DLA Piper advises Rosatom subsidiary on acquisition of 49% stake in South Korean battery manufacturer Enertech International

DLA Piper has advised RENERA, a Russian energy storage business owned by Rosatom’s TVEL Fuel Company, on the acquisition of a 49% stake in Enertech International, a South Korean manufacturer of electrodes, lithium-ion storage cells and energy storage systems.

The alliance with its South Korean partner is part of Rosatom’s strategy to invest in non-nuclear businesses and is only a first step towards developing and manufacturing state-of-the art energy storage systems. The signed agreement also envisages the construction of a facility for manufacturing lithium-ion cells and energy storage systems in Russia, with at least a 2 GW⋅h production capacity by 2030. The start of production at the Russian plant is scheduled for 2025. Lithium-ion batteries made in Russia will be used in electric vehicles (trucks, buses and passenger cars), in special equipment and on power grids.

DLA Piper advised RENERA on all aspects of the acquisition, including the structuring of the transaction, legal due diligence, the negotiation of the transaction documentation, regulatory approvals and assistance with the completion of the transaction. The DLA Piper Moscow-based team was led by Corporate partner Steffen Kaufmann who was assisted by legal director Mukhamed Evloev and associate Alexander Mysov. Intellectual Property and Technology counsel Julianna Tabastajewa and Litigation and Regulatory senior associate Azamat Abdulmenov also advised on the transaction.

Partner Steffen Kaufmann said: “This transaction, being the first of its kind in Russia, is a very important milestone in strengthening Rosatom’s energy storage capabilities with the ambitious goal of helping to shape the electric vehicle revolution and to ultimately reduce pollution. We are very proud of having been part of this landmark project.”