Australian battery manufacturer lands funds for expansion plans
Australian battery maker and power systems manufacturer Magellan Power has secured a minority investment from Perth-based private equity firm Viburnum Funds to scale up production of its residential battery and commercial energy storage systems and expand its operations.
“It’s a strategic partnership that’ll help us scale our Australian manufacturing and rapidly expand our nation capability,” Magellan Managing Director Masoud Abshar said.
Magellan designs, makes and services AC and DC power systems, battery energy storage solutions and off-grid power infrastructure largely for industry applications such as mining, defence, transport (remote EV charging) and utilities.
It has also recently launched its direct-to-retail home battery, dubbed Karri.
The investment, Magellan’s first outside equity injection, follows the company’s decision last year to seek $15 million (USD 10.6 million) from investors to accelerate its growth plans.
The company, which currently manufactures up to 2 MWh of battery systems a year at plant in the Perth suburb of Bibra Lake, said the fresh capital will allow it to increase production capacity and expand its national footprint. Magellan has previously indicated it plans to scale its manufacturing capacity to 250 MWh annually.
“The capital will primarily boost our advanced manufacturing at our Perth headquarters,” Abshar said.
“We’re bringing in semi-automation and modular production systems that’ll significantly increase our output while maintaining the rugged reliability that’s essential for our mining, defence and utilities clients.”
“We’ll also scale our battery energy storage platforms, including Karri for homes and our Pilbara range of communities and industrial sites, alongside our stand-alone power systems and industrial UPS (uninterruptible power supply) products.”
The investment will also support the company’s national expansion plans.
Magellan – which already has established facilities in Brisbane, Sydney, Port Hedland and Newman and exports “selectively” – said it plans to “invest heavily” in expanding its domestic footprint, especially in manufacturing and service in Brisbane and Sydney.
“We’re strengthening our commitment to critical sectors including mining, utilities, defence, and renewable energy, all backed by fast, local support from our teams across Australia,” Abshar said.
The investment will also be used to expand the company’s battery recycling operations. Magellan is developing a 4R program that focuses on battery repair, refurbishment, repurposing, and recycling.
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