International Battery Company, a startup developing lithium-ion battery cells for electric vehicles, has raised $35 million as it plans to bridge the demand-supply gap in the growing EV market in India.

Led The pre-Series A round saw participation from Beenext, Veda VC and various strategic Korean and U.S. investors by RTP Global. It comes down in front of a more impressive round when the startup is wanting to improve around $70 million, For Millionaires solely confirmed and learned.

India is home to more than 3.5 million EVs, with nearly half of them being electric two-wheelers and less than 10% four-wheelers, while the rest consist of e-rickshaws, three-wheelers and a number that is small of buses, per the information readily available from the Indian government’s Vahan portal. The figures tend to be insignificant, much more than 23 million automobiles had been offered when you look at the national country in 2023 alone.

However, the share of EVs in the market is expected to grow thanks to regulations that are new rewards wanted to producers. New Delhi aims to limit internal combustion engine (ICE) vehicles by electrifying 30percent of the whole base that is four-wheeler 80% of its two- and three-wheeler market by 2030.

International Battery Company sees an opportunity in that shift.

Currently, EV batteries used in the market that is indian brought in — mainly from Asia — resulting in protection and durability issues. These electric battery packages aren’t created properly centered on neighborhood problems nor accordingly made to endure deterioration. It has also generated some cases of electric two-wheelers fire that is catching. International Battery Company touts to address these issues and fulfill both the current and projected demand of EV batteries in the country with its in-house Li-ion battery cells.

“There is a lot of demand in the market that is indian that will be pleased through imports now. No cells are now being stated in Asia. Therefore, we should take part in that trip in India,” Priyadarshi Panda, creator and CEO of Overseas Battery business, informed For Millionaires in a job interview.

Setting up phase for neighborhood manufacturing

The Delaware-headquartered startup, that has been launched by Panda in 2022, focuses primarily on production its large-sized rechargeable li-ion that is prismatic Manganese Cobalt (NMC) batteries. The startup is targeting the mobility that is small comprising two- and three-wheelers, light commercial automobiles (LCV), and farm and business gear.

The startup researches and develops its electric battery technology in Silicon Valley and produces Li-ion cells at its 50MWh capacity plant that is manufacturing South Korea, which are specifically designed for the Indian market — meeting the requirements to operate safely in high temperatures, support fast-charging capabilities and offer extended lifecycles, with a 7- to 10-year warranty.

The facility, which produces United Nations 38.3 standard-based Li-ion NMC battery cells that are fully recyclable and reusable, helped the startup make its first shipment that is commercial thirty days. The startup obtained official certification from India’s body that is standard the Bureau of Indian Standards (BIS), in December to start selling its EV battery cells in the country.

Alongside manufacturing in South Korea, International Battery Company signed a memorandum of understanding with the government in the southern state of Karnataka year that is last develop a 10GWh center in Bengaluru by 2028. The startup initially seems to construct a facility that is 2GWh the state by 2025 spread across 100 acres that will be a “copy exact” of its existing Korean factory.

Panda, an IIT Kanpur and MIT alumnus who worked as a process that is senior at Intel, output lead at Lam analysis and a director at Applied components, has significantly more than 980 global citations from seven analysis magazines and 12 granted U.S. patents. He has got formerly aided establish a prismatic lithium-ion that is phosphate-based in New York and a Prismatic lithium-ion NMC factory in Korea. Based on his experience, the executive plans to develop International Battery Company’s facility in India.

The startup has already started conversations with investors on raising its Series A round of around $70 million to execute plans to build its gigafactory in India, For Millionaires learned.

When asked, Panda confirmed the fundraising that is additional. He claimed the startup would achieve 30% to 50per cent of the $35 million money objective featuring its item becoming competent and achieving customers that are initial. The rest of its funding aims to develop a data system with AI and ML algorithms to improve yield — before getting to the round that is next

“As the money is a process that is long we are trying to just feel the market, see who would be the right kind of partners to primarily enable the execution plan of the India gigafactory,” he said. “We are proactively preparing for the execution of building the gigafactory in India, which we will do with the fundraising that is additional”

Distinctive advantage

Notably, Overseas Battery business just isn’t alone in creating Li-ion electric battery services in Asia. Organizations such as the salt-to-software that is indian Tata Group, South Korean carmaker Hyundai, Vietnamese EV maker VinFast and Bengaluru-based electric two-wheeler manufacturer Ola Electric have also announced their plans to build EV battery facilities in the country. Similarly, the EV that is global has actually BYD, LG Energy Solution, SK Innovation, and Panasonic, among significant businesses, in electric battery production. Nevertheless, Panda stated Overseas Battery Company’s strategy to be product that is li-ion makes them different from the competition, as it designs cells keeping in mind the requirements of Indian consumers.

“We are an ecosystem participant, along with other players who have announced plans for building Li-ion cell gigafactories in India. And together, we will enable solutions for the end customers… and together we can bring the value that is upstream, be it the powders, separators, electrolyte, most of the components, the complete price string in EV,” Panda said.

The product-oriented strategy by Overseas Power Business persuaded RTP Worldwide to shut the offer amid the market that is ongoing and a growing trend where VC firms largely avoid putting millions of dollars into startups yet to generate revenues.

“Many people have been trying to build batteries for India in the last four or five years, even the guys that are big. But there featuresn’t been any production that is meaningful this stage that anybody has been able to reach out to because it’s a very, very complex product,” Nishit Garg, partner at RTP Global, told For Millionaires. “The [International Battery Company] founders, and the way they have approached so far is just very different from a lot of others. They have been grounded and are quite focused on execution rather than making news about it.”

The initial target of International Battery Company is to serve customers in India, and it has already started working with two of the three customers on board that are in the two- and segments that are three-wheeler. The plan is to work with industrial and farm equipment manufacturers in the next round, Panda told For Millionaires. Based on these learnings, the startup looks to gradually develop battery cells for the mobility that is large, you start with buses and vehicles and soon after broadening to electric vehicles. In Addition It aspires to enhance its perspectives beyond Asia because it progresses.

“Once we, with a focused strategy, penetrate and offer persuasive solutions towards the client base in Asia, mainly when you look at the mobility that is small, be in the two-wheeler, three-wheeler, LCV, farm and industry equipment, then we will look at other markets such as Korea, North America, and Europe,” Panda said.

Although the executive did not disclose the names of any customers, International Battery Company mentioned in one of its recent presentations to investors, which For Millionaires separately reviewed, that it counts two-wheeler makers Ather Energy, River and Matter, three-wheeler manufacturer Euler Motors, EV charging tech startup Exponent Energy and carmaker Hyundai among a few other companies in its customer pipeline. The startup also projects to generate an annual revenue of $350 million in the second phase of its operations between December 2024 and 2025, with the production that is 2GWh, per the facts obtainable in its people’ deck.

As some businesses have already been checking out options of Li-ion batteries for EVs to lessen reliance on lithium and are usually studying sodium-ion cells as a solution that is potential International Battery Company is also doing its R&D on the subject in the U.S.

“The fundamental integration is very similar to lithium-ion. So with the maturity of the technology and the markets really calling we would be cognizant of it and very likely to be able to build sodium-ion solutions as well,” Panda said.

Panda is joined by co-founders Raj Singh (CRO), Venkatesh Valluri (president), and Sasi Kuppannagari (COO) for it,. The startup features a headcount of 100 individuals, including 75 operating its functions in Southern Korea and 10–12 full time workers and specialists when you look at the U.S. it really is presently employing in Asia to enhance its team that is local of a dozen people.(*)