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Scoop: Cadenza pursuing Series C for explosion-proof batteries

Alan Neuhauser
Apr 19, 2023
Illustration of a battery with a dollar bill wrapped around it.

Illustration: Aïda Amer/Axios

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.
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