by Benjamin Glick, Mergermarket

Gridtential Energy, a Santa Clara, California-based maker of lead acid and silicon wafer batteries, will pursue a Series C equity raise later this year as it expands its manufacturing partnerships ahead of a possible SPAC merger, said CEO John Barton.

A Series C could come in 2H22, he said, noting that Gridtential has a preference for strategics and institutional capital providers. While Barton told this publication in 2021 that the company was targeting a USD 15m-USD 20m capital raise, he said for this report that the company is still determining the amount.

Revenue figures were not disclosed, but the next funding round is expected to bring the company to profitability, Barton said.

Gridtential has raised USD 28m in capital to date and holds 72 patents for its lead and silicon battery technology. Investors include Silicon Valley Bank, August Capital, ReneSola [NYSE:SOL], 1955 Capital, East Penn, Crown Battery and the Roda Group. East Penn and Crown Battery are also manufacturing partners.

The company takes lead batteries, the same kind found in most cars on the road today, and turns them into long-lasting, high-power sources of energy with their advanced “bi-plate” technology. Most of the company’s batteries are assembled by its manufacturing partners around the world.

Gridtential’s batteries can be used to power small vehicles like scooters and golf carts, but the main uses for the company’s products are in what are called “deep cycle” applications in vehicles. This includes car functions that don’t use power from the alternator, such as the ignition system and door locks.

Proceeds from the Series C will go toward expanding Gridtential’s product line, Barton said. Currently, the company offers its Silicon Joule 24-volt advanced lead battery, but more funding will allow it to offer batteries in any two-volt increment ranging from 12 to 48 volts, Barton said.

Being able to produce batteries with a wide range of voltages allows Gridtential’s partners to design batteries best suited for their end customers, Barton said. He estimates the market for batteries will grow from USD 50m today to more than USD 85bn by 2026.

The additional capital will also help the company reach more OEM manufacturing partners and invest more in its supply chain, according to Barton.

Barton also told this publication last year that Gridtential could pursue an exit with a Special Purpose Acquisition Company (SPAC) or other means after its Series C. The company is still monitoring the possibility of a SPAC merger, but Barton said it’s not actively pursuing an exit.

Gridtential wants to deepen and expand relationships with its manufacturing and OEM partners that largely produce its products, Barton said. The company is in talks with multiple potential partners, and could add one or two more “large players and fast-moving smaller players” this year, he added.

In addition to East Penn and Crown Battery, the company’s manufacturing partners include Leoch International Technology [HKG:0842] and Power-Sonic. Gridtential also supplies batteries to large automakers, but Barton declined to disclose names.