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Solid-state ambitions

Illustration of a battery icon with hundred dollar bills as the bars indicating that it's full. 

Methane monitoring first

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Photo illustration: Shoshana Gordon/Axios. Photo: Ashley Cooper/Construction Photography/Avalon/Getty Images

Iridium alternative deal exclusive

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NYC's pension restrictions

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Temperature check

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Hot deals

It's personnel

Post of the day

A screenshot of a tweet quoting New York Gov. Kathy Hochul, who said at the Axios BFD summit on Oct. 22 that "I never used the word indefinitely" in reference to pausing congestion pricing. X user Jon Campbell then quotes Hochul from June 5, stating, "I have directed the MTA to indefinitely pause."

While battery and auto giants invest heavily in solid-state battery tech, a few brave upstarts are trying to break through.

Why it matters: So-called solid-state batteries can charge more quickly and have a longer range, which could help expand the market for EVs.

Driving the news: Battery startup Adden Energy has closed a $15 million Series A round to build a pilot production line for its solid-state batteries.

The round was led by At One Ventures and included Primavera Capital Group, Rhapsody Venture Partners, and MassVentures.

The tech at the core of Adden Energy's battery is a solid-state separator that the company calls "self-healing."

Context: Solid-state batteries have been in development for decades and swap out a traditional liquid electrolyte with a solid layer.

They typically use lithium metal for the anode, which gives batteries a longer range than lithium-ion, and can be charged more quickly. They can also be safer, since they don't have the flammable liquid electrolyte.

Reality check: Many companies have tried and failed to scale prototype solid-state batteries into commercial mass-market products.

Building and funding an early stage battery startup isn't for the faint of heart.

Lithium-ion batteries took many decades and billions of dollars of investment from Asian battery giants to grow into the current energy storage juggernaut.

State of play: Beyond Adden Energy, there's a handful of independent companies trying to produce solid-state batteries. 

QuantumScape, based in San Jose, Calif. and publicly traded, grew out of Silicon Valley and is trying to turn the corner on manufacturing. The company reports earnings today.

Solid Power, based in Thornton, Colo., was just awarded a $50 million grant to try to scale its manufacturing. 

Some companies are now developing semi-solid-state batteries, which use a hybrid design of solid and liquid electrolyte, as solid-state batteries face challenges scaling. 

The big picture: It's hard to compete with battery and auto giants like Toyota, Nissan and Mercedes-Benz that are investing heavily in solid-state battery technology.

Chinese auto and battery companies — including BYD, Chery, CATL, WeLion, Qingtao Energy and Ganfeng Lithium — are also plowing ahead on solid state.

At the same time, lithium-ion batteries continue to fall in price, making it harder for a new battery chemistry to compete.

1 big thing: Solid-state ambitions

The Energy Department this morning closed a $162 million loan guarantee for LongPath Technologies to expand its methane monitoring in big oil- and gas-producing basins.

Why it's the BFD: It's the first time DOE's Loan Programs Office has supported greenhouse gas emissions tracking projects.

Driving the news: LongPath plans to install 1,000 remote monitoring towers to track methane emissions in Texas, Colorado, and other oil and gas production regions.

The company also plans to expand its existing monitoring network from spanning a few hundred square miles to 24,000.

Context: Methane detection technologies have drawn steady attention from both investors and policymakers.

The Inflation Reduction Act in 2022 authorized the EPA to penalize fossil fuel producers for methane leaks, which are a potent emissions source and lost natural gas revenue.

The latest: LongPath and the DOE say that the company's laser-based tech provides cheaper and more precise monitoring than other methods, which can range from ground monitors to air-sniffing aircraft to satellites.

"One dollar of investment into monitoring, plus another dollar of investment into fixing the leaks, results in $5 to $10 of additional product that companies can sell," Loan Programs Office director Jigar Shah tells Axios.

"That's a pretty good return on investment."

Follow the money: LongPath has raised $34.5 million since it launched in 2017.

Funders include oilfield services company ProFrac, gas infrastructure giant Williams, and the Energy Department's ARPA-E program for novel tech.

2. The BFD: Methane monitoring first

Materials developer Calicat raised $3 million in a Series A extension, the company tells Axios.

Why it matters: The startup is pursuing an alternative to the rare element iridium, whose short supply threatens to limit green hydrogen production.

How it works: Devices called electrolyzers split the hydrogen and oxygen atoms in water, enabling production of what's dubbed green hydrogen because the process doesn't create heat-trapping carbon emissions.

Yes, but: Electrolyzers commonly rely on catalysts made from iridium, a mined element used in other sectors.

Driving the news: Calicat, a Caltech spinout formerly known as H2U Technologies, is using AI software to accelerate discovery and testing of potential iridium alternatives.

Catch up quick: This represents a second extension to a Series A it closed over two years ago, a spokesperson tells Axios, bringing the round's total to $18 million.

New investors Acario Innovation and Mol Switch, the corporate venture arms of Tokyo Gas and Mitsui OSK Lines, respectively, participated in the extension, joining existing investors Volo Earth Ventures, Dolby Family Ventures, Freeflow Ventures, Hess, Motus Ventures and Jericho Energy Ventures.

The original $11 million deal in February 2022 was led by Freeflow Ventures, Volo Earth, Hess and Motus Ventures. The company added another $4 million in May 2023, Calicat's spokesperson says.

What's next: Calicat is working on pilot programs with electrolyzer manufacturers in the U.S. and Europe. 

"These programs should mature into commercial deployments in mid-2025," the spokesperson tells Axios.

3. Iridium alternative deal exclusive

New York City wants to power down more of its private equity investments in the energy sector, according to a proposal from NYC Comptroller Brad Lander.

Why it matters: This would be the first such ban by a U.S. public pension system.

How it works: The rule would block certain NYC public pensions from making private market investments in midstream and downstream fossil fuel projects, such as refineries and export terminals.

4. NYC's pension restrictions

🏭 Verdagy's factories: Verdagy is celebrating the opening of its first factory to make its advanced alkaline electrolyzers near San Jose, Calif., today, while also prepping a second factory in Houston. 

Verdagy's CEO Marty Neese previously told Axios that the California factory was a former battery plant for Lucid, and it'll make the company's electrochemical cells.

Simultaneously, Verdagy is assembling a plant in Houston that would make more of the gear for the electrolyzer systems and help it stave off low-cost competition.

‍✈️ Air taxis get final rules: The Federal Aviation Administration yesterday issued long-awaited rules that will help pave the way for the commercialization of electric air taxis as soon as next year, colleague Joann Muller reports.

The measures include pilot qualification and training requirements, as well as minimum altitude and visibility standards. The rules may enable startups such as Joby Aviation and Archer Aviation to start operation in 2025.

🏛️ Permitting influence battle: The bipartisan Manchin-Barrasso permitting bill is attracting intense attention from energy lobbyists, Q3 federal disclosures show, as K Street prepares for the lame-duck session of Congress.

The impending 2025 tax battle royale is also beginning to show up in the energy industry disclosure forms. Our Energy Pro colleagues have the details.

☀️ Solar manufacturing win: The Treasury Department yesterday said that solar ingot and wafer production facilities and equipment qualify for a 25% investment tax credit under its final rules for the Section 48D tax credit, per our Axios Pro Energy Policy colleagues.

The industry has announced 21 GW of wafer production and 10 GW of ingot production — but only 3.3 GW of ingot and wafer capacity is under construction, according to solar trade group SEIA.

5. Temperature check

• Freeform, a Hawthorne, Calif., 3D metals printing startup, raised $14m from Nvidia and Boeing's AE Ventures. Go deeper

• Dunia Innovations, a German advanced materials discovery startup, raised $11.5m. Elaia and Redalpine led, joined by EIC, Pace Ventures, Kindred Capital, Deep Science Ventures, and Anglo American. Go deeper

• Carbon Ridge, an LA developer of modular CCS systems for maritime shipping, raised $9.5m led by Crosscut Ventures and Western Technology Investment. Insiders The Grantham Foundation, Berge Bulk, Rusheen Capital Management, Plug and Play Ventures, Katapult Ocean, Incite, Spitzer Industries and Canopy Generations Fund joined. Go deeper

• Measurable Energy, a U.K. smart outlet developer for energy management, raised £4 led by Vertex Exploratory Fund and insider Clean Growth Fund. Go deeper

• Autarkize, a German industrial decarbonization startup, raised €2.3m in seed funding led by High-Tech Gründerfonds, joined by Fair Capital Impact Fund, Interface Capital, Innovation for Impact and Floris Capital. Go deeper

• Energetic Capital, a Boston renewables financier, raised an undisclosed round from Greensoil PropTech Ventures, joined by insiders SE Ventures, MS&AD Ventures, Congruent Ventures and Muus Climate Partners. Go deeper

• MeliBio, an Oakland developer of bee-free honey, received an undisclosed investment from Future Food Fund, the VC arm of Japanese food distributor Oisix. Go deeper

• Agtonomy, an SF agriculture software developer, received an undisclosed investment from Allison Transmission venture arm Allison Ventures. Go deeper

• Stonepeak agreed to buy a 50% non-control stake in the Coastal Virginia Offshore Wind project from Dominion Energy. Go deeper 

• Alterra, an Akron, Ohio, plastic recycling tech developer, received an undisclosed investment from Infinity Recycling, LyondellBasell and Chevron Phillips Chemical. Go deeper

• Translational Development Acquisition, an energy infrastructure SPAC, filed for a $150m IPO. Go deeper

• Mexican building materials maker Cemex and U.K. chemicals producer Linde were selected to receive $157m from the EU Innovation Fund to install CO2 capture tech at a Cemex cement plant in Germany. Go deeper

• MetOx, a Houston developer of HTS wire for fusion energy production, was selected to negotiate $80m in U.S. Energy Department funding for a planned factory. Go deeper

• Focused Energy, an SF fusion developer, announced plans to build a $65m laser development facility in the Bay Area. Go deeper

• Moment Energy, a Canadian startup making energy storage systems from recycled EV batteries, was selected to receive $20.3m in U.S. Energy Department funding to open a U.S. factory. Go deeper

• Furno, a Mountain View, Calif., developer of sustainable cement production tech, received a $20m Energy Department grant to build up to eight micro-kilns at a Chicago concrete plant. Go deeper

• Lewis Ridge Pumped Storage received $12m toward a potential $81m in U.S. Energy Department funding for a 287 MW project in Bell County, Ky. Go deeper

• Swedish battery maker Northvolt closed a deal for a short-term capital infusion, per Reuters, citing business daily DI. Go deeper

• LA water company Cadiz and Spanish renewables developer RIC Energy announced an agreement to build a green hydrogen plant in California's Mojave Desert. Go deeper

• Natilus, a San Diego developer of a more efficient blended-wing aircraft, unveiled a rendering of its proposed 200-passenger airplane. Go deeper

6. Hot deals

• Joseph Clark joined Boston investment firm Anzu Partners as principal and SVP of capital solutions. Clark was market executive for J.P. Morgan's innovation economy group. Go deeper

• Albert Hofeldt was promoted to CTO of Stem, the SF energy software developer. Hofeldt was EVP of technology. Go deeper

• Martin Davis, EVP and chief information officer of Southern Company, is retiring effective April 1. Go deeper

October 23, 2024

1 big thing: Solid-state ambitions