GM's plan is nothing but good news for start-ups like Envia Systems, who learned today it would be the recipient of a $17 million investment coming from the car maker. Envia, who manufactures lithium-ion cathode technology will give GM in return the right to use the technology.
According to initial information, the cathode technology made by the company uses inexpensive materials, and at the same time capable of storing more energy, which would allow a lower number of cells use per battery, hence a lower cost.
“Skeptics have suggested it would probably be many years before lithium-ion batteries with significantly lower cost and higher capability are available, potentially limiting sales of electric vehicles for the foreseeable future,” said Jon Lauckner, president of GM Ventures, who announced the investment. “In fact, our announcement today demonstrates that major improvements are already on the horizon.”
The $17 million to be invested in Envia by GM are backed by Asahi Kasei, Asahi Glass, Bay Partners, Redpoint and Panagea Ventures. The moment when the first Envia products get to go into a car is still a mystery.
“With our high-capacity manganese rich cathode material, Envia is addressing two key issues in the next-generation battery cells – higher capability and lower cost,” said Atul Kapadia, Envia Systems founder.
“The investments announced today from GM and the two new strategic investors, demonstrate the excitement around our technology, as well as the importance of the challenge."
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