MENLO PARK – Element Energy, a Battery Management Technology company, has closed $111 million in capital comprised of a $73 million Series B equity investment and a $38 million debt facility provided by Keyframe Capital Partners, L.P..
The Series B round is co-led by one of the largest clean energy generation companies in the U.S. and Cohort Ventures. Mitsubishi Heavy Industries, Ltd. (MHI), Drive Catalyst, FM Capital, and AFW Partners joined the Series B round, along with existing investors LG Technology Ventures, Edison International, Prelude Ventures, and Radar Partners. Debt and equity capital was provided by Keyframe, an investor with a broad mandate seeking to solve capital market challenges to unlock growth and propel innovation.
Founded in 2019, Element has developed proprietary hardware and software algorithms applicable to both first and second life batteries to improve visualization, battery safety, and efficiency. Element’s technology is being validated on a large scale with a 50 MWh pilot project in the United States, which is expected to be completed in early 2024. Element will collect necessary data through its pilot project, obtain UL certification, and proceed to commercialize the product.
Dr. Tony Stratakos, CEO and Co-Founder, Element Energy, said, “We founded Element with the mission to speed the adoption of clean energy with technology honed in the semiconductor industry. Seeing a soaring number of new battery storage installations, our market-leading partners are realizing the value of improving the safety, lifetime and efficiency of batteries. With the additional capital and global partnerships from our Series B, we will further invest in and deploy our technology across target markets and applications, including SaaS for existing and new energy storage systems, hardware and software for new energy storage systems, and full battery energy storage systems using second life batteries.”
Stratakos continued, “We have received and screened nearly 2 GWh of second life batteries to date and are diligently working with our partners towards deployment in utility-scale applications before the end of the year.”
MHI is investing in Element to advance MHI’s battery energy storage system technology and supply chain. MHI and Element also signed a memorandum of understanding (MOU) to develop affordable power system solutions for behind-the-meter applications.
“MHI is committed to the energy transition, and energy storage systems are an important piece of the energy transition equation. MHI is pleased to invest in Element Energy for their outstanding diagnostic and management technologies. We look forward to ongoing collaboration with Element Energy to provide affordable energy solutions in the behind-the-meter space worldwide,” said Shin Gomi, General Manager in Business Development, Growth Strategy Office of MHI.
In addition to deploying its technology to first and second life battery projects, Element will deploy its software as a service with a leading battery O&M provider. Element is also reviewing opportunities to apply its technology to electric vehicle batteries.