Enevate Corp., the Irvine-based firm developing fast-charging batteries for electric vehicles, has signed its third production license agreement for its technology, and company officials say the firm plans to raise $75 million in a new funding round this year.
The batteries will be part of the EV wave sweeping the transportation industry.
While batteries using Enevate’s technology aren’t being marketed and sold now, CEO Bob Kruse predicts the company’s technology will be in batteries made for e-bikes and motorcycles in the coming months.
“We will be in commerce in the two-wheel market by the end of this year,” he told the Business Journal on June 13.
Batteries for cars pose a bigger challenge, in part because of the long lead time for the implementation of automotive innovations.
“We’re scaling up with some of our investors and partners to address autos a few years into the future,” Kruse said, without specifying a time frame.
Enevate in 2021 said it was preparing its technology for automotive use as early as the 2024-2025 model years.
The goal is charging an electric-powered automobile as quickly as one fuels up a car at the gas station.
Enevate is one of many companies comprising OC’s vast EV hub, ranging from electric-focused automakers Rivian Automotive Inc. (Nasdaq: RIVN), Karma Automotive, Mullen Automotive Inc. (Nasdaq: MULN) and Phoenix Motor Inc. (Nasdaq: PEV), to Israeli battery tech firm StoreDot, which said in January it’s opening a new research and development facility in Irvine.
Korea License
Enevate recently announced a new production deal with JR Energy Solution of South Korea, which is planning the start of its first manufacturing facility later this year.
“It’s another proof point that the technology is viable, and is scaling,” Kruse said. “It’s a huge step.”
No financial terms or revenue expectations were announced.
Kruse expects more licensing agreements in the future, with “several in development.”
Funding Plans
Kruse predicts Enevate may go public with a special purpose acquisition company—known as a SPAC—or a traditional initial public offering.
“We’re also an acquisition target for some of these big battery players,” Kruse said, adding the company and its investors will “evaluate any opportunity and act in the best interests of both the employee owners and my investor owners.”
Enevate has raised nearly $200 million to date, and it plans to raise an additional $75 million by the end of the year.
The company’s current investors include the Renault-Nissan-Mitsubishi Alliance; Samsung Venture Investment Corp.; and Fidelity Management & Research Co., among others.
“I expect we will have some additional investors when we close this next round,” Kruse said. He declined to specify Enevate’s revenue.
The Technology
Enevate’s batteries go by the name of “lithium-ion silicon-dominant.”
Enevate’s lithium-ion battery technology delivers up to 10 times faster charging than conventional lithium-ion batteries.
Its other benefits include improved safety and low-temperature operation for cold climates.
A recent series of lithium-ion battery fires has raised questions about the safety of the power source, an issue that Enevate says it has successfully resolved.
“Our technology has safety advantages over today’s technology, so we enable a safer cell,” Kruse said.
Irvine Base
Kruse took over as president and CEO in December, succeeding Robert Rango.
Last year, Enevate signed a lease for more than 125,000 square feet at 34 Parker Drive in the Spectrum area of Irvine.
The move is yet to take place. Kruse said Enevate is still in headquarters of about 20,000 square feet at 101 Theory in Irvine, and the move has been delayed.
“If you look at what’s happened in the global economics, we’re kind of being prudent with what we’re doing and have obviously delayed that,” he said.
Enevate was advertising for five positions, including senior staff scientist and mechanical process engineer, on its website as of June 20.
The company also sees other markets for batteries using its technology, including power tools, hedge trimmers and boats.
