EV battery innovator Addionics raises USD 39 million in series B funding

Israeli battery technology company Addionics has successfully raised USD 39 million in a Series B funding round. The investment was co-led by General Motors' venture capital arm, GM Ventures, and Israeli tech venture fund Deep Insight. Swedish truck manufacturer Scania, a subsidiary of Volkswagen's Traton, also participated in this substantial investment round.

Addionics, known for its innovative approach to battery technology, has developed porous, three-dimensional copper and aluminium electrodes for EV batteries. These advanced materials promise to revolutionise the EV battery landscape by offering multiple advantages over conventional technologies.

The company's electrode design is notable for its efficiency in material usage, requiring 60% less copper than traditional counterparts. This reduction in material not only contributes to cost savings but also aligns with sustainability goals in the automotive industry. Addionics claims that its technology can provide faster charging capabilities and increase EV range by an impressive 30%, addressing two key concerns in the widespread adoption of electric vehicles.

Financial projections from Addionics suggest that automakers could potentially save up to $7.50 per kilowatt-hour by implementing their technology. This cost reduction is particularly significant given the current challenges faced by traditional automakers in achieving profitability in their EV divisions.

Anirvan Coomer, managing director of GM Ventures, expressed enthusiasm about the investment, stating, "Addionics' current collector design shows promise in enabling improved battery performance at a lower cost. We are eager to support the company's growth and look forward to continuing to explore opportunities to collaborate in the future."

The funding comes at a crucial time for Addionics, as the company has recently announced plans to establish a $400 million factory in the United States. This facility, set to begin operations in 2027, aims to produce copper anodes for EV batteries with the capacity to supply approximately one million EVs annually.

Moshiel Biton, CEO of Addionics, provided insights into the company's roadmap, revealing that they plan to start delivering battery cells to automakers for testing in late 2024. Biton confirmed that the company is on track to achieve full-scale production by 2027 or 2028. He also noted that Addionics has been in discussions or collaborations with nearly all major automakers across Europe, Japan, and the United States.

Highlighting the significance of their technology in the current automotive landscape, Biton remarked, "Legacy automakers are losing money building EVs. Any technology that allows them to reduce cost and improve performance, that's the holy grail."

The investment in Addionics reflects the growing interest and urgency in the automotive industry to develop more efficient and cost-effective EV technologies. As traditional automakers struggle with the profitability of their electric vehicle lines, innovations like those offered by Addionics could play a crucial role in accelerating the transition to sustainable transportation.