October 10, 2019: Bipolar plate company Integral Technologies has sold all rights and patents to its proprietary technology to Pivotal Battery, a corporation that was set up in March solely to commercialize the batteries, Pivotal confirmed on October 4. Pivotal was co-founded by former Axion Power CEO Richard Bogan and John Boesel, owner of the company JB Diversified Financial.
The $2 million acquisition, which is in addition to a $1.8 million note, includes two pending bipolar patents and all of Integral’s prototypes, trade secrets and know-how related to bipolar technology.
Integral will also receive 1.5 million shares of Pivotal Battery common stock, which means a 15% ownership. Integral will be left with long-term revenue streams via licence agreements and royalties, as well as all rights to its other technologies — such as heating devices, antennas and fuses — that have not yet been monetized, the company said.
Central to the technology is Integral’s subsidiary company ElectriPlast’s highly conductive plastic materials, which form the foundation of the plates and have enabled the creation of highly conductive polymer compounds needed in applications where conductivity has to be compatible with the conductivity of certain metals.
“The ElectriPlast hybrid conductive material is a critical component of our bipolar battery,” Bogan told BESB. “Without it, we believe bipolar batteries cannot be produced in the volume of the economies of scale we are seeking.”
Under the agreement, Pivotal will have to buy the ElectriPlast material for the next 10 years, and for the same period Integral will not be able to conduct business that competes with the technology sold to Pivotal. The 10-year period can be extended.
“Our interest in Integral is that we view energy storage as an excellent platform for investment and growth but the technologies we were exploring seemed far from commercialization,” said Bogan.
“The Integral technology was more advanced and attractive to us, especially since Integral focused on a lead acid chemistry for its first battery, which we believe has numerous advantages over other chemistries. We expect lead acid batteries to remain the dominant battery technology and our bipolar plates are a good fit for this chemistry, which will help accelerate our entry into the market.
“The acquisition was critical in our strategy to develop and commercialize a bipolar lead acid battery. We have not announced a launch date, however Integral has already produced generation 1 prototype batteries, and we are working towards a Gen 2 prototype for 2020.
“Exact timing is partially driven by strategic partnerships and investments.”
“We’re excited about this sale and the new long-term relationship it creates with Pivotal,” said Integral CEO Doug Bathauer. “The sale not only provides us with current revenue, it also gives us another revenue source from future sales of our ElectriPlast line of conductive plastic needed to manufacture the bipolar battery.”
Target markets for the batteries include stop-start and 48V applications, low-speed EVs, wheelchairs and scooters, and marine, telecoms and grid storage.