China's Hithium Energy Storage raises $622m

Other investors include Bank of China Asset Management, Goldstone Investment, SDIC Fund, China State-Owned Venture Capital Fund, CDH Investments, CICC Capital, China-US Green Fund, and Hefei Industry Investment. Existing backers Fenghe Capital, Matrix Partners China, and ABC International re-upped, according to a statement.

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 operates at lower voltages than most 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.

Hithium claims to work with over half the top 10 global players across wind, solar, and renewables systems integration.

In April, the company launched a new generation of energy storage batteries featuring 320 ampere-hour (Ah) prismatic cells – an upgrade on the existing 280 Ah model - that can be re-charged 10,000 times. It is described as a "super product," offering higher energy density, longer life cycles, enhanced security, and increased compatibility.

Hithium's manufacturing base in Chongqing is now running at its full capacity of 15 gigawatt hours. Around USD 4.7bn has been committed to building a new facility that will have 100 GWh in capacity by 2024 and 135 GWh by 2025. Some of the new capital will be used for this purpose; the rest will go towards equipment purchases, R&D, and business development.

Hithium secured CNY 2bn in Series B funding led by ABC International in October 2022. AVCJ Research has records of three previous 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 involved.

Energy storage represents a significant area of interest for PE and VC investors. Recent deals involving energy storage companies include a CNY 600m Series A for WeView, a CNY 700m Series B for JD Energy, a CNY 1bn Series A for Zhongchu Guoneng Technology, and a CNY 1bn round for Fox ESS.

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• Topics
• Greater China
• Expansion
• Industrials
• Technology
• China
• Cleantech
• SDIC Fund Management
• Goldstone Investment
• CDH Investments Management
• CICC
• Matrix Partners
• energy storage
• manufacturing