Energy storage system producer 24M Technologies spun out of lithium-ion battery maker A123 Systems today to become a separate venture.
The company raised a $10 million Series A funding round from Charles River Ventures and North Bridge Venture Partners.
The company raised an additional $6 million in a grant from the Department of Energy‘s Advanced Research Projects Agency – Energy (ARPA-E). The funding will help 24M develop batteries that can store more energy for a lower price.
24M’s technology, created in collaboration with A123 and MIT, combines the best of rechargeable batteries, fuel cells and flow batteries to create new energy storage systems. Specifically, the company wants to create batteries that improve on the energy storage capabilities of lithium ion batteries. 24M especially wants to target the transportation and electric grid industries, with the hope of creating more affordable and effective electric car batteries, some of which currently cost upwards of $10,000.
A123 will continue its involvement in the venture by helping with product development and commercialization. A123 will also receive a seat on 24M’s board of directors and an equity stake in the company.
The $6 million grant 24M received comes from the Department of Energy and its APRA-E program. It is intended to help 24M commercialize its products in collaboration with Rutgers and MIT.
Based on new, highly active nanoscale material initially developed at MIT, A123Systems’ low impedance Nanophosphate electrode technology provides a competitive advantage over alternative high power technologies. A123’s cell and electrode designs lower cost/watt and cost/watt-hour. They have higher voltage than other long-life systems, enabling lower pack cost. Their long life leads to reduced lifecycle and system costs resulting in greater overall price-performance . Competitors include Valence, Saft and Lion Cells.
Founded in 1970, Charles River Ventures is an early-stage venture capital fund that takes a value-added, hands-on approach to support its portfolio companies. Charles River Ventures is one of the nation’s oldest and most successful early-stage venture capital firms with approximately $2.1 billion under management. CRV is dedicated to helping exceptional entrepreneurs turn their ideas into the next category leaders in high growth technology and media sectors. Since its founding in 1970, CRV funds have been ranked among the industry’s...
North Bridge Venture Partners is an early-stage venture capital firm based in Boston, Massachusetts and San Mateo, California. Headquartered on both sides of the country, the firm spreads investments on the east and west coasts.
The Department of Energy’s overarching mission is to advance the national, economic, and energy security of the United States; to promote scientific and technological innovation in support of that mission; and to ensure the environmental cleanup of the national nuclear weapons complex.
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