Offgrid Raises $15M for Lithium-Free Battery Storage | India

The Rise of ZincGel: A Lithium Alternative for Battery Storage

Currently, lithium-based batteries are the predominant power source for numerous systems. However, the inherent drawbacks – encompassing unstable supply networks and limited operational lifespans – are becoming increasingly prominent concerns.

Offgrid Energy Labs' Innovative Approach

Offgrid Energy Labs, an India-based deep-tech startup, is focused on diminishing the reliance on lithium, particularly within the realm of battery storage solutions. The company, incubated at IIT Kanpur, has engineered a unique battery system utilizing zinc-bromine chemistry as a viable alternative to lithium-ion technology.

ZincGel: Performance and Cost-Effectiveness

Known as ZincGel, this system achieves 80-90% of the energy efficiency found in traditional lithium batteries. Importantly, it offers a substantially reduced levelized cost of storage, according to the startup.

India's Renewable Energy Expansion and Battery Demand

With global power demand escalating, nations are intensifying their efforts to broaden renewable energy storage capabilities. India, a key player in this movement, intends to increase its non-fossil energy capacity tenfold – from 50 gigawatts to 500 gigawatts – by the year 2030.

Addressing Supply Chain Challenges

New Delhi is also aiming for 236 gigawatt-hours of battery energy storage capacity by 2031-32, backed by a ₹54 billion (approximately $612 million) funding initiative announced in June to facilitate the development of 30 gigawatt-hour battery storage systems domestically. A significant obstacle, mirroring many global markets, is China’s dominant position in the lithium supply chain.

ZincGel's Potential to Mitigate Constraints

Offgrid Energy Labs believes its ZincGel battery technology can alleviate supply constraints by utilizing readily available materials and presenting a more economical alternative to lithium-based systems.

Series A Funding and Future Expansion

The startup has recently secured $15 million in Series A funding to expand its operations. Plans include constructing a 10-megawatt-hour demonstration facility in the U.K., anticipated to be operational by the first quarter of 2026.

Commercialization and Gigafactory Plans

Following the demonstration phase, the company intends to begin commercializing ZincGel, with a gigafactory in India planned as a subsequent step.

Financial Viability as a Key Factor

“We aim not only to fill a market gap from an application perspective, but also to ensure financial feasibility,” stated Tejas Kusurkar, co-founder and CEO of Offgrid Energy Labs. “Historically, there have been globally developed technologies and batteries with solutions, but their high cost has hindered widespread adoption.”

Founding and Early Development

Founded in 2018 at IIT Kanpur’s Startup Incubation and Innovation Center by Tejas Kusurkar, Brindan Tulachan, Rishi Srivastava, and Ankur Agarwal, Offgrid Energy Labs identified a need for safer, more durable batteries with a more accessible supply chain in the stationary storage market.

Intellectual Property and Safety Features

Over six years of development, the startup has secured over 25 IP families and more than 50 IP assets across key markets, including the U.S., U.K., India, China, Australia, and Japan. The battery’s zinc-bromide chemistry, coupled with a proprietary water-based electrolyte, minimizes the risk of fire.

Enhanced Performance Characteristics

ZincGel is designed for extended discharge cycles (6-12 hours) and boasts a lifespan twice that of a typical lithium-ion battery. A carbon-based cathode enables both rapid charging and discharging.

Competitive Landscape and Cost Reduction

While zinc batteries are not novel – with companies like EOS Energy Enterprises offering zinc-bromide-based solutions – Offgrid Energy Labs leverages patented assets to reduce production costs. The ZincGel batteries also minimize the need for graphite, further lowering expenses.

Customer-Centric Approach

“Ultimately, customers prioritize performance, price, or a combination of both,” explained Rishi Srivastava.

Adaptability and Operational Range

The technology is engineered for adaptability, allowing for battery optimization based on specific applications. This enables ZincGel batteries to function independently of environmental conditions, providing energy storage even in temperatures as low as minus 10 degrees Celsius.

Target Industries and Early Adopters

The startup is targeting industries committed to net-zero goals and seeking to maximize renewable energy integration through battery storage. Applications include peak shaving and decentralized, off-grid energy solutions. Shell and Tata Power are among the early testers, and discussions are underway with global players like Enel Group.

From Lab to Demonstration Facility

Currently, Offgrid Energy Labs manufactures its battery technology manually at a lab in Noida, Uttar Pradesh. The U.K. facility will serve as a platform to demonstrate the technology to potential customers next year.

Sustainable Manufacturing Practices

The U.K. facility is projected to have a carbon footprint 50% lower than a typical lithium battery gigafactory, achieved through simpler manufacturing processes that reduce both capital and operational costs.

Strategic Location Choice

The decision to establish the first facility in the U.K., rather than India, was driven by Europe’s robust ecosystem and established battery manufacturing hub. The presence of co-founders Kusurkar and Tulachan in the U.K. also facilitated local operations. However, India remains a key target market for commercialization in 2026.

Investment Details and Strategic Alignment

The Series A funding round was led by Archean Chemicals, a Chennai-based specialty chemicals manufacturer, which now holds a 21% stake in the startup. Ankur Capital also participated. Archean’s expertise in bromine manufacturing and supply chain management is considered a strategic asset.

Company Valuation

The post-money valuation of the startup is approximately $58 million.