TAE Technologies spins off TAE Power Systems

TAE Technologies, a nuclear fusion developer, has spun off its power management division, the company tells Axios,

Why it matters: The move allows the parent company to focus on its fusion, and the new entity to focus on its battery technology for vehicles and renewable storage facilities.

What's happening: Privately run TAE Technologies said it has created TAE Power Solutions as a wholly owned subsidiary, a company that aims to improve renewable battery life.

• As part of the spin-off, TAE Power Solutions has made two acquisitions: The company has purchased Sprint Power, a UK-based vehicle electrification provider, and Eltrium, a UK-based manufacturer of systems for energy storage and power distribution.
• Kedar Munipella, previously a senior executive at Applied Materials, is the CEO of the new company.

What they're saying: "We’re solving the same problem in both those markets: Where and how do you manage and distribute power?" Munipella tells Axios.

Between the lines: It'll be years before fusion companies begin earning revenue from their nuclear energy projects. The power solutions spin-off opens up new revenue stream at a company that would otherwise have to wait years before fusion development pays off.

• "When I think about power solutions versus fusion, the timelines are very, very different. In terms of power solutions, the revenue generation opportunities are, if not immediate, more near term, " Munipella says.

Of note: TAE Power says that the two acquisitions gives the newly independent company access to important projects, including BMW's advanced battery development.

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