LION Smart Production GmbH and BMW AG signed agreement to acquire product and production license

Baar (CH)/Garching (GE), 31 May, 2022 – LION Smart Production GmbH, a wholly owned subsidiary of LION E-Mobility AG for the production of electrical energy storage and lithium-ion battery system technology, confirms that the company and BMW both signed the agreement for the acquisition of a product and production license in the field of high-voltage battery systems. The objective of this agreement for LION is to quickly start its own series production of batteries so it can supply customers directly and grow the business. For this purpose, LION E-Mobility AG has founded its own production company, LION Smart Production GmbH. The handover over of the business is planned to happen in several steps between Q3/2022 and Q1/2023.

“We expect this agreement with BMW to lead to a rapid, simplified entry into series production. The demand for battery storage in the coming years is expected to increase tremendously, and with a series production capacities we will be enabled to reliably and independently meet that market demand,” commented Winfried Buss, Managing Director of LION Smart Production GmbH.

A possible start of production is scheduled for Q2/2023. Preparations for this are running fast. LION has already identified a production site in Thuringia and is currently in contract negotiations with the owner. At the same time, the search for qualified personnel has begun. The Plant Manager has already been hired, and the selection process for ten other positions has begun. The goal is for LION Smart Production GmbH personnel to be trained on key aspects of battery production before the handover.

“It has taken a while. But with this agreement, we are a very big step closer to our goal of starting our own series production of batteries. The start of production will be a milestone in our company’s history. It is therefore very good news for our investors, customers, and employees,” said Alessio Basteri, Chairman of the Board of Directors of LION E-Mobility AG, underlining the importance of the agreement with BMW.

About LION E-Mobility AG:

LION E-Mobility AG is a listed Swiss holding company founded in 2011 with promising strategic investments in the e-mobility sector, especially in the field of electrical energy storage and lithium-ion battery system technology. The company holds 100% of the German LION Smart GmbH, a developer of battery packs and battery management systems. LION Smart GmbH also holds a 30% stake in TÜV SÜD Battery Testing GmbH, a successful joint venture with TÜV SÜD AG. LION E-Mobility AG also holds 100% of the shares in LION E-Mobility North America Inc. and 100% of the German LION Smart Production GmbH.

www.lionemobility.com

Responsible for the press release: Board of Directors LION E-Mobility AG

LION Smart Production GmbH

Winfried Buss

Managing Director

LION E-Mobility Investor Relations

Frank Schönrock (Weber Shandwick)

Phone: +49 (0) 1737025315

E-Mail: ir@lionemobility.com | www.lionemobility.com

Arne Siegner

Phone: +41 (0) 41 500 54 11

E-mail:  ir@lionemobility.com | www.lionemobility.com

Disclaimer:

Statements that express or contain forecasts, expectations, views, plans, goals and assumptions regarding future events or performance are not considered historical facts and may therefore be forward-looking statements. Forward-looking statements are based on the expectations, estimates and plans at the time the statements were made, and therefore involve a number of risks and uncertainties that could cause actual results or events to differ materially from those currently anticipated become. LION E-Mobility AG is under no obligation to update the forward-looking statements in this press release.