A range of new materials and technologies could yield vastly improved batteries for purposes including electric vehicles and grid storage. 

Improved battery technology has the potential to improve a range of applications, from the flexibility of our power grids, to the durability of consumer electronic devices and functionality of next-generation electric vehicles. To understand the appeal, it is best to understand how today’s batteries work. Most are constructed with an alkaline metal called lithium, favoured for its ability to store large quantities of electricity. Power is produced when a device is connected to the battery terminals – the cathode and the anode – allowing lithium ions to flow through a liquid electrolyte inside the battery. But electrolytes can also be a potential safety hazard – if too much heat is generated in the solution, the battery can ignite. This has already caused problems for consumer electronics producer Samsung, which was forced to recall its Note7 smartphone after handsets began bursting into flames. Safety, then, is a major driver for corporate venturing investment in new battery technologies, but there are others. Capacity is a concern as applications become more demanding. Consumers yearn for smartphones that last for weeks rather than hours, while electric vehicles must operate over distances similar to those of conventional vehicles if they are to secure widespread adoption. The changing nature of the energy mix itself is also a factor, in addition to the need for better performance from grid storage units. Growing roles for intermittent renewable inputs such as wind and solar as well as electricity produced by households are big CVC drivers, in addition to the growing number of electricity customers globally. The challenge Depending on the application, a host of materials and innovations could fundamentally change how batteries are manufactured. These range from simple supercapacitors intended to sustain minute power requirements over longer periods, to paper-based designs offering a biodegradable option in challenging operational environments. But some are sceptical such innovations can be translated into commercial success, and there is a sense that it has been a struggle to monetise new battery technologies. According to GCV Analytics, the value of corporate-backed deals for battery-related technologies has varied year to year, slumping to $93m in 2016 from $415m in 2015 before recovering to $625m in 2017 and $288m so far in 2018. Keith Gillard, general partner at advanced materials-focused and corporate-backed VC fund Pangaea Ventures, said the battery segment remained a “challenging space” associated with incremental gains and “less venture dollars”. He added: “Batteries are always a high percentage of our new dealflow every month but…

Subscribe to go deeper

GCV subscribers get access to all our proprietary data and deep-dive articles, as well as the global directory of CVC investors.



Not sure if you have a subscription?