Garrett Motion Inc. (NASDAQ: GTX) announced a partnership with Chinese thermal‑management specialist TONFY to integrate its oil‑free centrifugal compressor into battery‑energy‑storage‑system (BESS) liquid‑cooling units. The collaboration will deploy Garrett’s high‑speed compressor technology in 80 kW cooling units for outdoor, containerized BESS deployments in China and overseas markets, with mass production slated for 2027.
The integrated compressor delivers roughly double the cooling capacity of conventional units, offers more than 10 % higher efficiency, and operates at noise levels below 75 dB(A) in testing. These performance gains are expected to meet the demanding reliability and continuous‑duty requirements of large‑scale BESS installations, a market that is expanding alongside data‑center and grid‑storage deployments worldwide.
Strategically, the partnership marks a significant step for Garrett as it expands beyond automotive and commercial vehicle turbochargers into the high‑growth BESS cooling segment. By applying its core high‑speed motor and compressor technology to energy‑efficient industrial applications, Garrett is reinforcing its diversification strategy and positioning itself to capture a share of the growing liquid‑cooling market for high‑density infrastructure.
Garrett’s recent financial performance provides context for the partnership’s importance. In Q1 2025, the company reported net sales of $878 million, down 4 % year‑over‑year, with an adjusted EBIT margin of 14.9 %. In Q1 2024, net sales were $915 million, down 6 % YoY, and the adjusted EBITDA margin was 16.5 %. The company has focused on cost management and returning capital to shareholders through share buybacks and dividends, underscoring its disciplined approach to growth.
Olivier Rabiller, President and CEO of Garrett Motion, said, “We are proud to collaborate with TONFY to bring Garrett’s oil‑free centrifugal compressor technology, proven in demanding automotive applications, to the fast‑growing energy storage liquid cooling industry.” The quote reflects the company’s broader strategy of leveraging existing technologies for new markets.
Following the announcement, Garrett’s stock advanced 5.4 %, reflecting investor optimism about the company’s diversification into the high‑growth BESS cooling sector and the application of its advanced compressor technology.
The partnership positions Garrett to generate a new revenue stream and strengthen its foothold in the expanding BESS cooling market, aligning with its long‑term goal of applying high‑speed motor and compressor technology to energy‑efficient industrial solutions.
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