Axios Pro Exclusive Content

Valuations are soaring for EV battery makers

Chart: Axios Visuals; Data: PitchBook
Chart: Axios Visuals; Data: PitchBook

Median pre-money valuations in the electric vehicles sector reached a new high through the first half of 2022, propelled by surging demand for EV batteries and battery materials.

Why it matters: The jump in valuations defies an overall pullback in company funding — underscoring the intensifying arms race for battery supplies.

What's happening: The median pre-money valuation for EV financing deals jumped 58% in H1 compared to the prior year, per PitchBook data.

Driving the news: StoreDot and SES Energy Storage were among the battery companies that completed investment rounds in the first half of this year.

  • StoreDot, a lithium-ion battery technology developer, in March closed a $70 million Series D led by VinFast, with a $1.2 billion pre-money valuation, PitchBook says.
  • SES Energy Storage, a lithium-metal battery developer, in February claimed a $3.6 billion pre-money valuation. The company, an MIT spinoff, subsequently disclosed this summer that it was seeking a reverse merger.

👀 Of note: Svolt, an EV battery maker, has pegged its pre-money valuation at more than $7 billion. The Chinese company raised $3.26 billion as of January.

What we're watching: The Inflation Reduction Act is expected to further invigorate investor appetite across the electric vehicle supply chain, even amid uncertainty around some of the incentives contained in the bill.

Go deeper