Energy (Nasdaq: DFLI) ha stipulato un accordo di licenza da 30 milioni di dollari con Stryten Energy per il suo marchio Battle Born Batteries®. L'accordo concede a Stryten diritti esclusivi per commercializzare e distribuire le batterie Battle Born in nuovi mercati B2B, tra cui applicazioni militari, automotive, marine, sport motoristici, giardinaggio e carrelli da golf.
L'accordo include un canone di licenza iniziale di 5 milioni di dollari e potenziali pagamenti di royalty a medio singolo indice fino a un ulteriore 25 milioni di dollari. Dragonfly Energy continuerà le sue operazioni nei mercati esistenti come RV, proprietà fuori rete e stoccaggio stazionario. La partnership mira ad espandere la consapevolezza del marchio e la portata di mercato, offrendo ai clienti di Stryten soluzioni energetiche affidabili a base di litio.
Dragonfly Energy (Nasdaq: DFLI) ha firmado un acuerdo de licencia de 30 millones de dólares con Stryten Energy para su marca Battle Born Batteries®. Este acuerdo otorga a Stryten derechos exclusivos para comercializar y distribuir las baterías Battle Born en nuevos mercados B2B, incluyendo aplicaciones militares, automotrices, marinas, deportes de potencia, jardinería y carritos de golf.
El acuerdo incluye una tarifa de licencia inicial de 5 millones de dólares y potenciales pagos de regalías de un solo dígito medio que podrían alcanzar hasta 25 millones de dólares adicionales. Dragonfly Energy continuará sus operaciones en mercados existentes como vehículos recreativos, propiedades off-grid y almacenamiento estacionario. La asociación tiene como objetivo ampliar el reconocimiento de la marca y el alcance del mercado, al tiempo que ofrece a los clientes de Stryten soluciones de energía confiables basadas en litio.
드래곤플라이 에너지 (Nasdaq: DFLI)는 스트라이튼 에너지와 3000만 달러의 라이센스 계약을 체결하였습니다. 이 계약은 스트라이튼에게 Battle Born Batteries® 브랜드의 배터리를 신규 B2B 시장에서 마케팅 및 유통할 수 있는 독점 권한을 부여합니다. 여기에는 군사, 자동차, 해양, 파워 스포츠, 조경 및 골프 카트 응용 프로그램이 포함됩니다.
계약에는 초기 500만 달러의 라이센스 요금이 포함되며, 추가로 중간 단일 숫자 비율의 로열티 지급이 최대 2500만 달러까지 가능합니다. 드래곤플라이 에너지는 RV, 오프그리드 자산 및 고정 저장소와 같은 기존 시장에서 운영을 계속할 것입니다. 이 파트너십은 브랜드 인지도와 시장 범위를 확장하는 동시에 스트라이튼 고객에게 신뢰할 수 있는 리튬 기반 전력 솔루션을 제공하는 것을 목표로 합니다.
Dragonfly Energy (Nasdaq: DFLI) a signé un accord de licence de 30 millions de dollars avec Stryten Energy pour sa marque Battle Born Batteries®. Cet accord accorde à Stryten des droits exclusifs pour commercialiser et distribuer les batteries Battle Born sur de nouveaux marchés B2B, y compris des applications militaires, automobiles, maritimes, de sports motorisés, de jardinage et de chariots de golf.
L'accord comprend un frais de licence initial de 5 millions de dollars et des paiements de royalties à un chiffre moyen pouvant aller jusqu'à 25 millions de dollars supplémentaires. Dragonfly Energy continuera ses opérations sur des marchés existants tels que les camping-cars, les propriétés hors réseau et le stockage fixe. Le partenariat vise à accroître la notoriété de la marque et l'ampleur du marché tout en offrant aux clients de Stryten des solutions énergétiques fiables à base de lithium.
Dragonfly Energy (Nasdaq: DFLI) hat einen Lizenzvertrag über 30 Millionen Dollar mit Stryten Energy für seine Marke Battle Born Batteries® abgeschlossen. Der Vertrag gewährt Stryten exklusive Rechte zum Vermarkten und Vertreiben von Battle Born Batterien in neuen B2B-Märkten, einschließlich Militär, Automobil, Marine, Kraftsport, Gartenbau und Golfwagenanwendungen.
Der Vertrag umfasst eine anfängliche Lizenzgebühr von 5 Millionen Dollar und potenzielle Royalties im mittleren einstelligen Bereich bis zu weiteren 25 Millionen Dollar. Dragonfly Energy wird seine Aktivitäten in bestehenden Märkten wie Wohnmobilen, Off-Grid-Immobilien und stationären Speicherlösungen fortsetzen. Die Partnerschaft zielt darauf ab, das Markenbewusstsein und die Marktreichweite zu erweitern und den Kunden von Stryten zuverlässige lithiumbasierte Energielösungen anzubieten.
- Potential $30 million revenue from licensing agreement
- Expansion into new B2B markets through Stryten Energy's distribution network
- Immediate $5 million upfront payment
- Potential for additional revenue from battery design and contract manufacturing services
- Increased brand awareness and market reach for Battle Born Batteries
- Potential competition in new markets may impact existing business
- Dependence on Stryten Energy's performance for royalty payments
- Possible brand dilution if quality control is not maintained in new markets
The $30 million licensing agreement between Dragonfly Energy and Stryten Energy represents a significant business development for Dragonfly. This deal structure, with an upfront payment of
Importantly, this agreement allows Dragonfly to monetize its brand in new B2B sectors without cannibalizing its existing markets. The partnership with Stryten, a major player in energy storage solutions, opens doors to military, automotive and other lucrative sectors. This diversification could significantly reduce Dragonfly's market risk and potentially smooth out revenue fluctuations.
From a financial perspective, the contract manufacturing arrangement until Stryten establishes its own production capabilities could provide an additional revenue boost for Dragonfly in the short to medium term. However, investors should monitor the transition of manufacturing to Stryten, as it may impact Dragonfly's future revenues.
Overall, this deal appears to be a strategic move that could accelerate Dragonfly's growth and market penetration without significant capital expenditure, potentially improving its financial position and shareholder value.
This licensing agreement signifies a major shift in Dragonfly Energy's market strategy. By partnering with Stryten Energy, Dragonfly is effectively expanding its reach into new B2B markets including military, automotive, marine, power sports, lawn & garden and golf carts. This diversification could substantially increase the total addressable market for Battle Born Batteries.
Stryten Energy's extensive distributor and customer network, including automotive aftermarket retailers and battery distributors, provides a robust channel for market penetration. This could lead to increased brand visibility and consumer accessibility for Battle Born Batteries, potentially accelerating market share growth.
The focus on developing new battery models tailored to Stryten's target markets suggests a product diversification strategy that could enhance the brand's appeal across various industries. This adaptability could be important in capturing market share in competitive sectors like automotive and marine applications.
However, it's important to note that success in these new markets isn't guaranteed. Factors such as competition, regulatory requirements and market-specific demands will play important roles. Investors should closely monitor Stryten's performance in introducing Battle Born Batteries to these new sectors, as it will be a key indicator of the agreement's long-term value.
This licensing agreement represents a significant technological opportunity for both Dragonfly Energy and Stryten Energy. The collaboration allows for the expansion of lithium-ion battery technology into new applications, potentially accelerating the adoption of this more efficient and environmentally friendly energy storage solution in various industries.
The partnership's focus on developing new battery models for Stryten's target markets is particularly intriguing. This could lead to innovative designs tailored for specific applications like military or automotive use, potentially pushing the boundaries of lithium-ion battery technology. The combination of Dragonfly's expertise in lithium-ion batteries and Stryten's experience in diverse energy storage solutions could result in breakthrough products that address unique market needs.
From a manufacturing perspective, the initial arrangement for Dragonfly to contract manufacture the batteries ensures quality control and consistency. However, the planned transition to Stryten's own domestic manufacturing will be a critical phase to watch. It will require careful technology transfer and quality assurance processes to maintain the Battle Born Batteries' reputation for reliability.
The commitment to ongoing technical support from Dragonfly is important for maintaining product quality and customer satisfaction as the brand expands into new markets. This continued involvement could also facilitate further technological advancements and refinements based on real-world application feedback from diverse sectors.
Agreement to allow for expansion of Battle Born Batteries® products into new markets
- Dragonfly Energy signs a
$30 million agreement to license its popular lithium-ion battery brand, Battle Born Batteries®, to Stryten Energy for distribution globally - Stryten Energy will have exclusive rights to market and distribute Battle Born Batteries for military, automotive, marine, power sports, lawn and garden and golf cart applications. All B2B end markets Dragonfly Energy doesn’t currently have a presence in.
- This 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.
- Dragonfly Energy will receive an initial licensing fee of
$5 million and have the right to mid-single digit royalty payments for up to an additional$25 million .
RENO, Nev., July 30, 2024 (GLOBE NEWSWIRE) -- Dragonfly Energy Holdings Corp. ("Dragonfly Energy" or the "Company") (Nasdaq: DFLI), an industry leader in energy storage and manufacturer of lithium-ion batteries, today announced a strategic partnership with Stryten Energy, a leading 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
"At Dragonfly Energy, we're incredibly proud to see the Battle Born Batteries brand take this leap forward into new end markets," said Dr. Denis Phares, chief executive officer 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 recreational vehicles (RV), off-grid properties, heavy-duty trucking, stationary storage, and oil and gas. The potential value of the licensing agreement is
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 business-to-business 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, chief executive officer 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. This 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. This approach will allow Stryten to leverage the proven performance of Battle Born Batteries while offering unique solutions to its diverse customer base. Dragonfly Energy remains committed to providing exceptional technical support for all Battle Born Batteries products and will continue to grow their support team along with increasing demand.
"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.
About Dragonfly Energy
Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) is a comprehensive lithium battery technology company, specializing in cell manufacturing, battery pack assembly, and full system integration. Through its renowned Battle Born Batteries® brand, Dragonfly Energy has established itself as a frontrunner in the lithium battery industry, with hundreds of thousands of reliable battery packs deployed in the field through top-tier OEMs and a diverse retail customer base. At the forefront of domestic lithium battery cell production, Dragonfly Energy's patented dry electrode manufacturing process can deliver chemistry-agnostic power solutions for a broad spectrum of applications, including energy storage systems, electric vehicles, and consumer electronics. The Company's overarching mission is the future deployment of its proprietary, nonflammable, all-solid-state battery cells.
To learn more about Dragonfly Energy and its commitment to clean energy advancements, visit www.dragonflyenergy.com/investors.
About Stryten Energy
Stryten Energy helps solve the world’s most pressing energy challenges with a broad range of energy storage solutions across the Essential Power, Motive Power, Transportation, Military and Government sectors. Headquartered in Alpharetta, Georgia, we partner with some of the world’s most recognized companies to meet the growing demand for reliable and sustainable energy storage capacity. Stryten powers everything from submarines to subcompacts, microgrids, warehouses, distribution centers, cars, trains and trucks. Our stored energy technologies include advanced lead, lithium and vanadium redox flow batteries, intelligent chargers and energy performance management software that keep people on the move and supply chains running. An industry leader backed by more than a century of expertise, Stryten has The Energy to Challenge the status quo and deliver top-performing energy solutions for today and tomorrow. Learn more at stryten.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical statements of fact and statements regarding the Company's intent, belief, or expectations, including, but not limited to, statements regarding its partnership with Stryten Energy and the potential value of the license agreement, the Company's future results of operations and financial position, planned products and services, business strategy and plans, market size and growth opportunities, competitive position and technological and market trends. Some of these forward-looking statements can be identified by the use of forward-looking words, including "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," "plan," "targets," "projects," "could," "would," "continue," "forecast" or the negatives of these terms or variations of them or similar expressions.
These forward-looking statements are subject to risks, uncertainties, and other factors (some of which are beyond the Company's control) which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Such factors include those set forth in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and in the Company's subsequent filings with the SEC available at www.sec.gov. If any of these risks materialize or any of the Company's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that it currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements contained in this press release speak only as of the date they were made. Except to the extent required by law, the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
Investor Relations
Caldwell Bailey
ICR, Inc.
DragonflyIR@icrinc.com
Media Relations
Amy Demuth, RAD Strategies Inc.
dragonfly@radstrategiesinc.com
Media Resources
Click to download b-roll video of Dragonfly Energy
Click to download photos to accompany this release
Source: Dragonfly Energy Holdings Corp.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/03fbe138-674c-4a2d-af89-baef2a9780f3
FAQ
What is the value of the licensing agreement between Dragonfly Energy and Stryten Energy?
Which new markets will Battle Born Batteries expand into through this agreement?
How will Dragonfly Energy (DFLI) benefit from this licensing agreement?
Will Dragonfly Energy (DFLI) continue to operate in its existing markets after this agreement?
