Maxwell Technologies and Siemens Matsushita Components Announce Strategic Partnership for Ultracapacitor Development

Strategic Insights -

Maxwell Technologies, Inc. has announced a comprehensive partnering agreement with Siemens Matsushita Components GmbH for the development and manufacturing of ultracapacitors. The partnership is projected to bring in $30 million in royalties over the next 10 years, with Siemens Matsushita estimating sales of $100 million per year within five years. The agreement includes the transfer of technology, sharing of on-going product development, and the rights to manufacture, market, and sell Maxwell's PowerCache ultracapacitors.

Key Takeaways:

  • Maxwell Technologies and Siemens Matsushita Components have formed a strategic partnership for the development and manufacturing of ultracapacitors, with the partnership projected to generate $30 million in royalties over the next 10 years.
  • Siemens Matsushita estimates sales of $100 million per year within five years, with the company set to manufacture, market, and sell Maxwell's PowerCache ultracapacitors.
  • The partnership includes the transfer of technology and sharing of ongoing product development, with Maxwell Technologies providing strategic guidance and support.
  • The agreement will enable Maxwell Technologies to accelerate its ultracapacitor product launch on a global basis, with potential for further market penetration.
  • Maxwell Technologies recently announced a 24% increase in sales for its fiscal 1998 year over the prior year, with strong growth in its Energy Products subsidiary.
  • The company plans to pursue design-ins of the ultracapacitors for automotive applications, power quality systems, consumer electronics, power tools, robotics, telecommunications devices, and other electrical and electronic products.

Statistics:

  • $30 million: projected royalties for Maxwell Technologies over the next 10 years
  • $100 million: estimated annual sales for Siemens Matsushita within five years
  • $1.2 billion: annual sales for Siemens Matsushita Electrical Industries
  • 10 years: duration of the partnership
  • $30 million: initial licensing fees for Maxwell Technologies
  • 5 years: timeframe for Siemens Matsushita to reach estimated sales of $100 million per year

Sources:

  • Maxwell Technologies press release, Oct. 6, 1998
  • Siemens Matsushita Components press release, July 1998
  • Maxwell Technologies SEC reports, including the report on Form 10-K for the year ended July 31, 1997