Battery management specialist Element Energy closes $111m capital raise

California-based battery management technology company Element Energy has confirmed the close of a $111 million capital raise comprised of a $73 million Series B equity investment and a $38 million debt facility provided by Keyframe Capital Partners. 

The Series B round is co-led by “one of the largest clean energy generation companies” in the US and Cohort Ventures. Mitsubishi Heavy Industries (MHI), Drive Catalyst, FM Capital, and AFW Partners joined the Series B round, along with existing investors LG Technology Ventures, Edison International,, Prelude Ventures, and Radar Partners. Debt and equity capital was provided by Keyframe. 

Founded in 2019, Element has developed “proprietary hardware and software algorithms applicable to both first and second life batteries to improve visualisation, battery safety, and efficiency”, an Element statement said.

The statement added: “Element’s technology is being validated on a large scale with a 50 MWh pilot project in the United States, which is expected to be completed in early 2024. Element will collect necessary data through its pilot project, obtain UL certification, and proceed to commercialise the product.”

Tony Stratakos, CEO and co-founder, Element Energy, said: “We founded Element with the mission to speed the adoption of clean energy with technology honed in the semiconductor industry. Seeing a soaring number of new battery storage installations, our market-leading partners are realising the value of improving the safety, lifetime and efficiency of batteries. With the additional capital and global partnerships from our Series B, we will further invest in and deploy our technology across target markets and applications, including SaaS for existing and new energy storage systems, hardware and software for new energy storage systems, and full battery energy storage systems using second life batteries.”

Shin Gomi, general manager in business development, growth strategy office of MHI, said: “MHI is committed to the energy transition, and energy storage systems are an important piece of the energy transition equation. MHI is pleased to invest in Element Energy for their outstanding diagnostic and management technologies. We look forward to ongoing collaboration with Element Energy to provide affordable energy solutions in the behind-the-meter space worldwide.”

Mark Norman, managing partner of FM Capital, said: “FM Capital has been impressed by the team at Element since our first meeting. Element’s patented technology dramatically improves battery pack performance, safety and useful life, reducing cost, weight and warranty expense for automotive customers. FM Capital is excited for Element to apply their solution in automotive EVs as well as second life applications for battery reuse.” 

Juliana Pidner Hsu, managing director of Drive Catalyst, the corporate venture capital arm of the Far Eastern Group, said: “As one of Taiwan’s largest and most diversified conglomerates, Far Eastern Group is fully committed to decarbonising operations and propelling green energy development. Energy storage may be one of the most critical areas for the energy transition blueprint of our group. We believe and support Element Energy’s efforts in making battery storage systems more reliable, efficient, and sustainable.” 

Ethan Goldsmith, partner, Keyframe Capital, said: “We are thrilled to support Element Energy as they leverage their proprietary hardware and battery management system to both dramatically improve battery system performance, including energy throughput, system life, and economics and enable second life batteries to safely and efficiently be repurposed in stationary storage applications.”