CoreShell to Reduce US Battery Prices

The Pivotal Role of China in the Electric Vehicle Revolution

The shift towards electric vehicles is fundamentally shaped by developments in China. Extensive subsidies there have not only bolstered domestic automakers but have also stimulated the entire battery supply chain. These financial incentives, combined with decades of focused industrial policy aimed at securing critical mineral supplies, have positioned American and European automotive manufacturers at a disadvantage.

Graphite Dependence and a Potential Solution

Consider graphite as a prime example. Currently, every lithium-ion battery, irrespective of its specific chemistry, incorporates graphite in its anode, with Chinese companies controlling 99% of the global graphite anode material production, as reported by Benchmark Mineral Intelligence.

According to Jonathan Tan, co-founder and CEO of Coreshell, establishing graphite production within the United States inevitably leads to higher costs. “To be competitive in the U.S. or Europe, a technical advantage or material differentiation is essential,” he explained to TechCrunch.

Coreshell believes it has identified such an advantage. Instead of directly competing with Chinese graphite producers, the company is pursuing an alternative strategy: substituting graphite with its uniquely coated silicon.

Securing Funding for Expansion

To facilitate wider distribution of its materials to automakers, Coreshell has successfully raised $24 million in a Series A2 funding round, as exclusively revealed to TechCrunch. This round was spearheaded by Ferroglobe, Coreshell’s silicon supplier, and included contributions from Asymmetry Ventures, Entrada Ventures, Foothill Ventures, Helios Climate Ventures, Lane Ventures, Translink Investment, Trousdale Ventures, and Zeon Ventures.

The Promise of Silicon Anodes

Silicon anodes have long been recognized as a potential replacement for graphite. They possess the capacity to store approximately ten times more electrons than graphite anodes, reducing the overall material requirements for each cell. However, silicon’s inherent brittleness has presented a significant challenge in battery applications.

Companies like Sila and Group14 have developed methods to create silicon anode materials that resist crumbling, and are currently scaling up their production capabilities. However, the specialized silicon required for these materials is expensive to produce, limiting their initial adoption to luxury vehicle manufacturers such as Mercedes and Porsche.

Coreshell’s Approach to Silicon Stabilization

Coreshell asserts its ability to utilize more affordable metallurgical-grade silicon, which Ferroglobe is equipped to supply entirely from its U.S.-based operations. By applying its proprietary coating to small silicon beads, Coreshell has achieved a method of stabilizing the silicon, preventing degradation over the 1,000+ charge-discharge cycles expected from a typical EV battery.

The startup produced its initial 60 amp-hour sample batteries for automakers in December, and currently operates a four megawatt-hour production line to meet the demand for testing. Tan anticipates securing agreements with major automakers within the next year.

Cost and Performance Advantages

By leveraging metallurgical-grade silicon, Coreshell aims to offer a cost-competitive alternative to Chinese graphite while simultaneously enhancing battery performance. The company claims that combining its silicon anode with a lithium-iron-phosphate (LFP) cathode can deliver comparable performance and range at a lower cost than existing high-performance cells utilizing graphite anodes and nickel-manganese-cobalt (NMC) cathodes.

Furthermore, automakers seeking increased performance and range can pair Coreshell’s silicon anode with an NMC cathode. “It simply elevates the range capabilities of vehicles,” Tan stated, adding that “while a 500-mile range is appealing for the luxury market, the mass market requires a 300-mile range vehicle that is significantly more affordable and profitable for the industry. This is our primary focus.”

A Key to Profitable EV Sales

Tan believes that providing automakers with a superior alternative to Chinese graphite is crucial for achieving profitability in EV sales.

“Currently, Chinese manufacturers are dominating the market with inexpensive products,” he observed. “To remain competitive, what is truly needed is an inherent technical or material advantage – something that results in a lighter, lower-cost battery.”