Romeo Power Surges On Deal To Develop Next-Gen EV Battery Technology

Romeo Power Inc RMO shares were advancing Friday following a deal announced by the company.

What Happened: Romeo, which provides battery packs for commercial fleets, announced a memorandum of understanding with Ecellix to develop and launch next-generation battery technology.

The strategic partnership will leverage Ecellix's ultra-high capacity eCell technology and Romeo's battery pack, modules and battery management system to create advanced electrification solutions for the commercial vehicle industry.

Ecellix's eCell micro-porous silicon anode battery materials aim to replace graphite in lithium-ion batteries.

Why It's Important: The strategic partnership, the companies said, will lead to the development of battery tech with market-leading range, faster charge times, maximized uptime and increased profit per mile.

The combination of Ecellix's high energy density materials and Romeo's advanced truck battery architecture has the potential to reduce the weight of a 1-megawatt-hour battery pack by up to 9,900 pounds.

This would mean a reduction in the weight of a battery-electric Class 8 truck by up to 25%, giving a range of over 600 miles.

"We are thrilled to collaborate with Ecellix. Their battery material technology is impressive, adding up to 50% more energy to current generation lithium-ion batteries," said Lionel Selwood, Jr., CEO of Romeo Power, said in a statement.

RMO Price Action: Romeo shares were advacing 2.94% to $14.73 at last check Friday.

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