Elbow Beach Capital, a decarbonisation and sustainability investor, announced further backing for battery tech company Anaphite. This £1.6 million investment round is a collaborative effort between private investors and a £685k grant funded through the Investor Partnerships Future Economy program established by Innovate UK.
The grant aims to accelerate the development of Anaphite’s dry-coating technology, a potential game-changer in EV battery production. This technology promises to significantly reduce manufacturing costs by up to 40%, paving the way for wider EV adoption.
Earlier this year, International Battery Company plugs in $35M funding to electrify India’s EV mobility landscape with a Gigafactory. Moreover, InMotion Ventures also plugged in $1.2M funding for tech startup focused on lithium battery sustainability.
Elbow Beach Capital backs Anaphite’s grant funding
Elbow Beach Capital played a key role in securing the grant by providing an advanced subscription for Anaphite’s Series A funding round. Wealth Club, a high net worth service, also participated significantly, reflecting strong support for the company. This round follows Elbow Beach Capital’s initial backing in 2022, leading Anaphite’s £4.1 million seed investment round.
Jon Pollock, CEO of Elbow Beach Capital, highlighted the importance of Anaphite’s technology in accelerating EV adoption and achieving net zero targets. He emphasised that cost reduction is essential for making EVs more accessible to consumers, especially during a time of rising living costs.
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’s dry-coating technology offers a more sustainable alternative. This method eliminates the need for drying ovens, reducing energy consumption by up to 90% and minimising the environmental impact. Additionally, it avoids the use of hazardous solvents, making the entire process cleaner and safer.
Anaphite’s dry-coating technology
Anaphite’s unique approach utilises specially formulated “Dry Coating Precursor powders” (DCP) to facilitate the dry-coating process. These DCP powders are designed to customer specifications, allowing for optimal battery formulations while maintaining performance. Anaphite’s technology unlocks the potential of dry-coating, reducing battery cell manufacturing costs by up to 40%, ultimately making EVs more affordable and accessible.
Project goals
This project aims to demonstrate that Anaphite’s dry-coated cathode can match the performance of the state-of-the-art wet-coating method, but without the associated energy and cost drawbacks. The project will focus on scaling Anaphite’s dry electrode production process and validating its performance on industry-standard equipment. Additionally, Anaphite will build relationships with key players specializing in dry coating technologies.
Anaphite is actively collaborating with major automotive manufacturers, battery cell producers, and electrode material suppliers to further develop and tailor their technology for individual customer needs. An industrial advisory board will guide the project, providing valuable feedback on performance targets to ensure robustness throughout the process.
What we think of Anaphite
Anaphite is currently in the process of raising a Series A round of investment. These funds will be used to scale up production of their composite materials, design and validate the dry-coating process, paving the way for full-scale production at customer sites. The company also plans to participate in automotive New Product Introduction (NPI) programs for dry-coated cathodes by 2025. This will enable Anaphite’s technology to be integrated into commercial EVs by 2028, directly contributing to reducing production costs and energy consumption in EV battery manufacturing.
Joe Stevenson, CEO of Anaphite, expressed confidence in the company’s strong team and intellectual property position. He emphasised Anaphite’s commitment to enabling a step-change in battery manufacturing through dry electrode coating, with the dual benefit of reducing environmental impact and accelerating EV adoption.
This investment by Elbow Beach Capital and the grant funding from Innovate UK mark a significant step forward for Anaphite’s dry-coating technology. With successful implementation, this technology has the potential to revolutionise EV battery production, making EVs more affordable, sustainable, and accessible to consumers worldwide.
