(05/05/2021) Gridtential Energy, a Santa Clara, California-based lead acid and silicon wafer hybrid battery manufacturer, expects to pursue a Series C equity raise of USD 15m to USD 20m later this year as it looks to achieve full-scale operations in the year ahead, said CEO John Barton.

A SPAC merger or another exit could come later, he said, noting that he recently held conversations with special purpose acquisition companies, but the company prefers to get past the C round and commercialization before it entertains an exit, he added.

Gridtential expects to be profitable after its Series C round, as the company’s three battery lines will be in full production in the next year, Barton said. He declined to comment on annual sales or units sold.

The company could bring in new strategic and VC investors for the raise, he said. Its USD 12m convertible debt issue on 27 April attracted existing as well as new investors including Silicon Valley Bank, he said. The round also included individual investors David Marquardt of August Capital and Yumin Liu of ReneSola [NYSE:SOL] joined previous investors 1955 Capital, East Penn, Crown Battery and the Roda Group.

The convertible round and funds from the upcoming C round will be used to finalize production of its first generation Silicon Joule 24-volt advanced batteries.

Gridtential’s first battery provides twice the dispatch capacity at a 75% lower levelized cost of electricity (LCOE) to conventional lead batteries. They are used in wheelchairs, electric scooters and lawn mowers, Barton said.

Proceeds from the Series C will also fund the rollout of a smaller 12-volt battery cell for auxiliary electric vehicle use and powersports applications, as well as a larger 48-volt battery for EV, golf carts, hybrid vehicles and energy storage systems.

Barton said the SPAC model could be a good fit in the coming years as batteries are made via its partners’ global facilities for use in small and mid-sized commercial applications as well as electric vehicles.

Gridtential holds 69 patents for its Absorbent Glass Mat (AGM) lead and silicon battery technology. It produces at facilities of its global partners East Penn, Crown Battery, Leoch International Technology [HKG:0842] and Power-Sonic.

Other lead acid battery companies for EVs and small applications include Advanced Battery Concepts, EnerSys [NYSE: ENS], EaglePicher, Exide Technologies, Trojan

Gridtential to launch Series C this year; SPAC possible down road, CEO says

Proprietary Intelligence | Michael Schoeck

Battery and Zheijiang Narada Power Solutions [SHE:300086], according to the Consortium for Battery Innovation, a global battery industry association.

Wilson Sonsini Goodrich & Rosati is Gridtential’s law firm.