Mark Zhu

Last week Peak Energy announced its $55M oversubscribed series A, which Xora Innovation led, joined by lead seed investor Eclipse (Greg Reichow, Ryan Gibson), as well as TDK Ventures (Anil Achyuta), TechEnergy Ventures (Alejandro Solé), Doral Energy-Tech Ventures (Roee Furman), Lachy Groom, and Tishman Speyer (David Aron). Special thanks to 🌱🤝🌍 Anil Achyuta for the original introduction.   Peak is commercializing a new standard in grid-scale energy storage systems based on sodium-ion batteries. Peak’s market is benefiting from the twin tailwinds of renewables and AI, and the company has just the right founding team to scale at "ludicrous speed".   Landon Mossburg, Co-Founder and CEO, is one of the most phenomenal team builders we have had the privilege of backing. He brings deep experience in building battery gigafactories from his prior role as Chief Automation Officer of Northvolt, where he didn’t shy away from sleeping on factory floors for months in Northern Europe.   We have a special place in our hearts for entrepreneurs who have the grit to spend 10 years+ building deep tech startups from the foundational stage to commercialization. Cameron Dales, Co-Founder, President and Chief Commercial Officer, has done it not only once, but twice, at Symyx Technologies and Enovix (current market cap $2.65B).   Liam O'Connor O’Connor, Co-Founder and COO, previously scaled major portions of Tesla’s and Apple’s supply chains, flying over 500,000 miles a year when required. Liam has a deep understanding of what it takes to build resilient supply chains in hypergrowth mode, having previously scaled from <$5B to $40B in spend over a matter of a few years.   The climate tech sector is in need of more entrepreneurs who truly understand what building on a massive industrial scale means. We couldn’t be more excited that Landon, Cam and Liam have decided to apply their talents to enabling grid-scale energy storage.

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🚀 While the world grapples with access to baseload energy for compute, we've been proud to watch 8090 Industries portfolio founders Hannan P. and Jack Abraham of Exowatt quietly build. 🤯 Today, Exowatt unleashes a new dawn for the energy industry with unveiling P3s - with the ability to generate electricity at scale at just a $0.04 LCOE and with entirely baseload renewable tech. That’s lower than the cost of most fossil fuels and doesn’t account for subsidies. The company has already amassed a 1.2 GW backlog, worth $Billions from mega tech hyperscalers, energy giants and data center companies. Renewable energy can power the data centers of the AI era, and Exowatt founders Jack Abraham and Hannan P. are building that future. We're honored to be backing Exowatt alongside Sam Altman, Andreessen Horowitz, Felicis, Atomic, Overmatch Ventures and Climate Capital. Read more about their launch today here: https://lnkd.in/gZDKZdk8 cc Kerem Ozmen Wes Mendenhall Filip Vurdelja Haluk Sabanci Dincer Grant Brown Ishan Meswani Garuth A. Andrew Irwin Shilpa Patel

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Goldman Sachs recently published a report on falling Lithium Ion battery prices. They estimate the "EV market could achieve cost parity, without subsidies, with internal combustion engine (ICE) vehicles around the middle of this decade on a total-cost-of-ownership basis." Despite the buzz around emerging technologies like solid-state and sodium-ion batteries, lithium-ion continues to dominate the energy storage landscape. According to GS' research here's why: 1. Established Supply Chain: Lithium-ion benefits from a mature, efficient supply chain built over decades. 2. Market Concentration: Just five companies control nearly 80% of the market share, each with 20+ years of industry experience. 3. R&D Advantage: These leaders have intensified their R&D spending in recent years, widening the gap with newcomers. 4. Manufacturing Efficiency: New entrants struggle to achieve the yield and cost structure of established players. 5. Skilled Labor Shortage: The industry faces challenges in finding experienced workers, favoring established companies. 6. Economic Pressures: A cyclical downturn is making it difficult for new technologies to gain a foothold. 7. Rapidly Falling Prices: The cost of lithium-ion batteries continues to decrease, further solidifying their market position. This price reduction is expected to accelerate EV adoption in the coming years. While innovations like solid-state batteries show promise, they face an uphill battle against the lithium-ion juggernaut. The entrenched players' decades of experience, economies of scale, and continued innovation create a formidable barrier to entry. Looking ahead, GS expects a strong resurgence in EV demand around 2026 as battery prices continue to fall, potentially reaching total cost of ownership parity with ICE vehicles in markets like the US. This trend is likely to further cement lithium-ion's position in the market. You can read the whole article here: https://lnkd.in/gtQnHsr5 #Lithium #BatteryTech #EVs #EnergyStorage #MarketTrends

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Four years ago, in the thick of the COVID pandemic, Rewiring America shared their #electrification handbook. We at Energize Capital had been investing at the intersection of renewables and electrification since our firm's inception back in 2016. Rewiring America's work crystallized the electrification of everything imperative in a way we hadn't seen before; communicating complicated concepts simply. It inspired our team at Energize to start sharing our own views and thesis on, you guessed it, Electrify Everything.   Fast forward to 2024, we are 5 years into researching and writing about how to "Electrify Everything." We can decarbonize, save people and businesses money, and make the industrial economy more efficient. Critically, electrifying faster with proven technologies like solar, energy efficient devices, batteries … has an outsized impact on the Earth's carbon stock now, not 30 years from now. We think enabling technologies that help us electrify faster can unlock many proven electrification technologies. In the process, they might make a lot revenue and profit. That is a good thing.   Every year, Energize shares the latest Electrify Everything trends we can't stop talking about. We also share 30 companies advancing electrification with digital platforms that we really admire. There are 100s if not 1000s of innovators developing hardware, deeptech, software, and tech-enabled services business models to electrify everything. We love it all. Come join the movement and #ElectrifyEverything. Read on below to learn about the Electrify Everything 2024: The Top 30 Software Innovators! https://lnkd.in/euMeUMZt

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Today I want to put the spotlight on Arelys Sosa, Thomas Tingelöf and Kent Moore who are the amazing founders of DREV.🔦 The problem they are tackling is that battery gigafactories, semi-conductor factories, and battery recycling plants face big challenges collecting hazardous metal micro-particles, slowing production, and they are squandering precious materials, and endangering staff. These are all individually big problems and combined this is huge.☣️ Drev has the solution to all to this with The Vault, an innovative technology powered by patent-pending dry brush technology and a revolutionary canister design, eliminates water and chemicals from the cleaning process, improves safety, and enables the adaptive reuse of valuable materials that would otherwise be thrown away with save manufactures millons. 🧹 The Drev team has the unique domain experience for solving a particular problem that we're always looking for when we are backing founders at the Norrsken Accelerator. Arelys is an industrial engineer who was part of the original team at Panasonic Energy at Tesla’s Gigafactory 1 so she has seen this problem first hand for years. Thomas has a PhD and he has been the CTO of PowerCell and VP at Volvo Cars and has massively scaled technologies before.🤩 The interest from the industry is huge and they are currently running projects with some of the leading battery manufacturers. You can read more and contact them here: https://lnkd.in/d7V-mKrx

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It'd be great to see a prediction market on who is first to cost-effective, safe, practical fusion power any time soon... I'd be betting on DCVC -backed Zap Energy given their delivery of real-world fusion innovation, ahead of time and budget -- in an elegant, compact, design

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Are electric vehicles as green as we think? I recently joined the 'ESG Detectives' podcast to discuss the true environmental impact of EVs, from manufacturing to energy consumption. We also explored the vital role of AI and semiconductors in shaping the future of sustainable transportation. Tune in to discover the surprising realities behind this rapidly evolving industry. What are your thoughts on the environmental impact of EVs? Share in the comments below! #EV #AI #Sustainability #GreenTech #Podcast #Discussion

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Last week, I had the pleasure of moderating a discussion on navigating FOAK in climate tech at the Greentown Labs Summit in Boston (which had >600 people!!). Here’s a quick rundown of what was shared by Katherine St. James of Spring Lane Capital, Paris Smalls, PhD of Eden GeoPower, and Hannah Friedman of Planeteer Capital: 🌱 What is the definition of FOAK? We discussed how the term can be controversial - it's almost too general because it doesn't identify what kind of "First" FOAK refers to - first team project? First geography? First of a technology in a sector? First time for the integration of a system? It's also too specific because it has the word "first" in it, which can be anathema to later stage / project finance investors. 💰 Partnerships for Funding FOAK Projects We discussed how important it is to build a blended capital stack & use off-balance sheet capital for a project so you're not using the most expensive equity dollars to fund an infrastructure project with low-ish IRR. We also talked through being creative about using corporate partners to provide in-kind services or ink some agreement (at least an LOI) to attract this funding. 🏛 Role of Government We talked about how government capital is seen by investors & how it can be catalytic for FOAK. Government capital can provide validation that a startup has passed a rigorous diligence process by a third party - and incentives like grants or credits can help improve returns for the first project- but it's important to be doing this in conjunction with getting customer validation and to be able to present line of sight to competitive economics without concessionary capital. 👥 Advice for FOAK startups The panelists offered some very specific pieces of advice for startups going through FOAK: how to get creative with things like revenue sharing agreements or convertible notes, getting smart with project development early on (like with DeveloperU), being careful about using FOAK too liberally with certain investor groups, getting the right commercialization / FOAK talent in and around you early Huge thanks to the panelists and the team at Greentown Labs (Jill Kirkpatrick, Julia Travaglini, Aisling Carlson, etc you rocked it!!) for hosting this discussion on bridging the FOAK gap. Also immensely enjoyed the rest of the agenda. Check out the full recap & videos here: https://lnkd.in/d9ApYe9Y #ClimateTech #FOAK #ClimateFinance #ProjectDevelopment #GreenTech #CleanEnergy

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Congrats to our portfolio companies — Heirloom, Charm Industrial, Vycarb, and Vaulted Deep who all made the DOE's short list of Phase 1 semifinalists! Funded by the Bipartisan Infrastructure Law, the Carbon Dioxide Removal Purchase Pilot Prize allows companies to compete for the opportunity to deliver carbon dioxide removal credits directly to DOE. This is such an important initiative to ensure carbon credits are of a high quality, and will ultimately help restore trust in carbon markets. https://lnkd.in/drEkPd4p

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8,500 MWh will be the largest grid storage project by energy capacity in the country

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For now, making money in utility scale energy storage is about speed to market, service, and taking advantage of demand irregularities and the inefficiencies inherent in renewable power generation. Smart investors are purchasing and deploying established battery technology rather than chasing novel materials or chemistries that have lengthy roads to commercial acceptance. Hopefully, everyone ultimately wins, but the best investments today involve derisked technology #practicalenergyinvesting #bridgeenergytechnology #energyefficiency

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With the rapid rise of AI and increased focus on electrification and EV adoption, the economics of the energy market have shifted dramatically — energy demand in the U.S. is skyrocketing. However, there's a very clear imbalance between the need for grid-scale energy storage solutions and the lack of available supply. Without a viable storage solution for the grid, the increase in energy demand will be met by gas-powered peaker plants and coal-burning plants — reversing all progress to date on reducing carbon emissions. Less than a year ago, Peak Energy was founded with the mission to revolutionize energy storage with the development of low-cost, large scale sodium-ion battery technology. Today, the company has announced its $55M Series A to commercialize and scale its grid storage technology. Peak Energy's momentum over the last year not only reflects strong market demand, but also is indicative of the team behind the mission: Liam O'Connor, who led operations and supply chain at some of the world's largest technology companies like Tesla and Apple; Landon Mossburg, who built and scaled large battery manufacturing at Northvolt and Tesla; and Cameron Dales, who helped build from scratch leading-edge battery company ENOVIX Corporation. From the deep expertise the company's leadership brings to the table, to the all-star team they've assembled, and the innovative technology they are developing, the Eclipse team believes Peak Energy brings the ample firepower to secure the future of renewable energy. https://bit.ly/3Y8LniO Congratulations!

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Two encouraging developments for Group14 Technologies and electrification efforts more broadly last week. 🔋⚡   Lightrock partnered with Group14, led by Rick (Eric) Luebbe, in 2022, recognising the groundbreaking nature of its SCC55™ material. Compared to conventional lithium-ion batteries, SCC55™ offers up to 50% more energy density and extremely fast charging. Moreover, it can seamlessly integrate into existing lithium-ion manufacturing lines without the need for retooling. 1) 100 battery manufacturing customers, representing over 95% of the world’s battery production for both electric vehicles and consumer electronics, have received their first shipments of SCC55™. This follows the establishment of the initial production factory in Woodinville, Washington, and a joint venture with SK Inc. in South Korea. 2) The U.S. Department of Energy (DOE) has awarded Group14 up to $200 million to build a factory capable of producing 7,200 metric tons of silane, addressing a critical bottleneck in the US battery manufacturing industry. This grant will also create 300 new jobs for the factory’s construction and an additional 150 roles for commissioning, ramping up, and sustaining production. Group14 is scaling battery production to new heights and accelerating the electrification and sustainability of our society. Their BAM-1 factory in Woodinville has been operational since 2021, and the SCC55™ produced there is already in over two million smartphones. The new JV factory has an initial annual capacity of 2,000 tonnes of SCC55™, enough to power roughly 100,000 to 250,000 electric vehicles per year. Group14’s BAM-2 factory site in Moses Lake, Washington, is expected to add another 4,000 tonnes of capacity in 2025, bringing the combined annual capacity for SCC55™ material to over 30 gigawatt hours. Huge congratulations to the entire Group14 team on this milestone and award. I encourage you to follow Group14 and check out the links in the comments for additional details. #Group14 #Electrification #Sustainability

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🔦 Spotlight on Emerging Investment Trends: Energy Transition, Robotics, and Early-Stage Unicorn Sourcing 💡 At PaperJet Ventures, we’re always looking beyond the horizon for where technology and capital are converging to create transformative opportunities. In my latest Substack post, I dive into three major themes that are shaping our investment strategy: 1️⃣ Energy Transition & Data Centers: With the rising demand for AI infrastructure, energy consumption is set to skyrocket. We’re looking at novel material technologies that can make data centers scalable and sustainable. 🌍⚡ 2️⃣ Robotics Revolution: The race to build the next-gen robotics market is heating up, but it’s not just about software. Tackling hardware challenges will be key to unlocking the potential of humanoid robotics and solving global labor shortages. 🤖✨ 3️⃣ Sourcing Early-Stage Unicorns: With over 800 unicorns emerging in recent years, early-stage investment remains highly fragmented. That’s where we see an opportunity to identify and back outlier founders before they gain broader attention. 🚀🔍 Curious about our approach or want to share your thoughts? Check out the full post below and let’s connect on these emerging themes!👇 https://lnkd.in/gU9pfgUk #DeepTech #AI #VentureCapital #Investing #Robotics #EnergyTech #TechTrends

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Iron-Air technology and emerging alternatives are set to transform multi-day energy storage. On August 13, Form Energy announced the successful pilot of their iron-air battery system, a breakthrough in multi-day energy storage technology. The global energy storage market is facing a critical challenge: how to store renewable energy for extended periods at a low cost. Advancements in materials science and increased investment in research have paved the way for new technologies like iron-air batteries. Iron-air batteries and other electrochemical solutions may be about to ‘pull ahead’ competing technologies to become the go-to solution. Other novel technologies are likely to emerge on the the success of Form Energy's iron-air battery pilot - the news may catalyze a wave of new projects in the long-duration energy storage space. https://lnkd.in/eyETivB4

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Anyone happen to know what the cost per kwh of non-intermittent electricity is going to be in five years, behind the meter and on the grid? 😂 Analyzing companies whose techno-economic models and approach competitiveness hinge on electricity prices is beginning to feel like fraught futurism. I've started running the model with zero cost of electricity just as a sanity check but it also seems unwise to just assume use of intermittent power at $.02/kwh. It's getting increasingly unclear whether the reigning assumption that opex efficiency (electricity pricing) should be as weighted as it is...maybe capex, scaling velocity, and other factors like proximity to markets will actually dominate at the end of the day. Someone needs to Kickstart an electricity market magic eight ball...

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Three lower middle market private equity themes that came, of all places, from an early stage VC LP meeting I got to attend yesterday💡: 1 - Chairman and investor in The Nuclear Company made a compelling case for how nuclear must boom to meet American electricity demand. PE Theme: tailwinds in the entire utility services, utility test & measurement, and utility construction / site services value chains. ☢️ 2 - The CEO of Sage presented on the hardware / software / data stack his team has delivered to transform outcomes in eldercare, assisted living, home healthcare, and nurse staffing. PE Theme: these are each highly trafficked LMM healthcare M&A categories. There will be singificant operating margin opportunities as this technology penetrates eldercare, allowing for new underwriting creativity and new post-acquisition playbooks. 👩🏻‍⚕️🏥 3 - The CEO of Daisy has blended multi-region M&A strategy and franchising in the Smarthome Integration / Installation category. 6 acquisitions so far. Rollup + Franchising in the hyper fragmented home services market. VC-backed and playing in the "PE sandbox" PE Theme: HVAC, now smarthome integration / installer roll-ups. What's next in home services, is it endless? 💡🖥️🏠.

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The U.S. manufacturing sector is booming thanks to the $52 billion CHIPS and Science Act signed by President Biden last year. This initiative has spurred over $898 billion in private investments across the country, from biotech and chip plants to EV battery factories and clean energy projects. Recent highlights include NorSun's $620 million project in Tulsa, Philip Morris International's $600 million facility in Aurora, and Kyowa Kirin's $530 million plant in Sanford. These investments are not only boosting local economies but also positioning the U.S. as a global manufacturing leader. With more big projects on the horizon, U.S. manufacturing is set for continued growth and innovation. Source: https://bit.ly/4cU5pBV #ConstructionManufacturing #CHIPSAct #EconomicBoost #M&A

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