Standard Energy Secures $8.9 Million in Series C Funding

Standard Energy, a developer specializing in vanadium ion battery technology, has announced the successful completion of an $8.9 million Series C funding round led by SoftBank Ventures Asia.

The South Korea-based firm highlights key benefits of its batteries compared to lithium-ion alternatives, including a reduced risk of thermal runaway and the relative accessibility of vanadium as a raw material.

Addressing Potential Lithium Shortages

The ease of sourcing vanadium presents a significant advantage, particularly as electric vehicle manufacturers anticipate potential supply constraints with lithium-ion batteries.

However, Bu Gi Kim, CEO of Standard Energy, clarified that their technology isn't intended to directly replace lithium-ion batteries, but rather to work alongside them.

Complementary Battery Technologies

Vanadium ion batteries offer superior energy density, performance characteristics, and enhanced safety features.

Their primary limitation lies in their larger physical size compared to lithium-ion counterparts.

Targeting Stationary Energy Storage

Lithium-ion batteries will remain the preferred choice for mobile applications like electric vehicles and portable consumer electronics, such as smartphones.

Conversely, vanadium ion batteries are ideally suited for "stationary" applications, including wind and solar power plants, and high-speed charging infrastructure for EVs.

Standard Energy anticipates an upcoming deployment of its batteries at an ultra-fast charging station located in Seoul.

Company Background and Growth

Established in 2013, Standard Energy originated from research conducted at the Korea Advanced Institute of Science and Technology (KAIST) and the Massachusetts Institute of Technology (MIT).

To date, the company has secured a total of $22.5 million in funding.

Expanding Energy Storage Systems Market

A key target market for Standard Energy is the rapidly expanding energy storage systems (ESS) sector.

Market projections indicate substantial growth, from $8 billion currently to an estimated $35 billion within the next five years.

Addressing Lithium-Ion Instability

Kim explained that numerous renewable energy projects have faced delays or cancellations due to inconsistent performance from lithium-ion batteries.

While vanadium ion batteries may not achieve the same compactness as lithium-ion, ESS projects and renewable energy installations typically offer sufficient space for integration.

Rigorous Testing and Validation

Standard Energy has accumulated over one million hours of battery testing data, encompassing laboratory evaluations, certified performance assessments, and real-world operational trials.

The company expresses confidence that this comprehensive data will demonstrate the viability and appeal of vanadium ion battery technology to potential customers.

SoftBank Ventures Asia's Perspective

Daniel Kang, a senior partner at SoftBank Ventures Asia, stated that the existing ESS market has been characterized by imbalances stemming from escalating demand and concerns regarding product safety and efficiency.

He believes that Standard Energy is poised to establish new benchmarks for the global ESS market through its innovative material science, design expertise, and robust manufacturing capabilities.