Addionics: EV sales slow, but not battery investment

Growth in new electric vehicle (EV) sales is slowing across key markets while automakers and battery manufacturers dial back project deadlines and delay plant openings, but that doesn’t mean investment or R&D has come to a halt. For battery technology innovator Addionics, it’s quite the contrary. “We see this period as an opportunity to focus on innovation and technological advancement that will set the stage for the next generation of EVs,” says company Chief Executive and Co-Founder Moshiel Biton.

A move to 3D architecture

In the push to improve battery safety, cost and efficiency, most engineers have focussed on altering the battery chemistry, but Addionics approaches the challenge from a physics perspective. It’s proposing a radical redesign of the electrode architecture. Instead of depositing the active material on top of a 2D metal foil, it has developed a scalable 3D metal structure.

The new architecture, which is chemistry agnostic, allows higher loading of the active material in the cathode and anode while reducing weight and cost. That could translate to faster charging times and increased greater energy capacity. In this way, Addionics’ technology supports the wider industry shift towards an electric future, regardless of the battery chemistry powering it. “Our 3D Current Collector technology is designed to address some of the key challenges facing the EV market today,” Biton says. “By improving energy density, charging times and battery lifespan, we can help make EVs more attractive to consumers, even if there is a market slowdown.”

While sales of EVs in most regions are ticking upward, the rate of growth is notably down on where it has been over the past couple of years. The US faces a particularly challenging time as looming presidential elections throw its policy trajectory into doubt. Republican nominee Donald Trump has made all sorts of commitments about slashing support for electrification and rejigging the Inflation Reduction Act should he be elected. In the wake of that uncertainty, Tesla has decided to delay its Nuevo Leon Gigafactory in Mexico. GM and LG Energy Solution’s joint venture Ultium Cells has also suspended construction of its third plant in Michigan. Meanwhile GM, Ford, Renault, and other big name automakers are slowing their EV launch timetables.

Fresh funding and new plants

But that hasn’t hampered interest or investment at Addionics. “The market may experience short-term fluctuations, but the drive for better, more efficient, and more affordable battery technology remains critical both in the short and long term. We are well-positioned to contribute to the ongoing EV evolution, ensuring that the industry continues to move forward even during periods of slower growth,” says Biton. In February 2024, the company announced plans for a US$400m investment in its upcoming US manufacturing facilities to support local EV battery production. Once completed the factories will generate 3D copper foils to support 90GWh of battery capacity a year, marking a huge increase in domestic copper foil production.

In July 2024, Addionics secured an additional US$39m from its Series B funding round, co-led by GM Ventures and with participation from Scania along with other strategic investors. Backing from such major industry players “is immensely important,” Biton tells Automotive World. “GM Ventures’ backing shows that it believes our 3D Current Collector technology could play a key role in enhancing battery performance at a lower cost, aligning with GM’s broader mission to support an all-electric future. Similarly, Scania’s investment highlights our technology’s potential to contribute to sustainable and efficient next-generation, zero-emission solutions​​​​.”

Previous funding rounds attracted investment from Novelis and Magna International, among others. Although Biton declined to provide any customer details, Addionics claims to be working with the majority of the ten biggest global automotive OEMs and battery manufacturers.

Market fluctuations are natural, but the underlying trend towards electrification and sustainable transportation remains strong

The latest funding infusion should help Addionics bring its potentially game-changing solution to the market faster. Today its core manufacturing and R&D takes place in Israel and the UK, but the future of its production will be at the planned US site. “With the support of our financial partners, we are looking forward to building the solutions to power a cleaner and more efficient world,” Biton emphasises. The funding is also expected to support global commercialisation efforts and the establishment of global teams.

Staying focussed and innovative

Addionics’ investment roadmap speaks clearly to its confidence in an electric future, despite the lacklustre sales growth figures. “While the percentage increase of people buying EVs may be lower than in the previous comparison period, there is still growth, and consumers are still eagerly buying these vehicles,” Biton insists. He goes on to note that today’s market conditions “highlight the need for solutions that can drive cost reductions, better manufacturing, and performance improvements now, not in ten years.” One of the key benefits of Addionics’ technology is that it serves as a drop-in solution, with easy integration with existing production lines and no need for major overhauls. According to the company, that’s been “a huge selling point” among its partners.

The message—from Addionics’ Chief Executive and its expansion plans—is one of optimism. “As the technology becomes even better, there will continue to be larger adoption of EVs,” says Biton. “Market fluctuations are natural, but the underlying trend towards electrification and sustainable transportation remains strong.”