Tesla plans to buy Maxwell Technologies for $218 million

Image: Paul Hennessy/NurPhoto via Getty Images

Tesla is adding an energy storage company to its electric vehicle and energy business. 

In a $218 million deal with San Diego-based Maxwell Technologies announced Monday, Tesla plans to buy the energy storage makers who build products for the grid, cars, trucks, transportation systems (like railroads), and more.

“We are always looking for potential acquisitions that make sense for the business and support Tesla’s mission to accelerate the world’s transition to sustainable energy,” a Tesla spokesperson said in a statement.

The purchase — expected to close later this year — will give Tesla more access to building cells, battery systems, and modules for its battery-powered vehicles, and energy supplies. Currently, Tesla’s Reno, Nevada Gigafactory is the main site for its own battery production with Panasonic. 

With demand for Tesla’s latest EV, the Model 3, higher than ever and an unfulfilled promise for a cheaper base model, the car maker needs to keep up with battery manufacturing, not just making the cars at its Fremont, California car plant.

Maxwell also makes ultracapacitors which could advance Tesla’s battery technology.

In other energy news, Tesla Powerpack batteries will power more than 100 Electrify America electric vehicle charging stations across the country. The 210 kW battery system will go into stations throughout the year and provide 350 kWh of charging capacity. That’s considered fast charging, a hallmark of the Tesla brand.

Electrify America said the stations will be able to add more capacity over time — so hold on for even more and faster charging.