Element Energy, A Pioneer In Battery Storage Technology, Secures $28M Series B Growth Capital
Capital raise follows Element Energy's procurement of over 2.5 GWh of EV batteries to be redeployed in utility-scale energy storage applications
Matt Murphy, President and CEO of Marvell Technology, joins Element Energy Board of Directors
MENLO PARK, Calif., Dec. 14, 2022 /PRNewswire/ -- Element Energy ("Element"), a Menlo Park-based advanced battery management technology company, today announced the first close of $28 million in Series B financing. The round is co-led by one of the largest clean energy generation companies and Cohort Ventures, a technology-focused venture capital firm with U.S. military roots. The round included additional investment from existing strategic backers LG Technology Ventures, Edison International (NYSE: EIX), Prelude Ventures, and Radar Partners.
Element Energy also announced that Matt Murphy, President and Chief Executive Officer of Marvell Technology (NASDAQ: MRVL), a leader in data infrastructure semiconductor solutions with approximately 7,500 employees and fiscal 2022 revenue of $4.46 billion, has joined the company's Board of Directors.
Launched in 2019 by a seasoned team of leading electrical engineers and electro-chemists, Element has created an adaptive battery management system (BMS) to provide active monitoring, in-the-field diagnostics, predictive intelligence, and distributed control of large-scale battery systems – resulting in dramatically improved total system performance (energy throughput, system life and economics) and safety, all delivered on a cost-competitive basis with traditional systems. The initial deployments of Element's BMS will be used to scale the deployment of second-life batteries. Following these deployments, Element will offer its technology solutions broadly across first and second-life energy storage and electric vehicle applications.
Dr. Tony Stratakos, CEO and Co-Founder, Element Energy, said, "Our technology unlocks significant improvements in battery safety, energy throughput and system life, enhancing the value proposition of batteries across many systems including first and second-life grid assets, electric vehicles and more. We are thrilled to be implementing our technology at-scale with GWh, grid-connected deployments planned in 2023 and 2024. We are grateful to have the confidence of our investor base that includes world-renowned renewable energy technology suppliers, asset owners, developers and investors. After ten years of hard work and $50 million of R&D investment in developing our technology, we are taking big strides to speed the adoption of clean energy and clean transportation."
The Series B funding provides Element with growth capital for continued investment in assets, logistics and infrastructure related to upcoming utility-scale deployments of second-life EV batteries. Further, the funding will support continued growth of the mission-oriented Element team.
Recently, Element secured over 2.5 GWh of EV batteries, and the U.S. Department of Energy announced a $7.9 million award to Element for a planned 50 MWh battery project to be deployed alongside a wind generating facility in Texas. This project deployment is believed to be the largest installation to date of second-life EV batteries on the U.S. power grid.
Following deployment of its multi-gigawatt secured pipeline beginning in 2023, Element will continue to work with strategics including automotive OEMs and gigafactories on additional second-life asset deployments, first-life battery energy storage systems, direct integration into electric vehicles and more.
"Element Energy has created the battery management hardware and software needed to enable efficient battery reuse at scale, and provide affordable, clean electricity for a broad range of energy storage and EV applications," said Matt Murphy, President and CEO, Marvell. "I am excited to join the Board as Element launches into the next phase of utility-scale deployment of its technology."
Widespread global adoption of electric vehicles is creating a large, emerging second-life battery market opportunity for the power sector to harness still-useful batteries at the end of vehicle lives to decarbonize the power sector. McKinsey estimates the global second-life battery market volumes available for redeployment to be more than 200 GWh by 2030, with the U.S. having an estimated 40 GWh per year of supply.
Second-life redeployment of batteries to maximize the "life-cycle harvest" of existing retired EV batteries has an opportunity to offer considerable environmental benefits through reduced emissions, lower raw material requirements and decreased energy needs. By deploying 40 GWh of second-life batteries into utility-scale applications, the U.S. can directly displace 10 million metric tons of carbon dioxide emissions annually. Further, the U.S. can avoid mining, processing and purchasing raw materials from unreliable foreign supply chains, which can save more than 11 million pounds of lithium and 20 million pounds of cobalt, along with the emissions and energy requirements of this value chain.
Element Energy is an advanced battery management technology company founded in 2019 and headquartered in Menlo Park, California. We utilize proprietary hardware and software algorithms to improve the safety, intelligence, and economics of large-format battery systems. We seek to offer our technology solutions broadly across first and second-life energy storage and EV applications. Our shareholder base includes world-renowned renewable energy technology suppliers, asset owners, developers and investors. To learn more about Element Energy, visit ElementEnergy.com.
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