Green(er) batteries
The startups out to clean the battery supply chain
Last updated: 5 Aug 2022
Market 101
Once the darling of climate transition, the lithium-ion battery has lately turned into something of a problem child. The issue: mining rare raw materials like lithium, cobalt and nickel that are essential to this technology is linked to all sorts of environmental headaches, wild price swings and — in some cases — awkward questions around working conditions. Producing battery components for rechargeable vehicles is often a dirty business — and that’s before the materials are shipped halfway around the world for their final assembly.
The environmental toll in particular threatens to overshadow the lithium-ion battery’s key advantage: it stores a lot of energy for its weight. Luckily, a number of disruptive startups in Europe are riding to the battery’s rescue. Whether they’re racing to stop lithium-ion’s fall from grace or pushing for more common, and environmentally friendly alternatives to snatch its crown, their ultimate goal is the same: to restore batteries’ green credentials.
Early stage market map
Key facts
£250bn
Projected size of Europe’s battery market in 20301
60x
Projected increase in lithium demand in Europe by 20502
30%
Proportion of valuable materials required for lithium-ion batteries that could be covered by recycling old batteries by 2030
Trends to watch
1. Towards vertical integration
- Companies are increasingly shortening their supply chains by focusing on vertical integration and local procurement.
- Many will rely on partnerships to obtain specialised expertise along the production chain, offering an opportunity for startups to step in.
2. Ramping up recycling
- With global recycling capacity currently exceeding end-of-life volumes, companies are struggling to obtain economies of scale and make recycling cost effective.
- As the uptake of batteries increases, startups may increasingly focus on second life applications, more sustainable recycling techniques or battery designs centered around recycling.
39 startups tracked by Sifted
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Average characteristics
Sifted take
Test. Lithium-ion batteries’ supply chains are under increasing pressure, but this has done little to slow their momentum, which is being driven by falling costs and proven scalability. For startups developing alternative technologies, the question is whether these can reach efficiency and cost effectiveness faster than lithium-ion batteries can make real progress on sustainability.
Rising stars
We identify companies as ‘rising stars’ using a number of criteria including founder backgrounds, investor track record, funding and valuation, and growth signals.
Has developed a technology that improves battery performance by immersing materials in nanoparticles that increase the electricity-generating surface area. The technology can be applied to existing batteries to alter their energy density - or any other structure and surface that can then be turned into a storage device.
Round
Seed
Valuation
€ 2.5m (est.)
Date
2020
Size
€ 5b
So you two dig up, dig up dinosaurs? Hey, you know how I'm, like, always trying to save the planet? Here's my chance. Life finds a way. Just my luck, no ice. What do they got in there? King Kong? Hey, you know how I'm, like, always trying to save the planet? Here's my chance.
Round
Seed
Date
2019
Size
€ 89k
You know what? It is beets. I've crashed into a beet truck. I gave it a cold? I gave it a virus. A computer virus. God help us, we're in the hands of engineers. Forget the fat lady! You're obsessed with the fat lady! Drive us out of here! Yeah, but John, if The Pirates of the Caribbean breaks down, the pirates don’t eat the tourists.
Round
Seed
Valuation
€ 123k
Date
2022
Size
€ 1k
Early stage startups to watch
ACELERON
Alternative battery technology
Easily recyclable lithium-ion battery
€2.4m
€2.3m
-
akksel
Second life
-
-
-
-
Akkurate Oy
Battery management
-
-
€1.2m
-
Albufera Energy Storage
Alternative battery technology
Aluminum-based battery
-
€470k
€50k
-
Altris
Advanced battery materials
Sodium-based cathode
€1.9m
€1m
€15m
Arroe
Battery management
-
€764k
-
Betteries AMPS
Second life
€2.1m
€2.1m
-
Bettery
Alternative battery technology
Redox flow battery
€150k
€50k
-
Breathe Battery Technologies
Battery management
-
-
-
-
BroadBit Batteries
Alternative battery technology
Sodium-based battery
€4.5m
€1m
€84m
Circulor
ESG certification
€17.7m
€16.5m
-
Circunomics
Second life
€2.3m
€1.8m
€9m
Duesenfeld
Battery recycling
-
-
-
-
Geyser Batteries
Alternative battery technology
Water-based battery
€2.5m
€1.1m
-
Minespider
ESG certification
€3.1m
€2.3m
€35m
Modo Energy
Battery management
€1.2m
€1.2m
-
Nanom
Advanced battery materials
Nano-enhanced materials
€2.7m
€2.5m
-
Nyobolt
Energy,Transportation
High-power ultra-fast-charging lithium-ion batteries
€21.7m
€10.8m
-
Europe’s success stories
Who early stage startups are up against
NAWA Technologies
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
- Has created a patented nanobased technology to develop ultracapacitors with ultrafast charging and a long lifespan
- Has begun manufacturing at its facility in France, which will ultimately produce 100,000 ultracapacitor cells per month at full capacity
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
- Is developing a ‘SuperBattery’ based on graphene that can be used in combination with lithium-ion batteries for ultrafast charging and higher energy density
- Plans to bring the technology to market in 2023 through partnerships with the Karlsruhe Institute of Technology and a leading automotive manufacturer
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
- Makes lithium-ion batteries with reportedly 80% less CO2 emissions than equivalent options
- Procures some of its refined materials from Scandinavia and integrates manufacturing, assembly and recycling facilities at its factory, which runs on 100% clean energy
Sources
Research report
New EU regulatory framework for batteries | European Parliament
News article
From dirty oil to clean batteries | 2020 | Transport & Environment
1, 2 Can giant gravity batteries also solve the planet’s waste problem? | March 2021 | Sifted
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