In the competitive field of lithium-ion batteries, the quest for cost reduction is driving significant advancements.
Pressure to Lower Prices
Battery producers face intense demands from automakers to decrease prices while enhancing performance. Over the past decade, they’ve met these challenges, reducing battery pack costs from $780 to $139 per kilowatt-hour, as reported by BNEF.
This reduction has facilitated the swift rise in electric vehicle market share.
Stagnation in Cost Reduction
However, the decline in battery pack costs has recently plateaued. Without further reductions, electric vehicles may remain unaffordable for many consumers.
One innovative startup, Addionics, believes the key to further cost reductions lies in an often-overlooked battery component: the foil current collector.
Enhancing the Current Collector
Currently, these collectors resemble kitchen aluminum foil and are designed to collect electrons from active materials, which store the ions that produce power. “This design hasn’t seen significant changes in the last 30 years,” remarked Moshiel Biton, co-founder and CEO of Addionics, in an interview with TechCrunch.
Introducing Textured Foils
Biton’s firm proposes that adding texture to the foil could be revolutionary. “The idea isn’t new,” he noted, “but commercializing it at scale has proven challenging.”
Previous efforts either involved simple modifications like punching holes or complex approaches such as growing spongy materials. The Israel- and U.K.-based startup has devised a method to create copper and aluminum foils with tiny holes and undulating peaks and valleys.
Advanced Manufacturing Techniques
For copper, which is used for the anode’s current collector, Addionics employs electricity to deposit copper ions into the desired structure.
For aluminum, used for the cathode’s electron collection, the startup utilizes electroetching. These methods are akin to those used in the semiconductor industry.
Benefits of Wavy Foils
The textured foil results in a three-dimensional current collector that enhances contact with the active material. This innovation, according to the company, leads to a more complex yet easily manufacturable material, improving battery performance and efficiency, and potentially doubling its lifespan.
It’s also compatible with various battery chemistries, with plans to customize collectors for different chemistries to optimize performance.
Financial Backing and Future Plans
Addionics recently secured $39 million in Series B funding, led by GM Ventures and Deep Insight, with participation from Scania, the Swedish commercial vehicle manufacturer.
The funds will accelerate the production of its current collectors and allow the company to explore new markets and regions, thereby mitigating risk, gathering more data, increasing traction, and expediting commercialization.
U.S. Factory and Domestic Production
Earlier this year, Addionics announced plans to construct a $400 million factory in the U.S. to manufacture its current collectors.
This move would enable battery packs and EVs containing these materials to qualify for more incentives under the Inflation Reduction Act, which promotes increasing domestic content through the decade.
Letters of Intent and Future Announcements
Addionics also revealed having letters of intent from U.S. automakers, though the specific companies remain unnamed. “We will disclose these details with the factory announcement,” Biton stated.
“But this round includes investments from two OEMs, offering insights into the customers we’re collaborating with.”