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Volkswagen will bring 240 gigawatt hours of battery production capacity to Europe by 2030

Volkswagen AG is gearing up to seize the top spot as the world’s largest electric vehicle manufacturer with plans announced Monday to have six 40 gigawatt hour (GWh) battery cell production plants in operation in Europe by 2030.

To get there, the automaker put in a 10-year, $14 billion order with Swedish battery manufacturer Northvolt — and that’s only one of the six planned factories. A second plant in Germany will commence production in 2025.

The company also announced serious investments in charging infrastructure across China, Europe and the United States. It aims to grow its fast-charging network in Europe to 18,000 stations with its partner IONITY, 17,000 charging points in China through its joint venture CAMS New Energy Technology, and to increase the number of fast-charging stations in the United States by 3,500.

The company called their first dedicated battery event “Power Day” in a clear nod to Tesla’s Battery Day. During the event, executives detailed novel battery chemistries that they said will reduce costs by up to 50%. The unified prismatic cell design, which the company dubbed the Unified Premium Battery, will be rolled out in 2023 and will be used across 80% of its EV models. The Audi Artemis, a luxury sedan, will be the first vehicle to be equipped with the unified battery, will be rolled out in 2024.

Volkswagen’s ultimate goal is to develop and deploy a solid-state battery cell, which the company anticipates for the middle of the decade. VW has made significant investments in solid-state battery manufacturer QuantumScape. Volkswagen’s head of battery cell and system Frank Blome called solid-state “the end-game” for lithium-ion battery cells. Shedding the additional weight of a traditional battery, solid-state batteries boast a 30% increase in range and a significantly faster charging time.

Scania AB, VW’s brand of heavy-duty trucks and buses, also has plans to increase its share of EVs. Departing from other major heavy-duty players that have opted for hydrogen fuel cells, company representatives on Monday said that it is unequivocally possible to electrify the heavy-duty transportation sector.

Looking to the battery’s end-of-life, VW said it will be able to recycle up to 95% of the battery through a process called hydrometallury.

This story has been updated with additional information. 

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Biden’s infrastructure plans could boost startups

As President-elect Joe Biden readies his transition team and sets the agenda for his first 100 days in office, startups can expect to see some movement on long-stalled infrastructure initiatives that could mean big boosts to their business.

Infrastructure is high on the list of priorities of the incoming Biden Administration as the former vice president hopes to make good on his campaign promise to “build back better.”

American infrastructure has been crumbling for decades without significant investment from the federal government, and much of what will be replaced will also be upgraded with new technology, according to people familiar with the Biden plan.

That means tech companies focused on next-generation telecommunications and utility infrastructure, transportation, housing and construction tech around energy efficiency could see new dollars pour in over the next four years.

“Infrastructure and build out of the clean energy economy … doesn’t necessarily mean large wind or large solar projects. It could mean advanced metering … it can be new engine technologies,” said Dan Goldman, a managing partner at Clean Energy Ventures. “We think that that can be a huge opportunity for job creation … not only putting people back to work but putting people back to work in high quality jobs.”

And there’s a willingness to encourage these infrastructure projects in less partisan ways in states like Massachusetts, Virginia and Florida, which are actively building out electric vehicle infrastructure and renewable energy projects, Goldman said.

While the federal government will ultimately be distributing the cash, startups can expect to see the spending actually come from municipalities and state governments, which often have a better understanding of local needs and where the money should go.

Next-generation energy infrastructure

The electrification of everything — a component of any zero-carbon movement — requires significant upgrades to existing power infrastructure. That means everything from systems management technologies to distribution facilities to ways to store power that can be moved on to the grid.

“Without that infrastructure investment it gets quite challenging,” said Abe Yokell, a co-founder and managing partner of Congruent Ventures. 

He pointed to large-scale energy storage technologies as one solution, but management systems for utilities will be another area of interest.

Those infrastructure initiatives will likely mean good things for battery companies like Form Energy, which signed its first major contract with Great River Energy earlier this year; or Antora and Malta, which store energy as heat; or Quidnet, which has a pumped hydroelectric play for large-scale energy storage by pumping water into the gaps between rocks underground that creates pressure and can force water back up through a generator.

Other large-scale energy storage companies working on developing and installing batteries could benefit as well. That means good things for Tesla, which has a few major battery installs under its belt, and Fluence, which manages and operates big install projects.

Natel Energy, another startup working on energy storage (and generation) using hydropower, could also find its technology in the mix, according to company founder, Gia Schneider.

Schneider sees three potential pitches for her company’s technologies. “Climate change is water change,” she said. “We have a bucket in energy, a bucket of stuff in environmental and a bucket of stuff in working lands.”

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Energy Vault raises $110 million from SoftBank Vision Fund as energy storage grabs headlines

Imagine a moving tower made of huge cement bricks weighing 35 metric tons. The movement of these massive blocks is powered by wind or solar power plants and is a way to store the energy those plants generate. Software controls the movement of the blocks automatically, responding to changes in power availability across an electric grid to charge and discharge the power that’s being generated.

The development of this technology is the culmination of years of work at Idealab, the Pasadena, Calif.-based startup incubator, and Energy Vault, the company it spun out to commercialize the technology, has just raised $110 million from SoftBank Vision Fund to take its next steps in the world.

Energy storage remains one of the largest obstacles to the large-scale rollout of renewable energy technologies on utility grids, but utilities, development agencies and private companies are investing billions to bring new energy storage capabilities to market as the technology to store energy improves.

The investment in Energy Vault is just one indicator of the massive market that investors see coming as power companies spend billions on renewables and storage. As The Wall Street Journal reported over the weekend, ScottishPower, the U.K.-based utility, is committing to spending $7.2 billion on renewable energy, grid upgrades and storage technologies between 2018 and 2022.

Meanwhile, out in the wilds of Utah, the American subsidiary of Japan’s Mitsubishi Hitachi Power Systems is working on a joint venture that would create the world’s largest clean energy storage facility. That 1 gigawatt storage would go a long way toward providing renewable power to the Western U.S. power grid and is going to be based on compressed air energy storage, large flow batteries, solid oxide fuel cells and renewable hydrogen storage.

“For 20 years, we’ve been reducing carbon emissions of the U.S. power grid using natural gas in combination with renewable power to replace retiring coal-fired power generation. In California and other states in the western United States, which will soon have retired all of their coal-fired power generation, we need the next step in decarbonization. Mixing natural gas and storage, and eventually using 100% renewable storage, is that next step,” said Paul Browning, president and CEO of MHPS Americas.

Energy Vault’s technology could also be used in these kinds of remote locations, according to chief executive Robert Piconi.

Energy Vault’s storage technology certainly isn’t going to be ubiquitous in highly populated areas, but the company’s towers of blocks can work well in remote locations and have a lower cost than chemical storage options, Piconi said.

“What you’re seeing there on some of the battery side is the need in the market for a mobile solution that isn’t tied to topography,” Piconi said. “We obviously aren’t putting these systems in urban areas or the middle of cities.”

For areas that need larger-scale storage that’s a bit more flexible there are storage solutions like Tesla’s new Megapack.

The Megapack comes fully assembled — including battery modules, bi-directional inverters, a thermal management system, an AC breaker and controls — and can store up to 3 megawatt-hours of energy with a 1.5 megawatt inverter capacity.

The Energy Vault storage system is made for much, much larger storage capacity. Each tower can store between 20 and 80 megawatt hours at a cost of 6 cents per kilowatt hour (on a levelized cost basis), according to Piconi.

The first facility that Energy Vault is developing is a 35 megawatt-hour system in Northern Italy, and there are other undisclosed contracts with an undisclosed number of customers on four continents, according to the company.

One place where Piconi sees particular applicability for Energy Vault’s technology is around desalination plants in places like sub-Saharan Africa or desert areas.

Backing Energy Vault’s new storage technology are a clutch of investors, including Neotribe Ventures, Cemex Ventures, Idealab and SoftBank.

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Negative? How a Navy veteran refused to accept a ‘no’ to his battery invention

Decades ago, a young naval engineer on a British nuclear submarine started taking an interest in the electric batteries helping to run his vessel. Silently running under the frozen polar ice cap during the Cold War, little did this submariner know that, in the 21st century, batteries would become one of the biggest single sectors in technology. Even the planet. But his curiosity stayed with him, and almost 20 years ago he decided to pursue that dream, born many years beneath the waves.

The journey for Trevor Jackson started, as many things do in tech, with research. He’d become fascinated by the experiments done not with lithium batteries, which had come to dominate the battery industry, but with so-called “aluminum-air” batteries.

Technically described as “(Al)/air” batteries, these are the — almost — untold story from the battery world. For starters, an aluminum-air battery system can generate enough energy and power for driving ranges and acceleration similar to gasoline-powered cars.

Sometimes known as “Metal-Air” batteries, these have been successfully used in “off-grid” applications for many years, just as batteries powering army radios. The most attractive metal in this type of battery is aluminum because it is the most common metal on Earth and has one of the highest energy densities.

Think of an air-breathing battery which uses aluminum as a “fuel.” That means it can provide vehicle power with energy originating from clean sources (hydro, geothermal, nuclear etc.). These are the power sources for most aluminum smelters all over the world. The only waste product is aluminum hydroxide and this can be returned to the smelter as the feedstock for — guess what? — making more aluminum! This cycle is therefore highly sustainable and separate from the oil industry. You could even recycle aluminum cans and use them to make batteries.

Imagine that — a power source separate from the highly polluting oil industry.

But hardly anyone was using them in mainstream applications. Why?

trevor battery 2

Aluminum-air batteries had been around for a while. But the problem with a battery which generated electricity by “eating” aluminum was that it was simply not efficient. The electrolyte used just didn’t work well.

This was important. An electrolyte is a chemical medium inside a battery that allows the flow of electrical charge between the cathode and anode. When a device is connected to a battery — a light bulb or an electric circuit — chemical reactions occur on the electrodes that create a flow of electrical energy to the device.

When an aluminum-air battery starts to run, a chemical reaction produces a “gel” by-product which can gradually block the airways into the cell. It seemed like an intractable problem for researchers to deal with.

But after a lot of experimentation, in 2001, Jackson developed what he believed to be a revolutionary kind of electrolyte for aluminum-air batteries which had the potential to remove the barriers to commercialization. His specially developed electrolyte did not produce the hated gel that would destroy the efficiency of an aluminum-air battery. It seemed like a game-changer.

The breakthrough — if proven — had huge potential. The energy density of his battery was about eight times that of a lithium-ion battery. He was incredibly excited. Then he tried to tell politicians…

trevor battery 1

Despite a detailed demonstration of a working battery to Lord “Jim” Knight in 2001, followed by email correspondence and a promise to “pass it onto Tony (Blair),” there was no interest from the U.K. government.

And Jackson faced bureaucratic hurdles. The U.K. government’s official innovation body, Innovate UK, emphasized lithium battery technology, not aluminum-air batteries.

He was struggling to convince public and private investors to back him, such was the hold the “lithium battery lobby” had over the sector.

This emphasis on lithium batteries over anything else meant U.K. the government was effectively leaving on the table a technology which could revolutionize electrical storage and mobility and even contribute to the fight against carbon emission and move the U.K. toward its pollution-reduction goals.

Disappointed in the U.K., Jackson upped sticks and found better backing in France, where he moved his R&D in 2005.

Finally, in 2007, the potential of Jackson’s invention was confirmed independently in France at the Polytech Nantes institution. Its advantages over Lithium Ion batteries were (and still are) increased cell voltage. They used ordinary aluminum, would create very little pollution and had a steady, long-duration power output.

As a result, in 2007 the French Government formally endorsed the technology as “strategic and in the national interest of France.”

At this point, the U.K.’s Foreign Office suddenly woke up and took notice.

It promised Jackson that the UKTI would deliver “300%” effort in launching the technology in the U.K. if it was “repatriated” back to the U.K.

However, in 2009, the U.K.’s Technology Strategy Board refused to back the technology, citing that the Automotive Council Technology Road Map “excluded this type of battery.” Even though the Carbon Trust agreed that it did indeed constitute a “credible CO2-reduction technology,” it refused to assist Jackson further.

Meanwhile, other governments were more enthusiastic about exploring metal-air batteries.

The Israeli government, for instance, directly invested in Phinergy, a startup working on very similar aluminum-air technology. Here’s an, admittedly corporate, video which actually shows the advantages of metal-air batteries in electric cars:

The Russian Aluminum company RUSAL developed a CO2-free smelting process, meaning they could, in theory, make an aluminum-air battery with a CO2-free process.

Jackson tried to tell the U.K. government they were making a mistake. Appearing before the Parliamentary Select Committee for business-energy and industrial strategy, he described how the U.K. had created a bias toward lithium-ion technology which had led to a battery-tech ecosystem which was funding lithium-ion research to the tune of billions of pounds. In 2017, Prime Minister Theresa May further backed the lithium-ion industry.

Jackson (below) refused to take no for an answer.

PHOTO 2019 06 18 19 35 52

He applied to U.K.’s Defence Science and Technology Laboratory. But in 2017 they replied with a “no-fund” decision which dismissed the technology, even though DSTL had an actual programme of its own on aluminum-air technology, dedicated to finding a better electrolyte, at Southampton University.

Jackson turned to the auto industry instead. He formed his company MAL (branded as “Metalectrique“) in 2013 and used seed funding to successfully test a long-range design of power pack in its laboratory facilities in Tavistock, U.K.

Here he is on a regional BBC channel explaining the battery:

He worked closely with Lotus Engineering to design and develop long-range replacement power packs for the Nissan Leaf and the Mahindra Reva “G-Wiz’ electric cars. At the time, Nissan expressed a strong interest in this “Beyond Lithium Technology” (their words) but they were already committed to fitting LiON batteries to the Leaf. Undeterred, Jackson concentrated on the G-Wiz and went on to produce full-size battery cells for testing and showed that aluminum-air technology was superior to any other existing technology.

And now this emphasis on lithium-ion is still holding back the industry.

The fact is that lithium batteries now face considerable challenges. The technology development has peaked; unlike aluminum, lithium is not recyclable and lithium battery supplies are not assured.

The advantages of aluminum-air technology are numerous. Without having to charge the battery, a car could simply swap out the battery in seconds, completely removing “charge time.” Most current charging points are rated at 50 kW which is roughly one-hundredth of that required to charge a lithium battery in five minutes. Meanwhile, hydrogen fuel cells would require a huge and expensive hydrogen distribution infrastructure and a new hydrogen generation system.

But Jackson has kept on pushing, convinced his technology can address both the power needs of the future, and the climate crisis.

Last May, he started getting much-needed recognition.

The U.K.’s Advanced Propulsion Centre included the Metalectrique battery as part of its grant investment into 15 U.K. startups to take their technology to the next level as part of its Technology Developer Accelerator Programme (TDAP). The TDAP is part of a 10-year program to make U.K. a world-leader in low-carbon propulsion technology.

The catch? These 15 companies have to share a paltry £1.1 million in funding.

And as for Jackson? He’s still raising money for Metalectrique and spreading the word about the potential for aluminum-air batteries to save the planet.

Heaven knows, at this point, it could use it.

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Fintech and cleantech… an odd couple or a perfect marriage?

The Valley’s rocky history with cleantech investing has been well-documented.

Startups focused on non-emitting-generation resources were once lauded as the next big cash cow, but the sector’s hype quickly got away from reality.

Complex underlying science, severe capital intensity, slow-moving customers and high-cost business models outside the comfort zones of typical venture capital ultimately caused a swath of venture-backed companies and investors in the cleantech boom to fall flat.

Yet, decarbonization and sustainability are issues that only seem to grow more dire and more galvanizing for founders and investors by the day, and more company builders are searching for new ways to promote environmental resilience.

While funding for cleantech startups can be hard to find nowadays, over time we’ve seen cleantech startups shift down the stack away from hardware-focused generation plays toward vertical-focused downstream software.

A far cry from past waves of venture-backed energy startups, the downstream cleantech companies offered more familiar technology with more familiar business models, geared toward more recognizable verticals and end users. Now, investors from less traditional cleantech backgrounds are coming out of the woodwork to take a swing at the energy space.

An emerging group of non-traditional investors getting involved in the clean energy space are those traditionally focused on fintech, such as New York and Europe-based venture firm Anthemis — a financial services-focused team that recently sat down with our fintech contributor Gregg Schoenberg and I (check out the full meat of the conversation on Extra Crunch).

The tie between cleantech startups and fintech investors may seem tenuous at first thought. However, financial services have long played a significant role in the energy sector and is now becoming a more common end customer for energy startups focused on operations, management and analytics platforms, thus creating real opportunity for fintech investors to offer differentiated value.

Finance powering the world?

Though the conversation around energy resources and decarbonization often focuses on politics, a significant portion of decisions made in the energy generation business is driven by pure economics — is it cheaper to run X resource relative to resources Y and Z at a given point in time? Based on bid prices for request for proposals (RFPs) in a specific market and the cost-competitiveness of certain resources, will a developer be able to hit their targeted rate of return if they build, buy or operate a certain type of generation asset?

Alternative generation sources like wind, solid oxide fuel cells or large-scale or even rooftop solar have reached more competitive cost levels — in many parts of the U.S., wind and solar are in fact often the cheapest form of generation for power providers to run.

Thus as renewable resources have grown more cost competitive, more infrastructure developers and other new entrants have been emptying their wallets to buy up or build renewable assets like large-scale solar or wind farms, with the American Council on Renewable Energy even forecasting cumulative private investment in renewable energy possibly reaching up to $1 trillion in the U.S. by 2030.

A major and swelling set of renewable energy sources are now led by financial types looking for tools and platforms to better understand the operating and financial performance of their assets, in order to better maximize their return profile in an increasingly competitive marketplace.

Therefore, fintech-focused venture firms with financial service pedigrees, like Anthemis, now find themselves in pole position when it comes to understanding cleantech startup customers, how they make purchase decisions, and what they’re looking for in a product.

In certain cases, fintech firms can even offer significant insight into shaping the efficacy of a product offering. For example, Anthemis portfolio company kWh Analytics provides a risk management and analytics platform for solar investors and operators that helps break down production, financial analysis and portfolio performance.

For platforms like kWh analytics, fintech-focused firms can better understand the value proposition offered and help platforms understand how their technology can mechanically influence rates of return or otherwise.

The financial service customers for clean energy-related platforms extends past just private equity firms. Platforms have been and are being built around energy trading, renewable energy financing (think financing for rooftop solar) or the surrounding insurance market for assets.

When speaking with several of Anthemis’ cleantech portfolio companies, founders emphasized the value of having a fintech investor on board that not only knows the customer in these cases, but that also has a deep understanding of the broader financial ecosystem that surrounds energy assets.

Founders and firms seem to be realizing that various arms of financial services are playing growing roles when it comes to the development and access to clean energy resources.

By offering platforms and surrounding infrastructure that can improve the ease of operations for the growing number of finance-driven operators or can improve the actual financial performance of energy resources, companies can influence the fight for environmental sustainability by accelerating the development and adoption of cleaner resources.

Ultimately, a massive number of energy decisions are made by financial services firms and fintech firms may often know the customers and products of downstream cleantech startups more than most.  And while the financial services sector has often been labeled as dirty by some, the vital role it can play in the future of sustainable energy offers the industry a real chance to clean up its image.

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Sila Nano’s battery tech is now worth over $1 billion with Daimler partnership and $170 million investment

Sila Nanotechnologies and its battery materials manufacturing technology are now worth more than $1 billion.

The company, which announced a $170 million funding led by Daimler and a partnership with the famed German automaker, started building out its first production lines for its battery materials last year. That first line is capable of producing the material to supply the equivalent of 50 megawatts of lithium-ion batteries, according to Sila Nano’s chief executive officer Gene Berdichevsky.

That construction, made on the heels of a $70 million investment round, is now going to be expanded with the new cash from Daimler and 8VC along with previous investors Bessemer Venture Partners, Chengwei Capital, Matrix Partners, Siemens Next47 and Sutter Hill Ventures.

Berdichevsky would not comment on how much production capacity would increase, but did say that the company’s battery materials would find their way into consumer devices before the end of 2020. That means the potential for longer-lasting batteries in smart watches, earbuds and health trackers, initially.

From its headquarters in Alameda, Calif., Sila Nanotechnologies has developed a silicon-based anode to replace graphite in lithium-ion batteries. The company claims that its materials can improve the energy density of batteries by 20 percent.

“If you can increase energy density by 20 percent… you can use 20 percent fewer cells and each pack can cost 20 percent less,” says Berdichevsky. “The subtext of it is that it is the way to drive price of energy storage down. And that’s the way for the electric vehicle market to sand more and more on its own.”

That kind of cost reduction is what brought BMW and Daimler to partner with the company — and what led to the massive funding round and the company’s newfound unicorn status.

Our valuation is over $1 billion dollars now,” Berdichevsky says. 

Sila Nanotechnologies

Image courtesy of Sila Nanotechnologies

For Daimler, the materials that Sila Nanotechnologies are developing will give the company’s commitment to electrification a much needed boost.

Mercedes-Benz has plans to electrify its entire product suite by 2022, the company has said. That means Daimler has to accelerate its production of electrified alternatives to its fuel-powered fleet — everything from its 48-volt electrical system (the EQ Boost), to its plug-in hybrids (EQ-Power) and the more than 10 fully electric vehicles powered by batteries or fuel cells. The company is projecting that between 15 percent and 25 percent of its total sales will be electric by 2025 — depending on customer preferences, infrastructure development and the regulatory environment in each of the markets in which it sells vehicles, the company said.

In all, Mercedes-Benz cars has committed to investing €10 billion ($11.3 billion) in the production of vehicles and another $1.3 billion into a global battery production network. The global battery production network of Mercedes-Benz Cars will in the future consist of nine factories on three continents.

“We are on our way to a carbon free future mobility. While our all-new EQC model enters the markets this year we are already preparing the way for the next generation of powerful battery electric vehicles,” said Sajjad Khan, executive vice president for Connected, Autonomous, Shared & Electric Mobility, Daimler AG in a statement.

Still, consumers shouldn’t expect to see vehicles with Sila Nano’s technology until at least the mid 2020s, as automakers look to prove that the company’s battery technology meets their quality assurance standards. “The qualification time means there’s many years of work to make sure it is reliable for next 10 to 20 years,” says Berdichevsky. “Our partnership is geared towards mid-2020s production targets, but the qualification is something that takes quite a while.”

The company’s latest round brings its total financing to just under $300 million since its launch in 2011. And as a result of the latest funding, former General Electric chief executive Jeff Immelt will take a seat on the company’s board of directors.

“Advancements in lithium-ion batteries have become increasingly limited, and we are fighting for incremental improvements,” said Immelt. “I’ve seen first-hand that this is a huge opportunity that is also incredibly hard to solve. The team at Sila Nano has not only created a breakthrough chemistry, but solved it in a way that is commercially viable at scale.”

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Honda and Volvo add more electrification

Volvo XC90 plug-in hybrid charging up Honda announced it’s going to expand its Clarity line to include an all-electric version and a plug-in hybrid next year. The latest version of the Honda Clarity will be available later this year any way you want it, as along as you want a fuel-cell vehicle. The other two variants will be ready in 2017. Honda’s goal is to have electrified vehicles, including plug-in hybrids and… Read More

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