The Station: A Weekly Transportation Newsletter

The Station is a newsletter published every week, focusing on the evolving world of transportation. Subscribe here — simply select The Station — to have it delivered directly to your inbox each weekend. 

Greetings to both regular subscribers and new readers! Welcome to The Station, a newsletter committed to exploring the current and emerging methods of moving people and goods between locations.

A Shift in Format & An Exclusive Interview

This week’s edition features a modified structure to accommodate an insightful interview with Mike Lelli, Senior Manager of Advanced Battery Cell Technology at General Motors (GM). Consequently, the usual comprehensive roundup of weekly events is abbreviated.

However, the standard format will be reinstated in the subsequent issue.

GM’s Partnership with SolidEnergy Systems

Last week, GM President Mark Reuss revealed a collaborative effort with SolidEnergy Systems (SES), a company originating from research at MIT. This partnership centers on enhancing the energy density of lithium-ion batteries.

The joint venture will involve the construction of a prototyping facility located in Woburn, Massachusetts, with the goal of producing a high-capacity, pre-production battery by the year 2023.

A History of Collaboration

As highlighted by a reader, this partnership represents a logical progression of GM’s existing involvement with SES. GM Ventures, the venture capital division of the automaker, made an initial investment in SES five years ago.

Notably, Rohit Makharia, previously a GM engineer and now an investment manager at GM Ventures, currently serves as the Chief Operating Officer (COO) at SES. This demonstrates a substantial and ongoing relationship between the two organizations.

Featured Interview: Q&A with Mike Lelli

Read the full Q&A with Mike Lelli below.

Stay Connected

Feel free to reach out via email at kirsten.korosec@techcrunch.com with your feedback, critiques, or suggestions. You can also connect with me directly on Twitter — @kirstenkorosec.

Q&A: GM’s Battery Development Strategy

Following the announcement of a partnership between GM and SolidEnergy Systems, a discussion was held with Mike Lelli, GM’s senior manager of advanced battery cell technology, to gain insight into the automaker’s future battery initiatives.

The primary focus of the conversation was to determine whether SES technology would be integrated into the subsequent iterations of Ultium batteries, beyond the initial generation powering vehicles like the GMC Hummer. Understanding GM’s broader approach to battery innovation was also a key objective.

The following is an edited transcript of that interview, condensed for clarity.

Energy Density and Cost Reduction Goals

TECHCRUNCH: GM has publicly stated a goal of doubling energy density and achieving a 60% reduction in battery costs. Is collaboration with SolidEnergy Systems specifically aimed at realizing the next generation of Ultium batteries?

LELLI: The partnership with SolidEnergy Systems involves establishing a prototype production line in Massachusetts. This line will be dedicated to the development and construction of this novel battery technology.

Exploring Additional Battery Technologies

TECHCRUNCH: Is GM actively evaluating other battery technology startups to accelerate research and development efforts?

LELLI: Further announcements regarding potential collaborations are forthcoming. Currently, research continues on lithium-metal batteries and related technologies within our internal R&D facilities. We are simultaneously investigating various technologies, including high-voltage cathodes, advanced electrolytes, dry processing techniques, and battery raw material optimization.

Synergies Between GM and SES

TECHCRUNCH: GM possesses substantial intellectual property in lithium-metal battery technology. How does SES complement GM’s existing capabilities?

LELLI: Both organizations bring unique strengths to the table, making this a mutually beneficial arrangement. SolidEnergy Systems is a highly innovative company with expertise in lithium metal anode technology, as well as manufacturing processes.

They also demonstrate proficiency in electrolyte development, an area where GM also holds significant IP. We currently have 49 patents and over 45 pending applications in the lithium-metal space, reflecting our long-term commitment to this technology. This isn’t a recent endeavor; it’s a field we’ve been actively pursuing for an extended period.

Reducing Reliance on Critical Materials

TECHCRUNCH: What is GM’s strategy for minimizing the use of nickel and cobalt in battery production?

LELLI: During last year’s Ultium battery announcement, we emphasized the importance of precious metal reduction. We highlighted our NCMA cathode composition – nickel, cobalt, manganese, and aluminum – which enables a greater than 70% reduction in cobalt content through the incorporation of aluminum.

Our team consistently focuses on optimizing raw materials, reducing the reliance on expensive and scarce resources. This includes research into cathode active materials, separators, electrolytes, anode materials, and manufacturing processes – both wet and, ideally, a more cost-effective dry process.

The collaboration with SolidEnergy Systems allows us to integrate any of our developed cathodes with the lithium metal anode. The primary objective of our work with SolidEnergy is to successfully implement lithium anode technology, paving the way for further cost reductions and decreased dependence on critical battery materials.

The Importance of the Anode and Electrolyte

TECHCRUNCH: Is the anode the primary factor in achieving increased energy density?

LELLI: The electrolyte is equally crucial. It’s not simply a commodity component; its electrochemistry profoundly impacts cell performance.

Cell lifespan is heavily influenced by the electrolyte’s properties and its interaction with materials like lithium. Achieving high energy density with lithium requires designing a cell that maintains performance over numerous charge-discharge cycles, necessitating a comprehensive understanding of all cell components.

An electrolyte is therefore an extremely critical element in this process.

SES’s Client Base

TECHCRUNCH: Is SolidEnergy Systems exclusively working with GM, or are they collaborating with other automotive manufacturers?

LELLI: SolidEnergy Systems is free to work with other OEMs, and we are open to exploring collaborations with other technologies. We are not imposing any restrictions on SolidEnergy Systems’ partnerships.

Projected Range of Next-Generation Ultium Batteries

TECHCRUNCH: What range can be anticipated from the next generation of Ultium batteries?

LELLI: A range of 500 to 600 miles is conceivable with lithium metal batteries, though the actual range will depend on the vehicle’s application. A battery installed in a truck will likely have a different range than the same battery in a smaller car. The final range will be determined by the specific vehicle model, but 500 to 600 miles represents a realistic target.

Vehicles Utilizing Ultium Technology

TECHCRUNCH: Beyond the GMC Hummer, which vehicles have been identified to receive the first generation of Ultium batteries?

The Cadillac Lyriq and the Cruise Origin are slated to be among the initial vehicles to incorporate this technology.

Recent Industry Acquisitions and Funding Rounds

Earlier in the year, a prediction was made regarding significant growth for Via, and that forecast has proven accurate. The company, initially an on-demand shuttle service, has evolved into a comprehensive mobility-as-a-service provider.

Via has been actively expanding its reach, securing contracts with numerous cities worldwide, and is now furthering its growth through strategic acquisitions.

The acquisition of Remix, a startup specializing in mapping software for urban transportation planning and street design, was completed for $100 million in a combination of cash and equity.

Remix will operate as a subsidiary of Via, retaining its distinct brand identity. All 65 employees of Remix, including co-founders Tiffany Chu, the CEO, and Dan Getelman, the CTO, will continue in their roles.

Remix excels in the area of planning, while Via possesses strong capabilities in software development and operational execution. This acquisition is expected to complement Via’s existing business offerings and broaden its customer base, which currently includes over 350 local governments across 22 countries.

Further expansion from Via is anticipated. Additional acquisitions and potentially an initial public offering are possibilities for the company, which achieved a $2.25 billion valuation following a $400 million Series E funding round last year.

Notable Funding Announcements …

Damon Motors, a company focused on electric motorcycles, secured over $30 million in funding through a bridge round. Key investors included Benevolent Capital, SOL Global Investments, and Zirmania.

FlexClub, a car subscription startup based in South Africa and established in 2019, raised $5 million in a mix of equity and debt. This seed extension brings the total funding received by FlexClub to more than $6 million. The company has recently expanded its operations into Mexico.

Optibus, a software-as-a-service provider specializing in transit solutions and headquartered in Israel, successfully raised $107 million in a Series C funding round. This round was co-led by Bessemer Venture Partners and Insight Partners.

Populus AI, a San Francisco-based startup founded in 2017, has secured $5 million in funding from Storm Ventures and Magna, alongside existing investors Precursor, Relay Ventures, and Ulu Ventures. To date, the company has raised nearly $9 million.

Zego, an insurtech company that initially focused on providing flexible motorbike insurance for gig economy workers, has raised $150 million. DST Global spearheaded the Series C funding round for the London-based company, resulting in a $1.1 billion valuation and achieving unicorn status.

General Catalyst, with founder and MD Joel Cutler joining Zego’s board, was among the new investors. Zego has broadened its services to encompass a variety of tech-driven commercial motor insurance products.

Exploring the Volkswagen ID. 4 in Detail

Image Credits: Volkswagen

Abigail Bassett, an experienced automotive journalist and World Car Juror, was recently engaged to evaluate several key vehicles released in 2021. Last month, Tamara Warren, a seasoned reporter covering both the automotive and technology sectors, provided a review of the Aston Martin DBX, a model vital to the manufacturer’s continued success.

This time, Bassett provides an in-depth examination of the Volkswagen ID. 4. This is a fully electric, five-seater crossover vehicle, with a base price of $33,995, excluding any applicable federal or state incentives.

The significance of the ID. 4 cannot be overstated. Volkswagen, initially exploring the electric vehicle market, is now heavily investing in this technology as a cornerstone of its future strategy.

Does the ID.4 meet expectations? Bassett conducted testing over three separate periods. A full reading of her article is recommended, but for those with limited time, here’s a concise summary: The Volkswagen ID.4 successfully integrates technology, comfort, and aesthetics at a competitive price point.

It delivers robust technology without being overly complex for typical crossover consumers, with a notable exception. The process of locating and connecting to external charging stations can be cumbersome and lacks the simplicity desired by many users.

Further details can be found by following the link below.