The Weekly Deal CW10/24 - Volta Structural Energy

One startup, once a week. This week we talk about Volta Structural Energy, an Italian startup that aims to revolutionise the battery industry.

#mobility #sustainability #aerospace

🥜 In a nutshell

Company: Volta Structural Energy
Industry: Aerospace, Mobility
Sub-Industry: Structural Batteries
Year Founded: 2020
HQ: Milan, Italy
Stage: Pre-Seed
Founders: Tommaso Randolfi, Gabriele Consiglio, Chiara Mirani
Funding Amount: 1M
Main Investors: CDP Venture Capital Sgr, Leonardo S.p.A.

In a sentence: Volta Structural Energy pioneers structural batteries, utilising composite sandwich panels infused with sodium-ion technology to store electrical energy within the material itself, offering significant mass and volume reduction, high power, long-term durability, and enhanced safety across various industries including Aerospace, Automotive, Naval, and Robotics.

🔭 The Context

Volta Structural Energy emerges amidst a shifting landscape, where the imperative for sustainable energy solutions converges with the rising demand for electric mobility. As governments tighten emissions regulations and industries seek cleaner alternatives, Volta's focus on structural battery development signifies a crucial step forward.

The problem with current solutions

Before delving into Volta Structural Energy's innovative solutions, it's essential to understand the limitations of current battery technologies. Conventional lithium-ion batteries, while prevalent in electric vehicles (EVs) and renewable energy storage systems, face several challenges that hinder widespread adoption and sustainability:

1. Lithium-ion batteries often rely on cobalt, a finite and environmentally problematic resource primarily sourced from regions with questionable labor practices. This dependency on cobalt not only raises ethical concerns but also contributes to supply chain vulnerabilities and price fluctuations.

2. Lithium-ion batteries exhibit limited energy density, constraining their ability to store large amounts of energy within a compact space. As a result, EVs equipped with lithium-ion batteries may experience range anxiety, hindering mass-market acceptance and adoption.

3. Lithium-ion batteries are susceptible to thermal runaway and safety hazards, posing risks of fire and explosion under certain conditions. These safety concerns not only impact consumer confidence but also necessitate additional safety features and regulatory scrutiny, adding complexity and cost to battery systems.

4. The recycling infrastructure for lithium-ion batteries remains underdeveloped, leading to significant waste and environmental pollution. Improper disposal or recycling of lithium-ion batteries can result in hazardous materials leaching into soil and water sources, posing long-term environmental risks.

What is a Structural Battery?

Traditional batteries, while effective, often require dedicated space within a vehicle or device, adding weight and complexity to the overall design. In contrast, structural batteries seamlessly integrate energy storage capabilities into existing structural components, such as vehicle chassis, aircraft fuselages, or ship hulls.

This innovative approach not only maximizes space utilization but also enhances overall structural integrity and performance. By distributing energy storage across the entire structure, Volta's structural batteries offer unparalleled efficiency and versatility, enabling significant improvements in range, payload capacity, and operational flexibility.

In the automotive sector, where electric vehicles (EVs) are gaining traction, Volta's approach of integrating energy storage directly into structural components promises to revolutionize vehicle design. By eliminating bulky battery packs, Volta enhances driving range and overall efficiency.

This innovation extends beyond automobiles, with implications for aerospace and maritime industries striving to reduce reliance on fossil fuels.

Why Sodium-Ion?

Volta's sodium-ion chemistry offers a sustainable alternative to conventional lithium-ion batteries, addressing both environmental concerns and supply chain stability.

One of the primary benefits of sodium-ion batteries lies in their abundance and sustainability. Unlike lithium, which is often sourced from limited and environmentally sensitive regions, sodium is a plentiful and widely available resource, reducing concerns regarding supply chain stability and environmental impact.

Moreover, sodium-ion batteries exhibit comparable performance to lithium-ion counterparts in terms of energy density, cycle life, and safety. By leveraging sodium-ion chemistry, Volta Structural Energy not only enhances the sustainability of energy storage solutions but also expands the potential applications across a wide range of industries, from automotive and aerospace to grid-scale energy storage.

The result is the possibility to maximize the amount of storable energy and consequently the autonomy, within a given system, without compromising its mass or the volume necessary for the transportation of passengers or goods.

In summary, Volta Structural Energy operates within a dynamic landscape driven by environmental consciousness, regulatory mandates, and technological advancements. Its groundbreaking solutions have the potential to reshape mobility and accelerate the adoption of clean energy on a global scale.

🔍 Some Info

📈 Market Size → €52.5 billion

Volta targets a diverse market, including transportation on land, sea, air, and space. The estimated market value by 2030 is €52.5 billion, with potential for growth as our VSB technology enables electrification in sectors like heavy transportation and aviation. Volta plans to commercialize its technology in space and UAV sectors by late 2026, with a sizable Serviceable Obtainable Market (SOM) exceeding €300 million.

👨🏻‍🔬 Technology & IP → 1 patent granted

1 patent granted, 2 patents pending.

🛒 Business Model → B2B

Volta is adopting a B2B business model in which they will sell their structural batteries to manufacturers of satellites, electric aircraft and electric vehicles. Core business of Volta is the design and production of a multichemical structural battery platform.

🤝 Team → 3 co-founders + 2 full-time employees

Tommaso Randolfi (CEO), Gabriele Consiglio (CTO), Chiara Mirani (COO), Gianluca Longoni (Head of Product Development), Pietro Stilli (R&D Specialist Electrochemistry)

💰 Financials → 1M seed fund

1M seed fund plus eligibility for 270k grant from NODES (Ministry of Research and University-MUR innovation ecosystem). Cash from funds is being heavily injected into R&D activities and pilot line assembly. With its next funding round opening soon, Volta aims at the target of reaching kWh-range pilot line capacity within the end of 2026.

🥊 Competitors → No relevant competition in this niche

Structural battery is currently not available in the market with Volta being the first one with a go-to-market strategy for this new product. Volta pioneers the market with the first structural battery, offering unique advantages over other technologies. It boasts versatility in deployment, scalability with existing production techniques, non-Lithium-based chemistries, safety and repairability even after severe damage, and simplified design processes due to decoupled properties.

❓Q&A with the Team

I had the chance to ask some questions to Tommaso Randolfi (CEO) and Gianluca Longoni (Head of Product Development). The answers you will find below represent a summary of our interesting conversation.

1. Why are you the best team to build this?

Our team has a clear vision for the final product, bridging high-performance energy storage with structural components for aerospace, automotive, and naval applications. With backgrounds in structural engineering and diverse experiences in academia and space startups, we're well-equipped for the task. Drawing from expertise in electrochemistry and battery manufacturing, we're continuously refining our approach. Engaging with customers and scientific advisors like Prof. Riccardo Ruffo from the University of Milan Bicocca and Prof. Alessandro Airoldi from Politecnico di Milano, we're embracing a lean development process to bring this innovative product to market.

2. What progress has been made?

Our embryonal product pilot line, nearing completion, marks a significant milestone for us. By late June, we aim to bring our first Proof of Concept (PoC) to life. Within a year, we've gathered resources and expertise to manufacture our own Sodium-ion battery cell in-house, laying the groundwork for future product development. Collaborating closely with interested partners, we're conducting customized application case studies to showcase the competitive edge of our tailored structural battery. Our goal has always been to meet customer needs while pushing boundaries in innovation, particularly in sustainable raw material sourcing, a critical challenge in the battery industry.

3. Fundraising situation and next steps?

We closed our 1M seed round in late 2023, with notable backers such as CDP Venture Capital Sgr and Leonardo S.p.A. Leonardo's involvement as a key industrial partner is invaluable for our growth and strategic development. Later this year, we'll launch our next funding round to elevate our product's technology readiness for the Space and UAV markets, establish a pilot production line, and recruit talent. Additionally, we've received positive feedback on our vision and mission and secured a 270k€ grant from the NODES program.

Product-wise, we're focusing on R&D, product development, and pricing strategy. Protecting our product and its applications with patents is a priority. We're committed to revolutionizing electric mobility across various sectors, starting with assembling structural battery prototypes. Our roadmap includes enhancing manufacturing process efficiency, reducing costs, and optimizing the supply chain over the next four years, aiming to surpass market expectations and set new standards in the battery industry.

Many thanks to Tommaso and Gianluca for the interview.

Stay tuned for the next post of The Weekly Deal!