ACT-ion Secures $7.5 Million in Pre-Series A Funding to Innovate Lithium-Ion Battery Materials

ACT-ion, a Dallas-based startup specializing in lithium-ion battery cathode active materials, has successfully secured $7.5 million in a Pre-Series A funding round. The round was led by BASF Venture Capital, with participation from Hunt Energy Enterprises, Mirae Asset Capital, Arosa Capital Management, and LG Technology Ventures.

Jin Lim, the co-founder, CTO, and interim CEO of ACT-ion, expressed his enthusiasm, stating, “We’re excited to have the support of Pre-Series A investors who share our vision for battery materials and manufacturing. This funding will enable us to bring our innovative solutions to market more quickly and significantly impact the global energy landscape.”

Founded in 2019, ACT-ion has developed a cost-effective method for producing single-crystalline cathode active materials. The company’s chemistry-agnostic process addresses a significant challenge in the lithium-ion battery value chain: reducing the production costs of crystalline cathode active materials (CAM) while increasing throughput.

The funding will be utilized to expedite the development of ACT-ion’s innovative CAM production technology, with plans to establish an operational pilot facility by 2025, validated by leading industry partners. Recently, ACT-ion received an R&D 100 award for its innovative approach to simplifying and reducing the costs associated with CAM manufacturing.

The company claims its continuous process produces coated single crystal CAM, resulting in higher performance and longer cycle life for lithium-ion batteries. ACT-ion has reportedly demonstrated this manufacturing platform across various chemistries.

From an investment perspective, Joshua Speros, investment manager at BASF Venture Capital, noted that “with the market need for novel battery materials and the processes to produce them, ACT-ion’s mission to enhance CAM aligns well with BASF’s efforts to deliver innovation to our customers.”

Lillian Shattock, director of private investments at Arosa Capital Management, added, “The domestic production of battery materials at competitive costs will mark a significant milestone in the US CAM industry. We’re thrilled to support ACT-ion, as we believe their technology can be a pivotal enabler of domestic CAM manufacturing.”

ACT-ion was incubated within and spun out of Hunt Energy Enterprises. Victor Liu, Chairman of ACT-ion, stated that the venture was created to tackle the most significant cost constraints in lithium batteries, thereby facilitating growth in markets such as electric drones, electric vehicles, and power tools.

As a leading technology company in lithium battery cathode active materials, ACT-ion utilizes an advanced manufacturing process to produce coated single crystal CAMs through a novel, clean, and chemistry-agnostic method that requires lower energy and costs.