EnerVenue, a startup that has developed a substitute for lithium-ion batteries for long-duration renewable power storage, is elevating $515 million in recent fairness, per an SEC submitting seen by TechCrunch.
The corporate is within the means of constructing a gigawatt-scale manufacturing facility in Kentucky to supply its nickel-hydrogen batteries, an endeavor that’s estimated to price $264 million. The corporate most not too long ago raised $125 million in a Sequence A spherical that closed in late 2021. Given the dimensions of the manufacturing facility funding, it’s possible that the brand new funds will go towards the challenge.
To this point, EnerVenue has raised $308 million of the $515 million goal, the submitting says. An organization spokesperson didn’t instantly reply to a request for remark on the time of publication.
The startup’s nickel-hydrogen expertise is predicated on batteries that have been initially used to retailer energy aboard the Worldwide Area Station and in satellites, just like the Hubble Area Telescope. In some ways, nickel-hydrogen is a perfect sort of battery for spacecraft: the chemistry can stand up to freezing chilly and blistering warmth, and it doesn’t lose a lot capability over time, which means it may possibly final so long as the craft is anticipated to stay.
However nickel-hydrogen has traditionally been costly. For space-based purposes, that’s much less of a priority; price is commonly far down the checklist of priorities. However on Earth, price tends to reign supreme.
The equation modified, although, when Yi Cui, a professor at Stanford College and chairman of EnerVenue, tweaked the chemistry to take away costly platinum. Cui expects that adjustment and others to assist drive the associated fee per kilowatt-hour down under $80 when the batteries are produced at scale.
The batteries themselves extra carefully resemble elongated SCUBA tanks than AA cells. That’s as a result of they must include gaseous hydrogen, which is launched when the battery is charged.
Nickel-hydrogen batteries aren’t as power dense as lithium-ion, which means they received’t be competing for area in electrical autos fairly but. However as a result of these batteries can stand up to a variety of temperatures, they don’t want costly cooling gear like lithium-ion cells. EnerVenue is betting that its compact association and low upkeep necessities will draw the eye of utilities, who’re looking for methods to retailer extra renewable energy. Final 12 months, the startup mentioned it had 7 gigawatt-hours price of commitments from prospects.
The dimensions of the brand new spherical displays the challenges that many hardware-based local weather tech corporations face when making an attempt to scale as much as meet business demand. Constructing the first-of-a-kind manufacturing facility is commonly costly, however the dangers concerned imply that infrastructure funds hesitate to supply the required credit score. In consequence, startups usually have to boost massive sums from enterprise companies, buying and selling fairness for the cash wanted to construct massive initiatives. Discovering companies prepared to take the chance is a hurdle in and of itself.
EnerVenue seems to have a minimum of partially surmounted that hurdle, discovering sufficient traders for a large Sequence B. The subsequent problem can be finishing the manufacturing facility, scaling manufacturing and sending its novel batteries out into the world.
