Polarium reached unicorn status with a $1bn valuation, after pension company AMF has bought a minority stake in the Sweden-based smart energy storage provider for $100m. The funding will help Polarium ramp up its growth plans.
Founded in 2015, Polarium helps commercial, industrial and telecommunications companies transition from diesel generators to using lithium-ion batteries for energy storage. Polarium said proceeds will allow it to maintain its pace of growth, which has seen it achieve a compound annual growth rate of around 150% between 2016 and 2021, as well as invest across the company and boost innovation.
The company has recently also branched out into energy optimisation projects, where companies can sell excess energy back to the grid when prices are high and store it when they are low. So far it has two pilot optimisation projects in place with telecommunications company Telia and fund manager Ariem respectively.
Energy storage is a crucial component of an energy mix that features renewable sources, which are intermittent in nature. Large-scale energy storage solutions – of which lithium-ion is currently the most widespread and popular option – are instrumental to balancing grid supply and demand throughout the day and feeding in power as efficiently as possible. Companies are also increasingly looking to get on-site renewable generation and storage assets, including contracted or as-a-service solutions, to reduce their long-term costs and carbon footprints.
Polarium’s past investors include Vargas Holding, Roosgruppen and Beijer Ventures.
Stefan Jansson, founder and chief executive of Polarium, said: “We have been on a rapid growth journey from day one. Helping the telecom sector to reduce their carbon footprint and increase their profitability by switching from diesel generators and lead-acid batteries for reserve power to smart lithium-based solutions.
“With AMF as our partner, we are well-positioned to accelerate our growth within reserve power and springboard that expertise to capture more of the ever-growing market for energy optimisation.”
AMF had previously been among the investors that backed a $2.75bn private placement for battery producer Northvolt in June last year. Not energy storage but still battery-adjacent, AMF also acquired a 10% stake in electric motorcycle manufacturer Cake in September last year.
Photo courtesy of Polarium
