What It Really Costs to Commercialize New Battery Technology: Lessons From More Than a Decade of Investment Data

August 17, 2016 | State of the Market Report

As plug-in vehicles and stationary storage continue to build momentum, batteries are attracting enormous interest and hype – but as many investors have already learnt the hard way, this technology is very expensive and difficult to commercialize. To quantify what it really costs to bring a new energy storage related idea to market, we analyze more than a decade’s worth of select investment data, and find that relatively speaking, plug-ins are an order of magnitude more expensive to fund, needing $1 billion per startup within six years. Meanwhile, for $100 million to $300 million, a number of options are on the table, ranging from incumbent lithium-ion and system integration to advanced stationary batteries. Finally, next-generation batteries are a slow burn, raising just about $40 million even after eight years, but that slows their road to market.

Coverage Areas

  • Owning the Energy Transition
  • The Future of Mobility

Table of Contents

  • Title page
  • Landscape
  • Analysis
  • Outlook

Lead Analyst

Cosmin Laslau, Ph.D.
Director, Research Products