Exclusive: Recurrent raises $16M for used EV battery data
EV battery data startup Recurrent has raised a $16 million Series A round to expand its used EV battery reports, the company tells Axios.
Why it matters: The funding comes as the market for used EVs is set to soar this year at a time when the nascent ecosystem requires more transparency and standards.
Details: Seattle-based Recurrent raised the funds from lead investor ArcTern Ventures. The funding also included Automotive Ventures, Goodyear Ventures, Wireframe Ventures, and Pioneer Square Labs.
- Recurrent CEO Scott Case told Axios that the company currently runs battery condition reports on about a third of all used EVs that are for sale by dealers in the U.S.
- The company will use the funding to expand its footprint to cover over half of all used EV sales.
- About 40% of the costs of an electric vehicle are in the battery. As batteries are charged and discharged, they degrade over time.
Big picture: According to Recurrent's quarterly used EV battery report, sales of used EVs will increase this year by 40% — 100% from 2022.
- Starting late 2024, "a used electric vehicle will be sold every minute in the U.S.," says Recurrent.
- More, longer-range EVs are being sold in the used market, like Tesla's Model 3. Buyers can take advantage of a new $4,000 rebate for used EVs that cost less than $25,000.
Of note: The used EV market is growing far faster than the market for new ones, Case notes.
- Used Tesla Model 3s hitting the market means consumers could be able to buy an EV with good range for around $25,000.