Venture capital deals value in advanced batteries skyrocket 850% YoY in 2021, finds GlobalData

Advanced batteries, which are sophisticated versions with superior properties, are grabbing attention in accelerating the commercialization of electric vehicles (EVs). Against the backdrop, the value of venture capital (VC) deals in advanced batteries shot up by 850% year-on-year (YoY) in 2021 with focus on lithium chemistries, reveals GlobalData, a leading data and analytics company.

Prasad Kakade, Senior Disruptive Tech Analyst at GlobalData, comments: “Big deals from VC investors are pushing forward the advanced batteries funding to a new high. The major focus of such deals is primarily to accelerate the commercialization of lithium-powered batteries that exhibit high energy density, superior performance, increased safety, and are cost-effective.”

GlobalData’s latest FutureTech series report, ‘Performance Meets Sustainability – Can Advanced Batteries Facilitate Energy Transition?’, highlights various lithium-based battery startups looking to accelerate the adoption of EVs.

China-based SVOLT manufactures lithium-ion batteries for EVs and energy storage. In December 2021, it received $930m from Sichuan Energy Investment, Han’s Laser Technology, and others to expand the production facilities and R&D centers for its energy-dense and safe lithium iron phosphate batteries.

US-based SES (formerly SolidEnergy Systems) produces energy-dense and cost-efficient lithium-metal batteries to power the future of EVs and electric vertical take-off and landing (eVTOLs). In April 2021, the company raised $139m in a Series D funding round with participation led by the VC arm of General Motors and other investors including Shanghai Auto, Temasek, Applied Ventures, and Vertex. In July 2021, the company went public via a merger with a special purpose acquisition company (SPAC) Ivanhoe Capital.

US-based Solid Power develops all-solid-state cost-efficient rechargeable lithium batteries catering to various electromobility segments. In May 2021, the company raised $130m in an investment round led by the VC arms of BMW and Ford along with Volta Energy Technologies. The financing was used to increase the production of its high-performance lithium-ion batteries and expand in-house manufacturing capabilities for future vehicle integration.

Kakade concludes: “In the coming years, the VC interest in EV battery startups seems to be far from running dry. The interest is likely to be driven by clean energy requirements and the growing demand for zero-emission, all-electric cars. With new opportunities flocking to these areas, battery materials with minimal environmental footprint and sustainable designs would create a new race for battery supremacy.”