China energy storage player Hithium gets $276m Series B
Xiamen Hithium Energy Storage Technology, a China-based battery manufacturer, has secured CNY 2bn (USD 276m) in Series B funding led by ABC International.
Other participating investors included CCB Trust, an asset management unit of China Construction Bank, Matrix Partners China, Fenghe Capital, Dayone Capital, Torch Ventures, Xiamen Venture Capital, Goldwind Investment, and Chengtun Mining Group, according to a statement.
AVCJ Research has records of three previous funding rounds for the company between July 2021 and August 2022. Shenzhen Dagong Capital, Suzhou Xinrui Venture Capital, BTR China, Ori-mind Investment, Cowin Capital, Shenzhen Investment Holding, Fenghe, and Matrix were all involved.
Founded in 2019, Hithium produces components for lithium-ion batteries as well as lithium iron phosphate (LFP) energy storage batteries and systems. LFP has a lower energy density and operating voltage than other common lithium-ion battery types. Its low cost, high safety levels, and long cycle life are seen as well-suited to use in vehicles, utility-scale stationary applications, and backup power.
The company has completed the first phase of its factory expansion, achieving annual output capacity of 15 gigawatt hours. It has committed to invest USD 4.71bn in building a 1.4m square-metre plant and reaching 100 GWh in capacity by 2024 and 135 GWh by 2025. Hithium claims to work with over half the top 10 global players across wind, solar, and renewables systems integration.
Earlier this year, it unveiled a 300-ampere-hour prismatic cell – an upgrade on the current 280 Ah energy storage product – that has an extended life cycle, delivers energy efficiency of 95%, and is capable of zero capacity loss in the first three years of use. Hithium also showcased a large cylindrical battery shell that it claims reduces overall battery cost by 10%.
The new capital will be used for production capacity expansion, procurement of advanced equipment, research and development, and business development activities.
Batteries represent a significant area of interest for PE and VC investors targeting the electric vehicle (EV) value chain. The likes of Svolt Energy Technology and Contemporary Amperex Technology (CATL) have attracted much of the capital entering the space in recent years, but there are also start-ups focused on emerging industry themes.
Dayone, for example, is a strong advocate of all-solid-state batteries (ASSBs) as a safer alternative to liquid-based lithium-ion batteries. Last year, the firm teamed up with Sequoia Capital China to lead a USD 20m Series A expansion for Enpower Greentech, an ASSB pioneer in China.
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