Dragonfly Energy Secures $30M Licensing Deal with Stryten Energy to Expand Lithium Battery Market Reach

Stryten Energy, a leading North American battery manufacturer, and Dragonfly Energy Holdings Corp. (NASDAQ: DFLI), a prominent name in energy storage and lithium-ion battery manufacturing, have entered a significant licensing agreement worth over $30 million. The deal will allow Stryten Energy to use Dragonfly Energy’s Battle Born Batteries brand in various lithium battery products targeting sectors such as military, automotive, marine, power sports, lawn and garden, and golf carts.

Stryten Energy, known for its lead-acid batteries and employing over 2,500 people across ten North American manufacturing plants, is making a substantial shift to expand its lithium battery operations. By integrating Dragonfly Energy's advanced technology, Stryten aims to offer more sustainable and long-lasting power solutions to its diverse customer base.

The initial phase of the agreement involves Dragonfly Energy contract-manufacturing lithium battery models for Stryten while providing custom battery design services tailored to new market needs. Leveraging Stryten's strong retail relationships, Dragonfly anticipates that Battle Born Batteries branded products will soon be available in major big-box stores. The plan also includes expanding technical support to meet the expected surge in customer demand.

This strategic move is a game-changer for Dragonfly Energy, significantly expanding the reach of its Battle Born Batteries brand into new and lucrative markets. By partnering with Stryten Energy, Dragonfly will expose the Battle Born brand to a vastly wider customer base, bolstering brand recognition and solidifying its position as a leader in lithium-ion batteries.

Stryten Energy will serve as a powerful distribution channel, propelling Battle Born Batteries into mainstream consumer and commercial markets. The collaboration aims to create a one-stop shop for battery solutions, catering to the growing demand for long-lasting batteries in consumer markets. Stryten will distribute existing Battle Born Batteries produced at Dragonfly Energy’s Nevada facility and jointly develop new battery models tailored to specific market segments.

Beyond market expansion, the partnership focuses on sustainability. Stryten will use its existing battery recycling infrastructure to create a closed-loop system for Battle Born Batteries products, ensuring proper disposal or recycling of returned products. Stryten's proven track record in sustainable lead battery recycling will be instrumental in developing a similar circular economy for lithium batteries. This commitment to environmental responsibility benefits the planet and enhances the overall value proposition for customers.

“Stryten Energy is investing in domestic lithium battery assembly to support its next-generation lithium battery production for military, essential power, and industrial applications,” said Mike Judd, CEO and President of Stryten Energy. “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.” This aligns with the U.S. government’s push for domestic battery manufacturing and energy independence.

Dragonfly Energy's patented dry electrode battery manufacturing technology is revolutionizing the industry. A recent third-party assessment revealed that the company’s process is cost-competitive with China’s, even before considering tariffs and incentives like the IRA tax credits, and significantly more sustainable. By eliminating toxic solvents, reducing energy consumption, and producing PFAS-free electrodes, Dragonfly Energy is setting a new standard for environmentally friendly battery production.

Demand for lithium batteries is growing, and Stryten is the latest high-profile deal for Dragonfly Energy. Recently, the company announced it is providing power solutions to Refreshment Services Pepsi, saving the bottler money and lowering emissions compared to using lead-acid batteries. The company also hosted an event with U.S. Secretary of Commerce Gina Raimondo and Nevada Senator Jacky Rosen, highlighting a $21 million investment in Nevada’s tech hub, focusing on scaling the production of critical technologies, including lithium batteries.

With a strong focus on research and development, Dragonfly Energy is driving initiatives for its patented non-toxic, deep-cycle Lithium Iron Phosphate (LiFePO4) batteries in the United States. The deal with Stryten Energy underscores Dragonfly’s commitment to growth and innovation in the lithium battery sector, paving the way for a greener future.