Scoop: Cadenza pursuing Series C for explosion-proof batteries
Cadenza Innovation is raising up to $100 million in a Series C to manufacture lithium-ion batteries that the company says neither catch fire nor explode, Axios has learned.
Why it matters: Cadenza says its boom-proof batteries are especially suited for cities, where a series of deadly battery fires and explosions have sparked bans on e-bikes and other lithium-ion devices.
Details: Cadenza Innovation has received a signed term sheet from an investor, according to a person familiar with the matter. The person would not reveal the size of the investment.
- The Danbury, Conn.-based company is eventually seeking to raise $400 million to $600 million in the next couple of years to spend on manufacturing. It expects the bulk of that funding to come from state and federal sources.
- Cadenza to date has raised $30 million from venture firms, angels, and through self-funding. It says it's brought in another $200 million in "soft funding" from grants, awards and strategic alliances.
Catch up fast: Lithium-ion batteries are made up of cells. When one of those cells heats too quickly and catches fire, it can ignite adjacent cells — turning them into firecrackers in an event known as thermal runaway.
How it works: Cadenza's battery cells are insulated from one another, preventing potentially disastrous fires or explosions.
Zoom in: The company is targeting the residential, commercial and industrial markets, including in virtual power plant roles.
- Cadenza has deployed one of its larger 250 KWh batteries with the New York Power Authority. Cadenza CEO Christina Lampe-Önnerud installed a smaller unit in her home on Friday.