Lithium-ion battery startup ActaCell first made headlines in July 2008 with $5.8 million in funding from Google, DJF Mercury and a handful of other investors. ActaCell took the next step toward production of its lithium-ion battery technology with last week’s announcement of at least $250,000 and up to $1 million in funding from the Texas Emerging Technology Fund (ETF). The battery manufacturer was chosen by the Austin Chamber of Commerce, Governor Rick Perry and the Central Texas Regional Center of Innovation and Commercialization due to its potential in the green vehicle market.
ActaCell started as a project in the laboratory of Professor Arumugam Manthiram of the University of Texas at Austin. Manthiram and his researchers have developed a new chemical formulation for the lithium-ion battery that solves lingering problems with the technology. This chemistry not only keeps batteries in operation longer than previous products but also reduces manufacturing costs. ActaCell also points out that the manganese chemistry used in this battery meets safety standards for car batteries, making it viable in the automotive market.
The initial $250,000 infusion from the Texas ETF will help ActaCell build on its modest production facilities. The startup used its initial funding to not only create a dry room and small production area for the finished battery but also to proceed to testing battery prototypes. ActaCell will use the Texas ETF funds to move these battery tests into the automotive realm with testing in hybrids and plug-ins. After the announcement of the Texas ETF funding, ActaCell also noted that former EcoMotors International CEO Don Runkle joined the company’s board of directors. Runkle is a former vice president at General Motors and CTO of Delphi.
Parts startups throughout the United States should look to ActaCell as a model for future success. The company went from a university lab to the cusp of battery production in about two years. ActaCell developed an innovative battery chemistry that clearly improves on existing batteries while assuaging critics with safety and price concerns. The combination of venture capital and public funding for ActaCell was enough to draw a veteran of the mainstream auto industry into the fold. The demand for inexpensive and durable parts for fuel-efficient vehicles should lead to plenty of ActaCell copycats in the future.
