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2 charged with stealing battery manufacturing secrets from Texas-based EV giant

proprietary technology

The technology allegedly stolen involves high-speed battery assembly lines that use a proprietary technology owned by Tesla. Photo courtesy of Tesla

Two men are accused of starting a business in China using battery manufacturing technology pilfered from Tesla and trying to sell the proprietary information, federal prosecutors in New York said Tuesday.

Klaus Pflugbeil, 58, a Canadian citizen who lives in Ningbo, China, was arrested Tuesday morning on Long Island, where he thought he was going to meet with businessmen to negotiate a sale price for the information, federal authorities said. Instead, the businessmen were undercover federal agents.

The other man named in the criminal complaint is Yilong Shao, 47, also of Ningbo. He remains at large. They are charged with conspiracy to transmit trade secrets, which carries up to 10 years in prison if convicted.

A lawyer for Pflugbeil did not immediately return phone and email messages seeking comment Tuesday night. Tesla also did not immediately return an email message.

The technology at issue involves high-speed battery assembly lines that use a proprietary technology owned by Tesla, maker of electric vehicles.

The two men worked at a Canadian company that developed the technology and was bought in 2019 by “a U.S.-based leading manufacturer of battery-powered electric vehicles and battery energy systems,” authorities said in the complaint. Tesla then was sole owner of the technology.

Prosecutors did not name either company. But in 2019, Tesla purchased Hibar Systems, a battery manufacturing company in Richmond Hill, Ontario. The deal was first reported by Electric Autonomy Canada.

"The defendants set up a company in China, blatantly stole trade secrets from an American company that are important to manufacturing electric vehicles, and which cost many millions of dollars in research and development, and sold products developed with the stolen trade secrets,” Breon Peace, U.S. attorney for the Eastern District of New York, said in a statement with officials with the Justice Department and FBI.

In mid-2020, Pflugbeil and Shao opened their business in China and expanded it to locations in Canada, Germany and Brazil, prosecutors said. The business makes the same battery assembly lines that Tesla uses with its proprietary information, and it markets itself as an alternative source for the assembly lines, authorities said.

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Cemvita expands in Brazil with acquisition, new leader

going global

Houston industrial biotech company Cemvita has announced two strategic moves to advance its operations in Brazil.

The company, which utilizes synthetic biology to transform carbon emissions into valuable bio-based chemicals, acquired a complementary technology that expands its IP and execution of scale-up capacity, according to a news release. The acquisition will bring additional synthetic biology toolsets that Cemvita believes will assist with compressing and commercializing timelines.

The company also appointed Luciano Zamberlan as vice president of operations based in Brazil.

Zamberlan will lead operational execution, site readiness and early commissioning activities in Brazil. He brings more than 20 years of experience in biotechnology to the role. He recently served as director of engineering at Raízen, Brazil’s largest ethanol producer and the world’s largest producer of sugarcane ethanol. At Raízen, he coordinated the implementation of four greenfield plants and oversaw operational teams and process optimization for second-generation ethanol (E2G) and biogas.

“I am very pleased to join Cemvita, a company at the forefront of transforming waste into valuable, sustainable resources,” Zamberlan said in the release. “My expertise in scaling-up innovation, coupled with my experience in structuring and commissioning greenfield industrial operations, is perfectly aligned with Cemvita's mission and I'm eager to bring my energy and drive to accelerate Cemvita's industrial performance and contribute for a circular future.”

Cemvita expanded to Brazil in January to help capitalize on the country’s progressive regulatory framework, including Brazil’s Fuel of the Future Law, enacted in 2024. The law mandates an increase in the biodiesel content of diesel fuel, starting from 15 percent in March and increasing to 20 percent by 2030. It also requires the adoption of Sustainable Aviation Fuel (SAF) and for domestic flights to reduce greenhouse gas emissions by 1 percent starting in 2027, growing to 10 percent reduction by 2037.

“These steps enable us to augment Brazil’s longstanding bioindustrial ecosystem with next-generation capabilities, reducing early commercialization risk and expanding optionality for future product platforms,” Marcio Silva, CTO of Cemvita, said in the news release. “Together, they strengthen our ability to move from proof-of-concept to industrial reality.”

Houston airport debuts solar canopy and more energy news to know

Trending Topics

Editor's note: We're looking back at the biggest Houston energy transition stories for the second half of September. From Hobby's new solar canopy to the most promising clean tech startups, here's the top energy news to know from September 15-30, 2025:

1. Hobby debuts solar canopy as airport system reaches new sustainability milestone

Hobby Solar Panel

Hobby's solar canopy. Courtesy photo

Houston's William P. Hobby Airport is generating its own clean energy. Houston Airports announced that Hobby's red garage is now home to a "solar canopy" that is producing energy at 100 percent capacity to power daily operations. The photovoltaic (PV) solar system generated more than 1.1 gigawatt-hours of electricity in testing, and is expected to produce up to 1 megawatt-hour now that it's operating at full power.

“This project is proof that sustainability can be practical, visible and directly tied to the passenger experience,” Jim Szczesniak, director of aviation for Houston Airports, said. Continue reading.

2. Houston Methodist leader on the push for sustainable health care and new local event

Dr. Faisal N. Masud, medical director of critical care at Houston Methodist and a champion for sustainability efforts. Courtesy photo

Every industry can play a role in the energy transition, and Houston Methodist is leading the charge in the health care sector. Culminating at September's inaugural Green ICU Conference, part of Houston Energy and Climate Startup Week, the health care system has spent the last three years taking a closer look at its environmental footprint—and showing other hospital systems and medical organizations how they too can make simple changes to reduce emissions.

The event brought together health care professionals, industry leaders, policymakers and innovators to explore solutions for building a more sustainable healthcare system. Continue reading.

3. Rice Alliance Energy Tech Venture Forum names most-promising startups

Ten climatetech startups were named most-promising at this annual Rice Alliance Energy Tech Venture Forum. Photo courtesy Rice Alliance.

Investors at the Rice Alliance Energy Tech Venture Forum have named the 10 most-promising startups among the group of 100 clean tech companies participating in the event.

The 22nd annual event was held September 18 at Rice University’s Jones Graduate School of Business and was part of the second Houston Energy and Climate Startup Week. The most-promising startups will receive $7,000 in in-kind legal services from Baker Botts. Continue reading.

4. Daikin to run massive Houston-area campus on solar power through new Engie partnership

Daikin has tapped Engie North America to provide clean electricity for its Texas facilities, including the massive Daikin Texas Technology Park. Photo courtesy Daikin.

Japan-based HVAC manufacturer Daikin has struck a five-year deal with Houston-based Engie North America to fully power its Texas facilities with renewable energy.

The deal includes Daikin Texas Technology Park (DTTP), home to the company’s North American headquarters and its largest factory (and one of the largest factories in the world). The more than $500 million, 4.2 million-square-foot campus sits on nearly 500 acres in Waller. Continue reading.

5. Solar tracking manufacturer opens second Houston facility

PV Hardware USA has opened a new 95,000-square-foot manufacturing facility in Houston. Photo via pvhardware.com.

PV Hardware USA, a provider of solar tracking and foundation solutions, has announced the opening of its second U.S. manufacturing facility in Houston, which is expected to create more than 100 jobs locally and strengthen domestic production capacity for solar energy facilities.

The 95,000-square-foot facility began operations in July and aims to increase production while reducing lead times for customers. The new state-of-the-art building joins the company’s first $30 million U.S. manufacturing facility, which opened in Houston in May 2024 as one of America’s largest solar tracker manufacturing facilities. Continue reading.

Greentown Labs partners with California software developer on new center

power partnership

Greentown Labs has partnered with Los Angeles-based software development firm Nominal to launch the new Industrial Center of Excellence at Greentown's Houston incubator.

Nominal will provide access to its connected test and operations stack to help engineers working at Greentown Houston startups boost their "efficiency, automation, and scalability," according to a news release. The news comes just a few days after Greentown announced a partnership with Houston-based EnergyTech Nexus, which will also open an investor lounge on-site.

"Our mission is to remove friction for innovative entrepreneurs, so they can rapidly scale their transformative solutions," Lawson Gow, Greentown's Head of Houston, said in the release. "The Industrial Center of Excellence with Nominal will complement Greentown's robust prototyping, equipment, and lab offerings to accelerate entrepreneurs' ability to bring disruptive technologies out of the lab and into the world."

According to Greentown and Nominal, the partnership will support startups that are focused on decarbonizing the manufacturing sector, which Greentown estimates represents about a third of startups in its Houston incubator.

The new center will host specialized workshops and Nominal will now offer weekly office hours for Greentown startups.

"The future belongs to teams who can deliver resilient hardware faster than anyone else," Bryce Strauss, co-founder of Nominal, added in the statement. "Competitive edge is defined by test velocity. Nominal is building a connected stack of software tools where every discipline works shoulder-to-shoulder to make confident, real-time decisions."

Nominal, which supports engineering work in the aerospace, energy, automotive and defense industries, closed a $75 million series B round this summer.

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