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Czech cyanide producer Draslovka finds new revenue driver in the sodium-ion batteries market

Czech cyanide producer Draslovka finds new revenue driver in the sodium-ion batteries market

The CEO of Czech chemicals manufacturer Draslovka, Pavel Bruzek Jr., said that the company expects to earn more than a quarter of its total gross income in five years due to a growing demand for sodium-ion battery.

In recent years, the company has grown and derived most of its revenue from U.S. operations. It has partnered with Natron Energy this month to supply Prussian Blue material for their batteries.

Prussian Blue is made by Draslovka from sodium cyanide. It's a product that it produces in both the United States and Czech Republic.

Bruzek said late on Friday that a Czech production for Natron Energy is expected to begin in 2026. This will be used as a model for a bigger U.S. facility to feed Natron. Last year, Natron announced it would invest $1.4 billion into a sodium-ion batteries facility in North Carolina.

Data centres, for instance, use Sodium-based Batteries for short-term energy storage. These batteries only store half as much energy as lithium-based batteries per kilogram.

Bruzek stated that the global economic crisis has pushed Draslovka’s plans for raising its earnings before interest tax, depreciation, and amortization (EBITDA), to approximately $400 million by 2020, to 2029 or 2030 on revenues of around $1 billion.

He said, "We're on the right track but we won't get there exactly as originally planned."

He added that the new business could "definitely" contribute to a third EBITDA, and "it could be even more".

Draslovka's adjusted EBITDA was $74.8 million by 2023 and its EBITDA margin was 16%. Bruzek's outlook is for a higher profit margin, driven by the sales of capital-intensive and service solutions.

He said Draslovka controlled by Czech family investment firm BPD Partners and Bruzek’s family was looking for potential investors to fund expansion but, for the moment, it was supported by existing shareholders.

Oaktree Capital Management invested 150 million dollars in Draslovka by 2023.

Draslovka had previously considered an initial public offer, but Bruzek stated that the time wasn't right. (Reporting and editing by Andrew Heavens; Jan Lopatka, Jason Hovet)

(source: Reuters)