Anaphite

Anaphite raises $13.7 million to scale dry-coating technology and drive down production costs for all EV batteries‍

‍The company is transforming electrode production in lithium-ion batteries and beyond 

• Anaphite offers an industry-leading solution to the challenges of dry coating cathodes with its chemical compositing process to make dry coating precursor powders.
  
  
• The patented technology has the potential to make EV battery manufacturing  30% less carbon intensive and 40% cheaper, and the UK-based company is already working with global car and battery cell manufacturers.
  
  
• This Series A funding round is co-led by World Fund, Europe’s leading climate VC, and Maniv, a globally renowned transportation-focused fund - along with a cohort of top decarbonisation investors to enable the company to scale-up production at a commercial facility and make key hires.

• Deployed at scale, Anaphite’s technology can save carmakers billions of dollars annually and drive down the cost of EVs for consumers, accelerating the global adoption of EVs and other modes of electrified transport. 
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Berlin, September 27, 2024: Anaphite, which specialises in production technology for battery electrodes, today announced that it has raised a $13.7 million (£10.4 million) Series A round. The funding was co-led by World Fund, Europe’s leading climate VC, and Maniv, a global early-stage VC investing in the decarbonisation of transportation and digitisation of its value chains. A cohort of top climate investors also joined, including EEI and Nesta, with further participation from existing investors Elbow Beach Capital and Wealth Club.

Anaphite, launched in 2018 by chemist Sam Burrow (CTO) and physicist Alexander Hewitt (COO), has patented chemistry-based technology with the potential to make EV battery manufacture 30% less energy intensive and up to 40% cheaper. This represents a breakthrough for the battery sector, and Anaphite is actively working with leading battery cell manufacturers and car OEMs to implement this technology. Delivered at scale by manufacturers worldwide, Anaphite's technology would reduce the cost of EVs for consumers - thereby helping to accelerate the global adoption of EVs and the transition to an eco-mobility future.

The funding round was co-led by World Fund and Maniv, with participation from Elbow Beach Capital and Wealth Club, who significantly extended their respective shareholdings in the business. EEI, Japan’s leading venture capital firm exclusively focused on the environment and energy sectors, also participated. The round represents EEI’s first investment in a UK-based company. Nesta, the UK innovation agency, also invested for the first time.

The fresh capital injection will enable Anaphite to scale-up and expand their in-house dry coating capability, and fully commission a plant with the capacity to deliver tonnes of the company's patented composite cathode material. The funding will also support extensive new hires and further R&D investment to expand its technology portfolio.  

A dry coating revolution: Why Anaphite's technology represents a breakthrough for the EV battery sector and our planet
Improving batteries and making them cheaper to produce is one of the greatest manufacturing challenges of our era, and Anaphite's technology represents a breakthrough. 

Electrode manufacturing has historically been challenging and expensive, representing a major cost driver in modern battery production. Anaphite introduces a unique chemical compositing process, delivering a proprietary "precursor powder" that ensures reliable dry coating for high speed, high performance electrode production. Dry coating with Anaphite technology has the potential to save about 30% of the energy usage and 15% of factory floor space traditionally used in cell manufacturing - all of which greatly reduces the cost and environmental impact of making a lithium-ion battery. Moreover, by dramatically reducing the energy required for electrode manufacturing – up to 90% – Anaphite will fundamentally alter the carbon profile of electric vehicles. 

‍How Anaphite got started

Anaphite started out as a student passion project for Hewitt and Burrow, who met at the University of Bristol. They initially worked on developing methods of homogeneously incorporating graphene into metal oxide composites, and soon identified lithium-ion batteries as an ideal application for their technology. 

In 2018, the duo filed for their first patent, raised £60,000 in pre-seed funding and moved into an incubator lab, Science Creates, to work on developing their process. By 2021 they had applied their technology to lithium-ion battery cell electrodes, secured a further £2.7 million in seed and grant funding, and proven the application of their composites in dry coating feasibility trials with the University of Warwick. Following the close of another £4.1 million fundraise in mid-2022, the team hired experienced CEO, former Johnson Matthey commercial strategy director, Joe Stevenson. Over the past 18 months, the company has commissioned pilot-scale manufacturing and pivoted to focus solely on the dry-coating of electrodes for lithium-ion cells. The company will now use its fresh funding to secure global car manufacturing clients and commercialise the technology at scale. 

‍“We have the opportunity to create the new global standard for EV battery electrode production, and there is a huge appetite for it” - Alexander Hewitt, Anaphite Co-founder and COO 

Alexander Hewitt, Anaphite Co-founder and COO, said: "This funding will help Anaphite scale up and become a partner of choice for the global market. Li-ion battery electrodes have been produced at scale the same way for decades, and with the advent of the sustainable energy revolution, there is an acute hunger for change and improvement in the industry. Our technology has the power to revolutionise the electrode production process while lowering costs and emissions for EV and cell manufacturers, and we can't wait to see it in action.”

‍Anaphite CEO, Joe Stevenson, said: "Securing capital from investors that are renowned specialists in mobility, energy, and environmental investment around the world, is a huge validation moment for Anaphite, and affords us the resources to extend our technical lead in the market. We are thrilled that transportation expert Michael Granoff has joined the company’s board, and that we are EEI's first UK-based investment. We look forward to working with all our new partners as we take this next step in our global journey." 

‍Sam Burrow, Co-founder and CTO at Anaphite, commented: “There are two key steps in the production of a dry coated cathode. A mixing step, followed by a coating step. One of the major unsolved challenges in the successful commercialisation of dry coated cathodes is the mixing step. We’ve applied advanced physical chemistry to this materials handling problem, and we’ve achieved things the industry has previously thought impossible. Our unique approach and technology portfolio give the EV supply chain the flexibility it needs, removing many barriers to high-yield manufacturing and battery design. It’s exciting to be applying chemistry to such a meaningful manufacturing challenge”

‍Craig Douglas, Partner at World Fund, said: "Anaphite's unique technology and smart, tenacious, market-savvy team are set to disrupt the global EV market. Their technology is genuinely market-leading, and will help the world transition to an eco-mobility future. The team has already made breakthroughs in lithium-ion battery production, and their technology will be applicable to a wide range of new battery technologies, including sodium-ion and solid state. Anaphite has the potential for exponential growth, and we at World Fund are proud to be supporting them as they grow." 

‍Michael Granoff, Founding Partner at Maniv, commented: “While the cost of batteries has declined precipitously over the last two decades, the raw materials, supply chains, and assembly have all become anomalously concentrated in a single country, China.”We are confident that Anaphite’s proprietary technology finally moves the needle towards a more distributed and resilient battery supply chain, helping Western battery companies and automakers compete in the decades ahead.”

ENDS

‍About Anaphite

Anaphite is the global leader in chemical technologies for dry coating of Lithium-ion battery electrodes. Dry battery electrode coating is the future of battery manufacturing, delivering up to 40% reduction in production costs and 30% reduction in energy consumption. Anaphite's proprietary chemical compositing process produces fully formulated Dry Coating Precursor (DCP^®) powders, ready for dry coating. Anaphite's DCP^® powders are tailor-formulated to customer specifications, helping them transition from today's energy intensive manufacturing processes to more efficient dry processes, without compromising product performance.

About World Fund 

‍World Fund is the leading Europe-focused climate venture capital fund established by Daria Saharova, Danijel Višević, Tim Schumacher, and Craig Douglas. World Fund is investing in scalable businesses with significant climate performance potential (CPP). The focus is on the sectors with the greatest need for decarbonization technologies: energy, buildings, manufacturing, transport, food, agriculture, and land use. World Fund is backing those entrepreneurs who are building tech for a regenerative world.‍

About Maniv

Maniv is a leading venture investor partnering with early-stage transportation technology startups around the world. Focused on the decarbonization of the transportation and logistics sectors as well as the comprehensive digitization of those value chains, Maniv has built a portfolio of over forty companies accelerating the cleaner, safer, more efficient and more accessible movement of people and goods. With over USD $320m under management, Maniv is backed by world-class institutional investors alongside a broad consortium of strategic partners from relevant industries including major carmakers, tier-1 suppliers, the world's largest fleets, energy and infrastructure giants, and more.

About EEI

EEI (Energy and Environment Investment) is a leading Japanese climate tech investor with strong focus on energy and mobility and in generating impact. EEI has nearly 20 years experience in venture capital, currently deploying its fifth fund. EEI works actively with its portfolio companies, both Japan and abroad, using its extensive network with corporates in Japan and in Asia. EEI's current AUM is $380 million and is one of the largest venture capital funds in Japan.

About Elbow Beach Capital

Elbow Beach Capital is a London-based venture capital company focussed on early-stage climate technology, sustainable energy and decarbonisation businesses. Their vision is to support the transition to Net Zero while improving living standards and growing the economy. Elbow Beach Capital backs early-stage businesses whose technologies have the potential to solve our planet’s biggest challenges. Elbow Beach Capital is one of the UK’s most active specialist seed investors in climate technology backing some of the most innovative and disruptive technologies in the sector. They support exceptional founders and their teams in scaling their businesses through capital investments coupled with ESG and go-to-market expertise. 

‍About Wealth Club

With approximately 14,000 clients investing a total of £1.5 billion to date into the funds and private company deals through our platform, Wealth Club is the UK’s largest online investment service for wealthy and sophisticated investors. They offer Venture Capital Trusts, EIS and SEIS investments, forestry, Inheritance Tax Portfolios and AIM ISAs. As well as tax efficient investments, we also offer unique investment opportunities that are not normally available to retail investors, such as private equity.

Wealth Club selects tech led commercially compelling early stage companies in a range of sectors we believe capable of significant scale and shareholder value creation while having a positive impact on society.

‍About Nesta

Nesta Impact Investments provides financial, knowledge and network capital to innovative tech ventures that are changing the world for good. We look to back businesses in edtech, foodtech, healthtech, climate tech, the future of work and productivity, that are closely aligned to Nesta’s mission impact goals.