The largest supplier of batteries to the British military for use in communications and transport has secured a £1.25m funding line as it looks to expand its reach into the UK energy market.
Oxford-based Denchi Power has provided more than 60% of Lithium-Ion cell batteries for military equipment since agreeing a £45 million contract with the Ministry of Defence in 2002.
Founded in 1996 as part of the privatisation of the UK’s Atomic Energy Agency (AEA), the business specialises in providing primary and secondary rechargeable batteries to high reliability markets.
The business has expanded its sites in Abingdon and Thurso in the Scottish Highlands since completing a management buyout in 2014, with a total headcount of 120. The company’s latest financial results saw turnover hit £5.7 million in the year to February 2017, a rise of 10% on 2016 figures.
The invoice discounting line, provided by Secure Trust Bank Commercial Finance, will enable the business to launch a new product into the UK energy market. The ‘Slice’ batteries, which capture power from intermittent renewable energy sources, have been created to produce an alternative energy supply to the National Grid to be used in residential, commercial and utility markets.
Sales are expected to commence in the first quarter of 2018 to address a potential market of £80 million.