UK-based Anaphite, which specialises in production technology for battery electrodes, has raised $13.7 million in Series A funding. The round funding was co-led by World Fund, Europe’s leading climate VC, and Maniv, a global early-stage VC focused on decarbonisation of transportation and digitisation of its value chains.
A cohort of top climate investors also joined, including Japan’s only venture capital firm exclusively focused on the environment and energy sectors EEI, and UK innovation agency, Nesta, with further participation from existing investors Elbow Beach Capital, which led the £1.6 million round earlier this year and Wealth Club.
Funds utilisation
The fresh capital injection will enable Anaphite to scale up and expand their in-house dry coating capability, and fully commission a plant with the capacity to deliver tonnes of the company’s patented composite cathode material. The funding will also support extensive new hires and further R&D investment to expand its technology portfolio.
Craig Douglas, Partner at World Fund, said: “Anaphite’s unique technology and smart, tenacious, market-savvy team are set to disrupt the global EV market. Their technology is genuinely market-leading, and will help the world transition to an eco-mobility future. The team has already made breakthroughs in lithium-ion battery production, and their technology will be applicable to a wide range of new battery technologies, including sodium-ion and solid state. Anaphite has the potential for exponential growth, and we at World Fund are proud to be supporting them as they grow.”
Michael Granoff, Founding Partner at Maniv, commented: “While the cost of batteries has declined precipitously over the last two decades, the raw materials, supply chains, and assembly have all become anomalously concentrated in a single country, China.”We are confident that Anaphite’s proprietary technology finally moves the needle towards a more distributed and resilient battery supply chain, helping Western battery companies and automakers compete in the decades ahead.”
Innovation in EV battery manufacturing
Battery costs remain a major hurdle for large-scale EV adoption, typically accounting for up to 30% of the total vehicle cost. Reducing battery production costs is crucial for bringing down EV prices and increasing affordability.
The traditional wet-coating process used in battery manufacturing is energy-intensive and relies on harmful solvents. Anaphite introduces a unique chemical compositing process, delivering a proprietary “precursor powder” that ensures reliable dry coating for high speed, high performance electrode production.
Dry coating with Anaphite technology has the potential to save about 30% of the energy usage and 15% of factory floor space traditionally used in cell manufacturing. This approach greatly reduces the cost and environmental impact of making a lithium-ion battery. Moreover, by dramatically reducing the energy required for electrode manufacturing, up to 90%, Anaphite will fundamentally alter the carbon profile of electric vehicles.
How was the idea born?
Anaphite started out as a student passion project for Sam Burrow and Alex Hewitt, who met at the University of Bristol. They initially worked on developing methods of incorporating graphene into metal oxide composites, and soon identified lithium-ion batteries as an ideal application for their technology.
In 2018, the duo filed for their first patent and moved into an incubator lab, Science Creates, to work on developing their process. By 2021 they had applied their technology to lithium-ion battery cell electrodes and proved the application of their composites in dry coating feasibility trials with the University of Warwick.
In 2022, the company raised £4.1 million in funding and hired Joe Stevenson, the former Johnson Matthey commercial strategy director, as its CEO.
Alexander Hewitt, Anaphite Co-founder and COO, said: “This funding will help Anaphite scale up and become a partner of choice for the global market. Li-ion battery electrodes have been produced at scale the same way for decades, and with the advent of the sustainable energy revolution, there is an acute hunger for change and improvement in the industry. Our technology has the power to revolutionise the electrode production process while lowering costs and emissions for EV and cell manufacturers, and we can’t wait to see it in action.”
Anaphite CEO, Joe Stevenson, said: “Securing capital from investors that are renowned specialists in mobility, energy, and environmental investment around the world, is a huge validation moment for Anaphite, and affords us the resources to extend our technical lead in the market. We are thrilled that transportation expert Michael Granoff has joined the company’s board, and that we are EEI’s first UK-based investment. We look forward to working with all our new partners as we take this next step in our global journey.”
Sam Burrow, Co-founder and CTO at Anaphite, commented: “There are two key steps in the production of a dry coated cathode. A mixing step, followed by a coating step. One of the major unsolved challenges in the successful commercialisation of dry coated cathodes is the mixing step. We’ve applied advanced physical chemistry to this materials handling problem, and we’ve achieved things the industry has previously thought impossible. Our unique approach and technology portfolio give the EV supply chain the flexibility it needs, removing many barriers to high-yield manufacturing and battery design. It’s exciting to be applying chemistry to such a meaningful manufacturing challenge”
