China currently controls much of the critical mineral supply chain needed to power clean energy technologies. One Chicago startup wants to change that.
After securing an oversubscribed $65 million Series B funding round announced on Tuesday, Chicago battery startup NanoGraf Corp. said it aims to get its batteries into the hands of its customers by the beginning of 2024. But first the company will validate its product with the U.S. military.
That’s according to CEO Francis Wang, who thinks 2023 will be a breakout year for the Chicago startup that’s building longer-lasting, higher-energy and higher-power lithium-ion batteries using patented silicon-anode technology.
“If you think about all those Midwest marquee names like Harley-Davidson, Caterpillar, John Deere — they are all companies that need to electrify, and there needs to be a supply chain that’s local to them. NanoGraf is looking to be the frontrunner for them,” Wang told Chicago Inno.
The new funding will be used to scale North American production of silicon anode, a key component in batteries, including those that power electric vehicles, at NanoGraf's new West Loop facility. The funding round was co-led by Volta Energy Technologies and CC Industries with participation from GIC, Emerald Technology Ventures, Material Impact, Arosa Capital, Nabtesco Technology Ventures and TechNexus. Existing investors including Hyde Park Angels, Evergreen Climate Innovations and Goose Capital also participated in the round.
Addressing supply chain bottlenecks
Securing more U.S. battery manufacturing is on the agenda for President Biden as well, who announced an initiative to strengthen crticial mineral supply chains in an effort to secure a reliable and sustainable supply of critical minerals used for power, electricity and electric vehicles so that the country is not dependent on unreliable foreign supply chains.
While less than 1% of the vehicles on the road in the U.S. are electric, the raw number of EVs is rapidly growing. The number of registered electric vehicles in the country increased to 1.45 million in 2021, up 419% from 2016, according to the U.S. Department of Energy, as nearly half of the passenger vehicles sold in the U.S. will be electric, plug-in hybrid or fuel cell by 2030, according to a study by BloombergNEF.
NanoGraf is taking a slower approach to the EV market than some of its competitors, however, after receiving a $1 million development contract from the Department of Defense in 2022 to create a longer-lasting battery for the Army. Wang envisions first supplying batteries to the military and to use that as a “stepping stone” to bigger things like electric vehicles.
“We raised far less money than our competitors, [and] we’re trying to take it step-by-step,” Wang said. “That first step for us is reaching premium markets, and the military is a big part of our story.”
