The company also intends to hire 50 new people, bringing its total number of employees to 545, beginning in 2022, the company said.

With the investment in Saxony, Skeleton aims to expand its research and development as well as scale its production. The company's graphene-based ultracapacitors are needed in transport in particular in order to reduce carbon dioxide and nitrogen oxide emissions.

"In 2017, we announced our first stage in Saxony  —  €6.2 million were invested in the production of ultracapacitors in Großröhrsdorf," Skeleton co-founder and CEO Taavi Madiberk said in a press release. "We have successfully entered the market and helped save fuel and reduce emissions from buses, trucks, railway vehicles and industrial machinery."

The company noted that Skeleton's biggest competitor in the field of ultracapacitors is Tesla; the latter, in turn, also competes with German car manufacturers on the global electric vehicle market. In order to maintain its position as market leader, Skeleton will need to invest heavily in research and development as well as in increasing production capacity.

For this reason, Skeleton Technologies decided to invest an additional €25 million and complete the project by the end of 2019. Skeleton's total investment in Saxony now amounts to €31.2 million.

As Germany is undergoing an energy policy turnaround via its decision to phase out nuclear energy and lignite, Saxony is currently seeing a new era in energy policy, Saxon State Minister for Economic Affairs, Labor and Transport Martin Dulig said.

"Thus, the issue of security of supply holds an important position on the agenda," Mr Dulig explained, adding that he was pleased that Skeleton is investing in Saxony.