Dragonfly Energy and Stryten Energy Forge $30M Licensing Deal, Expanding Lithium Battery Market Reach

In a significant move that could reshape the energy storage landscape, Dragonfly Energy Holdings Corp. (NASDAQ: DFLI) and Stryten Energy have announced a licensing agreement potentially worth over $30 million. This partnership aims to integrate Dragonfly Energy's advanced lithium-ion battery technology into Stryten's product lineup, targeting military, automotive, marine, power sports, lawn and garden, and golf cart applications.

The agreement allows Stryten Energy, a leading North American battery manufacturer with over 2,500 employees and ten manufacturing plants, to use Dragonfly Energy's Battle Born Batteries® brand in a new range of lithium battery products. This collaboration is expected to significantly expand Dragonfly Energy's market presence and Stryten's lithium battery operations.

Under the initial phase of the partnership, Dragonfly Energy will contract manufacture lithium battery models for Stryten and provide custom battery design services. The deal is anticipated to result in Battle Born Batteries branded products appearing in major big-box stores, leveraging Stryten's strong retail relationships. To support the expected increase in customer demand, Dragonfly Energy plans to expand its technical support capabilities.

This strategic partnership opens up new and lucrative markets for Dragonfly Energy's Battle Born Batteries brand. By collaborating with Stryten Energy, the company gains access to a vastly wider customer base across various industries, potentially solidifying Battle Born's position as a leading name in lithium-ion batteries.

The collaboration also focuses on sustainability, with Stryten leveraging its existing battery recycling infrastructure to create a closed-loop system for Battle Born Batteries products. This commitment to environmental responsibility aligns with growing consumer demand for sustainable energy solutions and enhances the overall value proposition for customers.

Mike Judd, CEO and President of Stryten Energy, emphasized the importance of this partnership in supporting the company's investment in domestic lithium battery assembly. He stated, "This partnership creates a path for Stryten to incorporate Dragonfly Energy's future production of lithium battery cells in North America into batteries assembled in our facilities, a critical component to establishing a strong industrial base and achieving our country's energy independence and sustainability goals."

Dragonfly Energy's innovative dry electrode battery manufacturing technology is a key factor in this partnership. A recent third-party assessment revealed that the company's process is not only cost-competitive with China's but also significantly more sustainable, eliminating toxic solvents and reducing energy consumption.

This deal follows other recent high-profile partnerships for Dragonfly Energy, including providing power solutions to Refreshment Services Pepsi, an independent bottler and distributor for Pepsi-Cola® (NASDAQ: PEP). The company has also been recognized for its technological innovation, hosting an event with U.S. Secretary of Commerce Gina Raimondo and Nevada Senator Jacky Rosen, where a $21 million investment in Nevada's tech hub was announced.

As the world moves towards a greener future, the demand for lithium batteries is expected to increase. This partnership between Dragonfly Energy and Stryten Energy positions both companies to play a crucial role in meeting this growing demand while promoting sustainable energy solutions and domestic battery manufacturing.