Tesla Buys Ultracapacitor Supplier

Tesla Inc. has agreed to purchase Maxwell Technologies, a San Diego-based company that specializes in ultracapacitor technology, for $218 million.

The all-stock deal values each Maxwell share at $4.75, a 55% premium to the stock’s closing price on Friday. Tesla expects to complete the purchase in the second quarter.

Ultracapacitors can supplement lithium-ion batteries in electric vehicles to help improve performance. The technology’s high energy density can enable rapid response times, extend operational temperature range and double battery life, according to Maxwell.

Tesla CEO Elon Musk, a longtime proponent of ultracapacitors, said he had considered focusing his own Ph.D. at Stanford University on the technology. In 2011, Musk predicted the next breakthrough in EV energy storage likely will come from the technology rather than batteries.

The supplier lists Continental, General Motors, Lamborghini, PSA and Volvo/Geely among its automotive customers. The company also supplies ultracapacitors for heavy transportation, industrial, utility grid and wind power applications.

Last year, Maxwell and former executives were fined $3.3 million by the U.S. Securities and Exchange Commission for incorrectly reporting the company’s revenues. The SEC also fined Maxwell in 2011 over charges of bribing government officials in China.