123Fab #96

1 topic, 2 key figures, 3 startups to draw inspiration from

As the market for electric vehicles accelerates rapidly, so does the investment in charging infrastructure needed to support this growing market. While the vast majority of EV charging now takes place at home and at work, widespread, open-access public charging infrastructure will be essential to support EV drivers beyond early adopters.

In the past, proprietary electric vehicle charging technologies competed for market share. But this has changed in recent years, with pressure from regulators and automakers to provide EV drivers with a smoother, more reliable and interoperable charging experience.

Charging station interoperability

The technology behind charging station interoperability is universal roaming. It is analogous to the use of Automated Teller Machines (ATMs), which allow a consumer to access funds from any bank. Similarly, universal roaming allows an EV driver who is a member of a single network to access and pay at any public EV charger. 

This therefore requires billing interoperability for which two business models exist:

• Peer-to-peer: bilateral roaming agreements are signed between two charging network providers to allow customers of one network to use and pay for charging at their competitors’ stations. The standard underlying peer-to-peer roaming is the Open Charge Point Interface (OCPI).
• Hub: a single neutral party acts as an intermediate data clearinghouse and contracts with each individual network service provider. This obviates the need for multiple individual contracts between all providers. The standard underlying hub roaming is ISO 15118.

The second business model, which bypasses the bureaucracy required by bilateral agreements, is the one that is gaining the most ground. Hub players include Hubject (German startup), Gireve (French),  e-clearing.net (German startup), Mobi.E (Portugal startup) and others. Hubject is the leading player with over 1,000 B2B partners in over 52 countries and 4 continents, while the other 3 players are based in Europe.

Hub players are taking interoperability a step further with Plug & Charge. It enables automated authentication and billing processes between the EV and the charging station without the need for RFID cards, credit/debit cards, or charging apps, while ensuring secure transactions.

Vehicle-to-grid interoperability

Interoperability goes beyond billing. Indeed, bidirectional, vehicle-to-grid, or V2G, charging technology will be crucial to EV adoption and avoiding worst-case energy scenarios as EV charging demand surges. General Motors, for example, launched GM Energy in October. It includes GM’s Ultium Home and Ultium Commercial lines. Both will offer products and services that enable bidirectional charging to increase the grid’s reliability. Ford, meanwhile, has marketed the ability of its F-150 Lightning electric pickup to power a home in the event of a blackout. V2G technology has the potential to open up new revenue streams for automakers as they become more intertwined with the power grid.

Physical charging interface interoperability

After seeing a myriad of charging plugs spur, fragmentation has been mitigated. In Europe, Combined Charging System (CCS) is the standard: AC and DC charging sit in one plug. In Japan, the standard is CHAdeMO which will be adopted this year by China. While in the US, it’s Tesla’s Supercharger. But charging goes beyond wiring. Austrian startup Easelink raised €8.3M in January last year and is pioneering new technology. Its conductive charging system, named ‘Matrix Charging’, has the ambition to set up an automated charging network for electric vehicles without the driver ever stepping out or handling the charging cable. It consists of two main components: a vehicle unit attached to the vehicle’s underbody – Matrix Charging Connector – and an infrastructure unit at the parking space – Matrix Charging Pad.

In short, harmonization of technology standards and interoperability between the electric vehicle (EV) and the grid are making inroads. Similarly, widespread public charging access is being bolstered by uberization platforms such as French startup Werenode which enables private owners to provide access to their charging points. Thus, all stakeholders in public EV infrastructure— including EVSPs, electric companies, EV supply equipment OEMs, and automakers—must continue to join forces to streamline system integration and improve customer experience.

2 Key Figures

EV charging projected to reach $420 bn by 2030

The market was valued at $35 bn in 2021 and is projected to reach $420 bn by 2030, at a CAGR of 32%.

537 funded companies

Tracxn

3 startups to draw inspiration from

Hubject

Germany-based startup founded in 2012 that is the leading e-Roaming platform in Europe giving EV drivers a seamless charging experience across borders. Hubject is backed by Enel X.

Easelink

Austria-based startup founded in 2004 that has developed a wireless EV charging system, using its Matrix Charging system. Easelink is backed by EnBW and Wien Energie.

Werenode

France-based startup founded in 2018 that has developed a decentralized marketplace, leveraging blockchain, so that anyone can share their EV charging station. Fiat, XTZ or WRC tokens can be used to pay charging sessions.

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Context 

We transformed a leading mineral supplier’s approach to innovation by helping them transition from a siloed R&D model to a comprehensive open innovation strategy. The company had been engaging with startups through isolated business units, which limited their potential for collaboration and growth. Our team was tasked with structuring a future Open Innovation department, identifying the appropriate vehicles for engagement, and determining how to organize them effectively. Through tailored workshops and our proprietary methodology, we guided the strategy team in clarifying their innovation objectives and developing a robust portfolio of initiatives.

Mission

• Carried out an audit on their knowledge of the different vehicles available at hand
• Definition of the objectives of the future open innovation department in line with the group’s strategy
• Evaluation of the different vehicles to meet these objectives
• Selection of 5 complementary vehicles to form a portfolio
• Definition of a ramp-up roadmap (walk, run, fly) for the deployment of these vehicles and associated human resources
• Support in the design of the future governance

Key figures

Context 

With over 1 million startups operating in the world, it takes time and expertise to build a robust deal flow. Yet, its quality is the cornerstone of success of Open Innovation, CVC, M&A and Strategy teams.

Aster Fab’s mission was to build for our client a robust startup deal flow from scratch, and then, throughout the last four years, to be in charge of qualified deal sourcing.

Mission

• Mapping of the topics and technologies of strategic interest to the group
• Selection of 10 topics to carry out deep dives on throughout the year
• Technology studies to deepen the group’s knowledge of a given technology and analysis of weak signals: technology analysis, patent analysis, fundraising analysis, competitor benchmark, mapping of the startups populating the space, etc.
• On-going outbound sourcing on strategic topics
• Qualification calls with the most promising startups
• Bi-monthly presentations to the client of qualified startup opportunities

Key figures

Context 

Industries are facing increasing pressure to reduce their carbon footprint swiftly.

Conducting a carbon footprint assessment is a starting point, as it allows to amount the company’s greenhouse gas emissions (GHG), compare them to established benchmarks and devise a robust decarbonization trajectory.

Aster Fab was missioned to conduct the company’s carbon assessment (scope 1, scope 2 & scope 3) and support in the establishment of their decarbonization trajectory.

Mission

• Definition of the organizational perimeter and operational scope 
• Data collection carried out in coordination with the client-side data collector (scope 1, scope 2, scope 3)
• Formulation of assumptions for missing emission factors
• Emission calculation and input of data into a structured table
• Creation of graphs to highlight the most important sources of emissions
• Recommendations on the action levers to reduce the carbon footprint and establishment of the client’s decarbonization trajectory

Key figures

Context 

Our client has long been a leading manufacturer of machinery for the construction, agricultural and logistics sectors.

More specifically, in recent years, the group has been developing electric machinery. Within the framework of this strategic orientation, our client has a double challenge: to invest in innovative technologies and to develop its electric vehicle business in order to present a competitive offer that meets the market’s needs.

Aster Fab’s mission was to support our client in the closing of a deal with a modular battery startup. In addition, Aster Fab has been commissioned to work on other M&A deals carried out by the group.

Mission

• Valuation of the startup using five different methods (comparable company analysis, precedent transactions, DCF analysis, R&D headcount, replacement cost value)
• Structuring the acquisition proposal by drafting the letter of intent setting out the terms, governance, management package, performance criteria, etc
• Assistance, coordination and negotiation with all stakeholders throughout the process until the completion of the transaction
• Support in the preparation of separate documents for the governance bodies: Audit Comittee, Strategic Committee and Board of Directors
• Coordination of the due diligence and the closing of the deal

Key figures

Context 

In a context of growing importance of EVs, our client’s core business (lubricant supplier) in thermal systems was set to be disrupted.

Driven by the belief that startups are a goldmine for its profound transformation, the client’s Innovation department wanted to explore the opportunity of creating a CVC.

Aster Fab’s mission was to support the client in its thinking and design the presentation to the board.

Mission

The final deliverable was structured in 4 steps:

• Benchmark and best practices to give the client food for thought on the variety of CVCs that exist and their key performance indicators.
• Investment strategy and thesis to support the client in defining these two key elements. On the one hand, we helped the client define the investment criteria (startup maturity, geography, portfolio model, ticket size, etc). On the other hand, we fine-tuned the topics of interest to reach a higher level of granularity.
• Structure and governance to support the client in the architecture of the CVC fund. Topics included fund size, level of independence, legal status, governance operating model, processes, document templates, etc.
• Calendar for structuring the workflows for the launch of the CVC.

Key figures

Context 

In a context of growing pressure on the grid, the Innovation department of a major European Transmission System Operator (TSO) wanted to set its innovation priorities for the coming year.

Convinced that the work done internally lacked methodology, Aster Fab’s was asked to map all the technologies of strategic focus.

Mission

We carried out a study into four steps:

• A megatrend analysis to paint a complete picture of all megatrends impacting TSOs in the short and long term. By combining this analysis with the group’s strategy, we were able to identify all the associated challenges for our client.
• Technology analysis to scout and navigate through the technologies to address these challenges. Through this analysis, we were able to prioritize and categorize the technologies and sub-technologies.
• Technology map to present in a visual way to the board the technologies of focus. 5 clusters, 27 technologies and 140 sub-technologies were mapped.
• Prospective analysis on 10 selected sub-technologies to give our client a first flavour of potential applications, the startups operating in the space and other weak signals of interest.

Key figures

123Fab #95

1 topic, 2 key figures, 3 startups to draw inspiration from

Generating renewable power is vital to the world’s decarbonization efforts. But so too will be developing the energy storage systems that are required at times when the intermittency of solar and wind power prevents energy production. According to the International Energy Agency (IEA)’s Net Zero scenario, installed grid-scale battery storage capacity expands 44-fold between 2021 and 2030 to 680 GW.

Amongst the various stationary battery energy systems, lithium-ion batteries have been stealing the spotlight in recent few years due to their success in e-mobility. While they account for 90% of battery applications, even lithium iron phosphate, the most competitive type of lithium-ion battery, is beginning to look economically uncompetitive compared to emerging, alternative solutions. Last week’s announcement by BASF Stationary Energy Storage GmbH (wholly owned subsidiary of BASF SE) and G-Philos (Korea’s leader in power-to-gas technology) to intensify their cooperation on sodium-sulfur (NAS) stationary batteries is an example of this.

But what are the other alternatives in the space?

A number of companies are working on new battery chemistries based on zinc, iron and other low-cost materials. Fundraising in the startup ecosystem is a strong signal:

• Form Energy (United States) raised $450M in October 2022 and has developed an iron-air battery
• H2 (South Korea) raised $15M in October 2021 and has developed a vandium redox flox battery
• EnerVenue (United States) raised $137M in September 2021 and has developed a nickel-hydrogen battery
• Ambri (United States) raised $144M in August 2021 and has developed a high-temperature calcium-antimony battery 
• Sila NanoTechnologies (United States) raised $600M in January 2021 and has developed a silicon battery
• Tiamat (France) raised $4.2M in October 2018 and has developed a sodium-ion battery

Researchers are also exploring other chemistries such as aluminium-ion batteries (paper) and potassium-ion batteries (paper). Indeed, aluminium is one of the most abundant materials on earth (reducing the cost) and has demonstrated great potential for high energy density systems. Although at a more embryonic stage, the significant advantage of potassium is also its abundance.

Many of these batteries already rival lithium-ion in capabilities but are lagging in capital investiture and manufacturing infrastructure, playing catch-up with an already established sector of the industry. Thus, the European Commission has notably launched the NAIADES (sodium-ion batteries), SOLSTICE (sodium-zinc batteries) and CARBAT (calcium-ion batteries) projects to help fund the research in these spaces. Live installations are also visible. France-based startup Tiamat, developer of a sodium-ion battery, has joined forces with Plastic Omnium in the automotive industry and with Startec to extend applications to other hybrid industries such as rail and aerospace. While Schlumberger has invested and signed a collaboration agreement with EnerVenue, developer of a nickel-hydrogen battery.

In short, lithium-ion batteries will continue to dominate battery technology for stationary energy storage in the short term, driven by the EV sector. But in the long term, alternatives to lithium-ion are set to play an increasingly important role in stationary energy battery storage systems.

2 Key Figures

The stationary battery market is projected to reach $224.3 bn by 2030

The market was valued at $31.2 bn in 2021 and is projected to reach $224.3 bn by 2030, at a CAGR of 24.9%

>30 funded companies

Tracxn

3 startups to draw inspiration from

Form Energy

US-based startup founded in 2009 that has developed an iron-air energy storage system for renewable energy storage. Claims to store energy at less than 1/10th the cost of lithium-ion battery technology.

H2

South Korea-based startup founded in 2010 that has developed a vandium redox flox battery. This month the startup begun construction of a factory with 330MWh annual manufacturing capacity in the city of Gyeryong-si, one year after the 20MWh project in California.

Tiamat

France-based startup founded in 2017 that has developed a sodium-ion battery. Partnerships include Plastic Omnium and Startec.

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