Valuations are soaring for EV battery makers

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.