LION E-Mobility AG: A High-Growth Play in the EV Battery Sector with Profitability Now in Sight

The global electrification transition is accelerating at an unprecedented pace, driven by regulatory mandates, corporate sustainability goals, and consumer demand for cleaner transportation. At the forefront of this shift is LION E-Mobility AG (LION.DE), a German-based innovator in energy storage solutions. With a 71% revenue surge in the first half of 2025, a dramatic EBITDA turnaround, and a web of strategic partnerships, LION is emerging as a compelling investment opportunity for those seeking exposure to the EV battery sector's next phase of growth.

Strategic Positioning in the Electrification Transition

LION's core strength lies in its immersion-cooled battery technology, a game-changing approach that addresses critical pain points in EV performance and safety. Unlike traditional air- or liquid-cooled systems, immersion cooling submerges battery cells in a dielectric fluid, enabling superior thermal regulation, higher energy density, and faster charging. This technology is particularly attractive to original equipment manufacturers (OEMs) targeting high-performance applications, such as heavy-duty trucks and long-range electric vehicles.

The company's recent development order from a leading European premium truck manufacturer underscores its strategic positioning. The project involves designing a 3 MW fast-charging battery system for a 450 km range—a use case that aligns with the European Union's stringent emissions targets and the growing demand for zero-emission freight solutions. By securing contracts in high-margin, high-impact segments, LION is not just selling batteries; it's becoming a critical enabler of the broader electrification ecosystem.

Financial Turnaround and Margin Expansion

LION's financials tell a story of resilience and disciplined execution. After a challenging 2024 marked by revenue contraction and negative EBITDA, the company has executed a sharp reversal of fortune in 2025.

• Revenue Growth: H1 2025 revenue reached €10.4 million, a 71% increase from €6.1 million in H1 2024. Q1 2025 alone saw €6.5 million in revenue, up from €1.2 million in the same period the prior year. This growth is fueled by a recovery in industrial demand and the successful commercialization of its NMC+ battery platform.
• EBITDA Turnaround: EBITDA improved to €1.3 million in H1 2025, reversing a €4.8 million loss in H1 2024. The EBITDA margin of 12.1% reflects a 50% improvement in material sourcing, cost discipline, and optimized inventory management.
• Cash Flow and Balance Sheet Strength: Operating cash flow surged to €3.3 million in H1 2025 (vs. -€5.8 million in 2024), while the equity ratio rose to 27.2% in Q1 2025, supported by a shareholder loan conversion into equity.

These metrics highlight LION's ability to scale efficiently while expanding margins—a rare combination in the capital-intensive EV battery sector.

Strategic Partnerships Driving Scalability

LION's partnerships are not just transactional; they are strategic accelerants for scalability and market penetration.

1. LeapEnergy Collaboration: By partnering with LeapEnergy, LION is expanding its reach into the stationary energy storage market, a $100 billion sector poised for rapid growth. LeapEnergy's distribution network in Europe and Canada will enable LION to deploy its advanced battery systems in grid storage applications, diversifying revenue streams.
2. hofer powertrain Alliance: This collaboration targets the industrialization of immersion-cooled battery systems, combining LION's thermal management expertise with hofer's powertrain engineering. The partnership accelerates time-to-market for high-performance solutions, reducing R&D costs and enhancing competitive differentiation.
3. OEM Validation: The truck manufacturer contract is a milestone, validating LION's technology in a segment where performance and reliability are non-negotiable. With full-scale production of its NMC+ platform slated for Q1 2026, LION is positioning itself to capture a growing share of the premium EV battery market.

Investment Case and Outlook

LION's 2025 guidance—revenues of €28–35 million and positive EBITDA—reflects confidence in its strategic direction. The company's focus on high-margin OEM projects, coupled with its ability to scale through partnerships, positions it to outperform in a sector still dominated by cost-driven players.

Key Risks:
- Supply Chain Volatility: Battery raw materials remain sensitive to geopolitical and macroeconomic shifts.
- Execution Risks: Scaling production of the NMC+ platform requires sustained R&D and capital investment.

However, LION's strong balance sheet, improved liquidity, and shareholder support mitigate these risks. The recent repayment of a bank loan and reduction of liabilities to €19.6 million by year-end 2024 demonstrate fiscal prudence.

Conclusion: A High-Conviction Play

LION E-Mobility AG is no longer a speculative bet. Its 71% revenue growth, EBITDA turnaround, and strategic alliances signal a company that has navigated its challenges and is now primed for scalable, profitable expansion. As the electrification transition accelerates, LION's immersion-cooled technology and OEM-focused strategy position it to capture value across multiple markets—EVs, grid storage, and defense.

For investors seeking a high-growth play with clear margin expansion potential, LION offers a compelling case. The next 12–18 months will be critical as the company ramps production and executes on its partnerships. Those who act now may find themselves well-positioned to benefit from the next wave of innovation in energy storage.