TDK to Acquire Malaysia’s Linergy Power for $240 million to Expand AI‑Focused Battery Capacity

Business news

Tokyo‑based TDK Corp. disclosed on May 20 that it will acquire Linergy Power, a Kuala Lumpur‑based startup specializing in midsize lithium‑ion batteries, for an enterprise value of roughly $240 million. The transaction, expected to close in the second half of 2026, will add Linergy’s 150‑megawatt‑hour (MWh) annual output capacity to TDK’s existing battery portfolio, which already accounts for more than 60 % of the company’s net sales.

Market context

The AI boom is reshaping demand patterns for energy storage. Large‑scale language models and generative AI services require data‑center operators to provision tens of megawatts of backup power that can be dispatched within seconds. Traditional utility‑scale batteries, optimized for long‑duration discharge, are ill‑suited to this use case. Instead, manufacturers are racing to produce high‑energy‑density, fast‑response cells that can be stacked in modular racks.

TDK’s battery division reported a 23 % year‑over‑year revenue increase in Q4 2025, driven largely by AI‑related contracts with hyperscale cloud providers. At the same time, the company faces supply‑chain pressure: a 15 % shortage of cobalt‑free cathode material has pushed up component costs across the sector. Acquiring Linergy, which has secured a strategic partnership with a Malaysian petrochemical group for cobalt‑free cathode feedstock, gives TDK a more resilient upstream source.

Regionally, Southeast Asia is emerging as a low‑cost hub for midsize cell production. According to a recent IDC forecast, the ASEAN battery market will grow from $4.2 billion in 2025 to $7.8 billion by 2030, with AI‑centric applications representing roughly 30 % of that growth. Linergy’s plant in Penang already operates at 85 % capacity utilization, positioning it to scale quickly without the need for major capex.

What it means

• Supply‑chain diversification – By integrating Linergy’s manufacturing footprint, TDK reduces reliance on Japanese and Chinese suppliers for critical raw materials, mitigating geopolitical risk and price volatility.
• Accelerated AI‑battery roadmap – The added 150 MWh capacity enables TDK to meet projected AI‑data‑center demand of over 1 GW of backup power by 2028, a threshold cited by major cloud operators as a key barrier to further AI model scaling.
• Financial impact – Assuming Linergy contributes $45 million of EBITDA annually (based on disclosed 2025 figures) and TDK applies a 10 % discount‑to‑cash‑flow multiple, the acquisition should be accretive to earnings within 12‑18 months. The deal also aligns with TDK’s target of double‑digit organic growth in its battery segment through 2027.
• Strategic positioning – With rivals such as Samsung SDI and CATL expanding AI‑focused battery lines, TDK’s move signals a shift from a component‑supplier model to a solution‑provider stance, offering integrated power‑management modules alongside the cells.

Overall, the Linergy acquisition gives TDK a foothold in a fast‑growing segment of the battery market, strengthens its supply chain against material shortages, and positions the company to capture a larger share of the AI‑driven energy‑storage spend expected to exceed $12 billion globally by 2029.