The Electric: Northvolt’s Setback Points to a Broader Threat to EV and Battery Startups https://lnkd.in/eyKUFzqN
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The EV hangover is upon us. As Amrith Ramkumar has written, the days of several once high-flying players in the EV ecosystem seem numbered. The time of low interest rates and excess funding around SPACs is behind us, and as Warren Buffet once said, with the tide going out we now see who's been swimming naked. New entrant OEMs especially may have underestimated the multi-faceted challenges around leveraging new technologies, scaling capital-intensive production, navigating an evolving geopolitical and regulatory landscape, and catering to new customer demands. To be certain, one of the earliest hurdles to overcome eventual failure and to de-risk the business model is getting a handle around product costs and getting to positive gross margins. BOM or direct material costs are especially tricky to optimize for newer players who have smaller volumes and a limited track record with suppliers. At #rolandberger we've helped tackle many of these challenges across the EV and lithium-ion battery value chain. Reach out if your organization is looking to understand how we can help! Brandon Boyle Isaac Chan Ram Kidambi Norman Firchau Michelle Drew Rodriguez Carsten Bock Dr. Christian-Simon Ernst Max Gustafson Kyle Gordon
At least 18 EV and battery startups are in danger of running out of cash by the end of next year, our WSJ analysis finds. Investors are learning that identifying the next Tesla is incredibly difficult. With Shane Shifflett:
These Tesla Wannabes Are Running Out of Road
wsj.com
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General Partner at Automotive Ventures | Author of the book "The Future of Automotive Retail" | Author of the weekly "Intel Report": sign-up at automotiveventures.com
At least 18 EV and battery startups that went public in recent years were at risk of running out of cash by the end of 2024 as of their most recent filings, according to a The Wall Street Journal analysis. These companies attracted investors with bold promises to transform the industry and fight climate change with their electric trucks and SUVs. That was before they stumbled amid rising costs and manufacturing problems. The median stock among the companies that the Journal evaluated is down more than 80% from its market debut, and even further from its peak. The slide has wiped out tens of billions of dollars in market value in just a couple of years. https://lnkd.in/e2CCagNH
These Tesla Wannabes Are Running Out of Road
wsj.com
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#ACTexpo here are my three takeaways. 🤨 Hydrogen: Heavy Truck industry is determined to make Hydrogen work... but chemistry and economics of making H2 remains T.B.D. 🔌 Charging-as-a-Service: Truck OEMs and Logistics companies realize what Automakers have learned, Charging Infrastructure is key to EV adoption so they're taking more responsibility for it. ⌛ EV Startups: Need to keep pushing for production deals/sales before legacy truck makers catch-up (window is quickly closing). Several announcements were made marking their transition from concept to production.
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CEO OneD Battery Sciences, Inc. (HQ Palo Alto, Silicon Valley + subs in Moses Lake WA and Munich Germany)
I think that Steve LeVine is reporting correctly and precisely on an important topic: the gaps between various technical or commercial claims made by various EV battery technology startups and the reality of technology adoption in the EV supply chain. It really does not matter how much cash is raised and at what valuation: no one can make a viable “baby” in four months instead of nine months (regardless of the amount of cash in the bank or the valuation). Even claims by Tesla about using metallurgical grade silicon in dry coated electrodes were overly optimistic. The only correct way to view the challenges (in my humble opinion) and to create a reasonable path to adoption is to understand three basic principles: (1) The incorporation of any new technology into the EV battery supply chain is a step-by-step journey of solving a myriad of problems and “learning by doing”. The technology stack for EV batteries is continuously evolving with stringent sets of specifications where everything is tuned up to increase performance, while reducing risks and costs. Too many claims are based on testing cells with specs that have nothing close to that of commercial cells. (2) The economics of EV batteries are completely different from that of other applications (whether consumer or eVTOL, etc.). The idea that new technologies can be introduced at a premium pricing and over time be broadly adopted is no longer reality. The economics must include comparison with global alternatives and must price the cost of capital, the cost of capital depreciation, and the costs of risks (whether failure risks or IP risks). (3) The only viable way for paving the way to broad adoption is collaboration with large industrial partners along the entire EV supply chain. Too many startups are trying to do too much by themselves. Focus is key, whether in terms of technical work or business development activities. A few areas of specialization and a few key industrial partners. Less is more. Just my 2 cents.
Batteries, EVs, the future. I run The Electric. Sign up: subscriptions.theinformation.com/newsletters/the-electric
Exclusive: Struggling to meet their promise, battery startups that went public in the 2020-21 mania have sometimes stretched the truth of their progress. This week, we look at two of them: FREYR Battery and QuantumScape. Last week, Freyr announced a critical breakthrough in automating production of its semisolid battery. My sources say there is progress, but workers continue to intervene to make the line work. Whether it can reach high speed remains a question mark. Two years ago, QuantumScape said its lithium metal battery worked with no external pressure—thought to be impossible—and charged in 15 minutes. Last month, the company came clean: It's now trying to get somewhere close with 0.7 atmospheres of pressure and 15 min charging. It's in a six-layer cell, and aiming for 24 layers. Energy density is at an unremarkable 800 to 850 wh/l. The Electric.
Exclusive From The Electric: Two Battery Startups Shade the Truth on Their Progress
theinformation.com
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🚗 Electric Vehicle Startups are booming! 🔋 Over 35 EV-makers have collected over $10M funding in the last years 💰 Over $45B have been invested in newly established EV manufacturers in the past 5 years. Chinese manufacturers lead with $25B, followed by US startups with $16B. 💶 The European EV landscape is dominated by traditional OEMs which pushes new players to focus on different value pools within the EV ecosystem (e.g. Charging) Learn more on the development of the Mobility ecosystem here: https://lnkd.in/eDzP_4bT #Mobility Oliver Wyman
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Once-celebrated EV startup files for bankruptcy. #EVs touted as zero carbon, low cost, new tech, universally desirable, and profitable to make. But truth: EVs are egregious carbon emitters, expensive, old tech, widely undesirable, and value destroyers for automakers. Mandates can’t save EVs.
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Transformative Growth in the Electric Vehicle Ecosystem! 🚘 Startups are revolutionizing the EV landscape with cutting-edge technologies and strategic partnerships. Discover how these innovative players are driving growth and reshaping the future of transportation. Is your team ready to capitalize on the EV revolution? Learn more in our latest report! 🔗https://hubs.la/Q02H4DFw0 #ElectricVehicles #EVRevolution #StartupInnovation #SustainableMobility Robin Joffe | Nimisha Iyer | Prajyot Sathe | Subhash Joshi | Naynish Kulkarni | Shylesh Narayanan | Manek Kohli | Partha B
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Batteries, EVs, the future. I run The Electric. Sign up: subscriptions.theinformation.com/newsletters/the-electric
Exclusive: Struggling to meet their promise, battery startups that went public in the 2020-21 mania have sometimes stretched the truth of their progress. This week, we look at two of them: FREYR Battery and QuantumScape. Last week, Freyr announced a critical breakthrough in automating production of its semisolid battery. My sources say there is progress, but workers continue to intervene to make the line work. Whether it can reach high speed remains a question mark. Two years ago, QuantumScape said its lithium metal battery worked with no external pressure—thought to be impossible—and charged in 15 minutes. Last month, the company came clean: It's now trying to get somewhere close with 0.7 atmospheres of pressure and 15 min charging. It's in a six-layer cell, and aiming for 24 layers. Energy density is at an unremarkable 800 to 850 wh/l. The Electric.
Exclusive From The Electric: Two Battery Startups Shade the Truth on Their Progress
theinformation.com
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Entroview Raises $1.6M to Revolutionize Battery Diagnostics for Gigafactories and Automotive Companies — PRBuzz.co — The #Seed #Round was #Led by #AFI Ventures and Rethink Ventures PARIS, #June #4 #2024 Entroview, a pioneering #deeptech #startup specializing in #battery #software diagnostics, announces #today that they raised $1.6M to revolutionize battery diagnostics for gigafactories and #automotive companies. The seed round was led by AFI Ventures - the early-stage #impact #arm of Ventech, and Rethink Ventures, and marks a significant #milestone in the company's #mission to #transform the #Electric #Vehicle #landscape with #advanced diagnostic software #solutions The #funding will be #used to expand its team, further develop its software, and scale its operations to meet the growing demand for advanced battery diagnostics solutions. Entroview was also named a finalist in the Grand Prix ACF AutoTech contest, which is judged by some of the most prestigious executives in the automotive industry in France. The global battery market is set to reach $400 billion by 2030, driven by the construction of numerous gigafactories. Batteries are key to the EV industry and comprise 30%-50% of the vehicle's cost; however, batteries are still experiencing significant inefficiencies. This results in substantial material losses and unpredictable lifespans, posing challenges to the second-hand EV market and battery second-life applications. Entroview provides deep insight on the internal state of batteries in real-time and provides a unique edge that goes beyond data analysis alone. With this insight, OEMs and cell producers can make informed decisions and drive innovation in battery management. Entroview provides physics-based software solutions that diagnoses batteries through the entire value chain with applications already tested by top gigafactories and automotive companies across Europe. "We are impressed by Entroview's unique approach of using patented entropy method analysis for batteries," stated Jens-Philipp Klein, Co-Founder & General Partner at Rethink Ventures. "Applied in battery production, Entroview has the potential to significantly reduce production scrap and speed up end-of-line inspection, raising significant economic and sustainability benefits for gigafactories." The solution provides users with insightful diagnostics, including: Charles Fourault, Partner at AFI Ventures, added: "We are very pleased to support the entire Entroview team in this seed funding round. In a very short time, Entroview has successfully secured numerous POC
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Entroview Raises $1.6M to Revolutionize Battery Diagnostics for Gigafactories and Automotive Companies — MediaContacts.co — The #Seed #Round was #Led by #AFI Ventures and Rethink Ventures PARIS, #June #4 #2024 Entroview, a pioneering #deeptech #startup specializing in #battery #software diagnostics, announces #today that they raised $1.6M to revolutionize battery diagnostics for gigafactories and #automotive companies. The seed round was led by AFI Ventures - the early-stage #impact #arm of Ventech, and Rethink Ventures, and marks a significant #milestone in the company's #mission to #transform the #Electric #Vehicle #landscape with #advanced diagnostic software #solutions The #funding will be #used to expand its team, further develop its software, and scale its operations to meet the growing demand for advanced battery diagnostics solutions. Entroview was also named a finalist in the Grand Prix ACF AutoTech contest, which is judged by some of the most prestigious executives in the automotive industry in France. The global battery market is set to reach $400 billion by 2030, driven by the construction of numerous gigafactories. Batteries are key to the EV industry and comprise 30%-50% of the vehicle's cost; however, batteries are still experiencing significant inefficiencies. This results in substantial material losses and unpredictable lifespans, posing challenges to the second-hand EV market and battery second-life applications. Entroview provides deep insight on the internal state of batteries in real-time and provides a unique edge that goes beyond data analysis alone. With this insight, OEMs and cell producers can make informed decisions and drive innovation in battery management. Entroview provides physics-based software solutions that diagnoses batteries through the entire value chain with applications already tested by top gigafactories and automotive companies across Europe. "We are impressed by Entroview's unique approach of using patented entropy method analysis for batteries," stated Jens-Philipp Klein, Co-Founder & General Partner at Rethink Ventures. "Applied in battery production, Entroview has the potential to significantly reduce production scrap and speed up end-of-line inspection, raising significant economic and sustainability benefits for gigafactories." The solution provides users with insightful diagnostics, including: Charles Fourault, Partner at AFI Ventures, added: "We are very pleased to support the entire Entroview team in this seed funding round. In a very short time, Entroview has successfully secured numerous POC
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