Fusion developer TAE Technologies has spun off its power management division, the company told Axios,
Why it matters: The move allows the parent company to focus on its fusion while the new entity focuses on its battery technology for vehicles and renewable energy storage facilities.
what happened: Privately run TAE Technologies said it has created TAE Power Solutions, a wholly-owned subsidiary aimed at improving renewable battery life, as it said.
- As part of the spin-off, TAE Power Solutions made two acquisitions: the company acquired UK vehicle electrification supplier Sprint Power and UK energy storage and distribution systems manufacturer Eltrium.
- Kedar Munipella, a former senior executive at Applied Materials, is now CEO of the new company.
What are they saying: “We’re solving the same problem in both markets: where and how do you manage and distribute power?” Munipella told Axios.
between the lines: It will be years before fusion companies start generating revenue from their nuclear energy projects. The spinoff of Power Solutions opens up new revenue streams for a company that would otherwise have to wait years for fusion development to pay off.
- “When I think about power solutions versus fusion, the timelines are very, very different. When it comes to power solutions, the revenue opportunity is near, if not immediate,” Munipella said.
or comment: TAE Power said the two acquisitions enabled the newly independent company to participate in important projects, including advanced battery development for BMW.