Envia Systems, a US-based developer of lithium-ion batteries, has raised $17m in its series C round from a consortium led by General Motors Ventures, the corporate venturing unit of US car maker GM.
Japan-based manufacturers Asahi Kasei and Asahi Glass and Envia’s existing venture capital firms, Bay Partners, Redpoint Ventures and Panagea Ventures provided $10m.
In November 2009, Envia Systems, raised $7.7m for its series B round from Redpoint, Bay and Pangaea. Bay and Redpoint had provided the company’s $3.2m series A round in October 2008.
GM Ventures invested the other $7m eight months after Robert Stempel, the car maker’s former president and chief executive, joined Envia’s board. However, GM said its "technical community (battery team) had ongoing discussions with Envia before Bob joined their board in the summer of last year. So, our decision to invest was based the progress they had made, supported by our testing of their powder (confirm claims and understand the development required for commercialization) rather than input from Bob. And, Bob was never involved in any of our discussions with the company about the investment because that would not have been appropriate."
GM said the deal would give its battery engineering team access to Envia’s lithium-ion cathode technology that claims a higher cell energy density and lower cost.
Micky Bly, executive director for Electrical and Battery Systems at GM, said: "Our test results on small-format cells show that Envia’s high-capacity composite cathode material can increase the energy density of lithium-ion cells by up to one-third, at an equivalent level of reliability, safety and durability."
In a separate agreement, GM has secured the right to use Envia’s cathode material for future GM electric vehicles.
Jon Lauckner, president of GM Ventures, said: "Skeptics have suggested it would probably be many years before lithium-ion batteries with significantly lower cost and higher capability are available, potentially limiting sales of electric vehicles for the foreseeable future. Our announcement demonstrates major improvements are already on the horizon."