The German Automaker’s Electric Vehicle Sales Are Surpassing the Iconic 911 Sports Car
Porsche has taken note of the changing times. With its first electric vehicle outselling the quintessential 911 sports car, the company is increasing its bet on EVs. This shift is evident in a significant investment made by Porsche in lithium-silicon battery developer Group14 Technologies.
A Hefty Investment in Lithium-Silicon Battery Developer Group14
The German automaker has injected $100 million into Group14 as part of a larger $400 million Series C funding round. Other investors who have chipped in include Canadian pension fund OMERS, Decarbonization Partners, private equity firm Riverstone, Vsquared Ventures, and Moore Strategic Ventures.
Group14’s Key Technology: Silicon-Carbon Powder
Group14’s key technology is a silicon-carbon powder that can either replace or augment graphite anodes. Graphite is used in most of today’s lithium-ion batteries, and it’s a sensible anode because it’s stable and can store a reasonable amount of energy. However, as automakers push for higher energy densities, graphite is being pushed up against its limits.
Silicon: An Attractive Alternative
Silicon is an attractive alternative since it’s able to hold far more lithium – theoretically up to 10 times more. But this same benefit is also the silicon’s Achilles’ heel. Because silicon absorbs so much lithium, the molecular-scale expansion and contraction can degrade the anode’s structure, leading to premature failure.
Group14’s Solution: Carbon-Silicon Material
Group14 is one of many startups racing to develop silicon-based anodes that can be repeatedly charged and discharged without breaking down. To do that, the company infuses a porous carbon scaffold with a silicon-containing gas. The end result is a carbon compound that’s peppered with nanoscale silicon particles. Those particles serve to grab hold of lithium ions while the carbon scaffold serves as a stable structure so the anode doesn’t decompose as it’s used.
The Benefits of Group14’s Carbon-Silicon Material
Group14 says that its SCC55 material can be blended with graphite anodes, too, and that it can be dropped into an existing battery production line with few modifications. The startup claims that its carbon-silicon material can store 50% more energy than traditional graphite anodes.
Production Plans for Porsche Battery Packs
Group14 has one battery materials plant online currently and has two more in the works, one a joint venture with SK Group that’s coming online later this year and another that’ll start producing in 2023. Group14 appears to be targeting production for Porsche battery packs in 2024.
A Boost to Decarbonizing the Auto Industry
Advancing battery technology is crucial for decarbonizing the auto industry. With its investment in Group14, Porsche is taking a significant step towards reducing its carbon footprint and contributing to a more sustainable future.
A Mixed Bag: The Investors
While Porsche’s investment in Group14 is a positive development, some of the other investors involved may raise eyebrows. OMERS, for instance, has been criticized for its investments in fossil fuel companies. Decarbonization Partners, on the other hand, seems like a more promising investment partner.
The Road Ahead
As the world continues to shift towards electric vehicles, Porsche’s investment in Group14 is a timely move. With its focus on developing sustainable battery technology, Group14 is poised to play a significant role in the auto industry’s transition to EVs.
