SIP Global Partners Announces Investment in XL Batteries, Developer of Low-Cost, Long-Duration, Grid-Scale Flow Batteries
FEBRUARY 24, 2023
NEW YORK / TOKYO — (PRWeb / PR Times) — SIP Global Partners, a US-Japan VC firm investing in early-stage decarbonization technology, announced today its investment in XL Batteries, Inc. (“XL”), a developer of low-cost, long-duration, grid-scale flow batteries for the alternative energy grid. SIP participated in the $10M Seed funding round which included investment from Xerox Ventures and Catalus Capital.
There is a large-scale supply and demand imbalance in today’s grid scale energy storage landscape. Lithium-ion batteries prioritize size and weight over scale and duration, making them unsuitable for applications lasting greater than 8 hours. While flow batteries are optimized for scale, duration and cost, existing chemistries are highly volatile and unstable.
XL has designed safe, proprietary non-corrosive organic chemistry specifically for large-scale flow battery architecture. The highly stable, non-flammable system is capable of long duration discharge (8 – 24 hours) and cycle life (20+ years). Over months-long tests and 1000’s of cycles, XL has recorded 0% degradation.
“We’re exceptionally excited to be working with the XL Battery team as they bring their revolutionary battery chemistry to market. The industrial and utility markets for cost effective grid scale flow batteries is enormous. We’re especially enthusiastic to support market entry efforts in Japan and the Middle East,” stated Jeffrey Smith, General Partner of SIP GP.
The company has secured two key development partnerships. Xerox Research Centre of Canada (XRCC) has been engaged to productize the battery’s specialized organic molecule for pilot-scale manufacturing. Xerox Ventures expressed support for this partnership through participation in the round.
Stolthaven Terminals signed a memorandum of understanding to develop an industrial-scale flow battery for ports and heavy industry. This will support a transition to green energy usage in industrial and residential areas.
“SIP is a perfect partner for XL Batteries. As a deep tech investor, they invest in technology that can disrupt the largest industries in the world to decarbonize our society. This perfectly aligns with XL’s mission to enable the energy transition through long duration energy storage,” said Tom Sisto, CEO and Co-Founder of XL Batteries.
Long duration batteries will reduce waste within the existing energy infrastructure and allow widespread electrochemical storage. SIP believes these systems will unlock the full potential of renewable energy and enable the energy transition.
About SIP Global Partners
SIP Global Partners invests in early-stage companies driving the decarbonization of the world’s largest emitting industries at GNP level scale. SIP leverages its dual-headquarters in the US and Japan, its principals’ 40-year history of building global companies and unique market access to accelerate growth for portfolio companies in Asia, including Japan, ASEAN and MENA. For more information, visit sipgp.com.