International Battery Company, a startup developing lithium-ion battery cells for electric vehicles, has recently announced a successful fundraising round of $35 million. Led by RTP Global, the pre-Series A round saw participation from Beenext, Veda VC, and various strategic Korean and U.S. investors. This funding will aid the company’s mission to bridge the demand-supply gap in the rapidly growing EV market in India.
TechCrunch exclusively learned and confirmed that the startup is also gearing up for a much larger funding round of around $70 million. This round, which is still in the works, will further aid their efforts in meeting the increasing demand for EV batteries in India.
India is currently home to over 3.5 million EVs, with almost half of these being electric two-wheelers and less than 10% being four-wheelers. The remaining vehicles consist of e-rickshaws, three-wheelers, and a small number of electric buses, as per data available on the Indian government’s Vahan portal. However, these numbers are quite insignificant compared to the over 23 million vehicles sold in the country in 2023 alone.
But with new regulations and incentives being offered to manufacturers, the share of EVs in the market is expected to grow. In fact, the Indian government has set a target of electrifying 30% of its four-wheeler base and 80% of its two- and three-wheeler market by 2030, aiming to limit internal combustion engine (ICE) vehicles.
“There is a lot of demand in the Indian market, which is currently being met through imports. No cells are being manufactured in India, so we want to participate in that journey in India,” says Priyadarshi Panda, founder and CEO of International Battery Company in an interview with TechCrunch.
The startup is addressing the current issues surrounding EV batteries in the Indian market. Currently, these batteries are mainly imported from China, leading to concerns about safety and sustainability. These packs are not designed to adequately withstand local conditions or wear and tear, resulting in some instances of electric two-wheelers catching fire. International Battery Company aims to tackle these problems and meet the current and projected demand for EV batteries in the country with its in-house Li-ion battery cells.
At present, the company manufactures its large-sized rechargeable Prismatic Li-ion Nickel Manganese Cobalt (NMC) batteries in Silicon Valley, before producing them at its 50MWh capacity plant in South Korea. These batteries are specifically designed for the Indian market, meeting requirements such as safe operation in high temperatures, fast-charging capabilities, and extended lifecycles, with a 7- to 10-year warranty.
Recently, the startup received certification from India’s standard body, the Bureau of Indian Standards (BIS), to start selling its EV battery cells in the country. It also made its first commercial shipment this month, thanks to its fully recyclable and reusable United Nations 38.3 standard-based Li-ion NMC battery cells.
International Battery Company has also signed a memorandum of understanding with the government of Karnataka to build a 10GWh facility in Bengaluru by 2028. The startup’s plan is to initially establish a 2GWh capacity plant in the state by 2025, which will be a replica of its existing Korean factory.
Priyadarshi Panda, an IIT Kanpur and MIT alumnus, with extensive experience in the field, is the founder and CEO of International Battery Company. Panda has previously helped establish a Prismatic phosphate-based lithium-ion gigafactory in New York and a Prismatic lithium-ion NMC factory in Korea. With his experience, he plans to develop the startup’s facility in India.
“We are proactively preparing for the execution of building the gigafactory in India, which we will do with the additional fundraising,” Panda confirms.
The company’s approach of being a Li-ion product company sets them apart from the competition. This approach, coupled with their focus on designing cells that meet the specific requirements of Indian consumers, has garnered the attention of venture capital firm RTP Global. Despite the ongoing market slowdown and the trend of VC firms avoiding investments in startups with no revenue, RTP Global has closed the deal with International Battery Company.
“[International Battery Company] has been quite grounded and focused on execution, rather than just making news about it,” says Nishit Garg, partner at RTP Global.
The initial target for the company is to serve customers in India, with two of the three customers already on board, including two- and three-wheeler manufacturers. In the next phase, the company plans to work with industrial and farm equipment manufacturers. As they continue to learn and grow, they also plan to develop battery cells for larger mobility segments, starting with buses and trucks and eventually expanding to electric cars. They also have their sights set on global markets, such as Korea, North America, and Europe, in the future.
International Battery Company is not the only company building Li-ion battery facilities in India. Other major companies, including the Tata Group, Hyundai, and Ola Electric, have also announced similar plans. However, the product-oriented approach by International Battery Company sets them apart from the competition.
With a team of 100 people, International Battery Company is currently hiring in India to expand their local team and work towards their goal of becoming a leading player in the EV battery market. And with their commitment to constantly innovate and adapt, the company is well on its way to achieving this goal.
