1、Awaiting designElectric Vehicle Battery Tech in the UK2023January 2023WIPPage/2 Dealroom.co is the foremost data provider on startup,early-stage and growth company ecosystems in Europe and around the globe.Founded in Amsterdam in 2013,we now work with many of the worlds most prominent investors,entr

2、epreneurs and government organizations to provide transparency,analysis and insights on venture capital activity.Global startup&venture capital intelligence platform.UK Research and Innovation convenes,catalyses and invests in close collaboration with others to build a thriving,inclusive research an

3、d innovation system that connects discovery to prosperity and public good.The Faraday Battery Challenge is delivered by Innovate UK for UK Research and Innovation on behalf of the UK government.With an investment of 541 million between 2017 and 2025,the challenge aims to make the UK a science superp

4、ower for batteries.By supporting the UKs world-class battery facilities along with growing innovative businesses that are developing the battery supply chain for our future prosperity.This is delivered through three partners;the Faraday Institution,Innovate UK,and UK Battery Industrialisation Centre

5、,and sitting as part of a wider and interconnected support programme for battery development and commercialisation.Building a thriving,inclusive research and innovation systemPage/3 The UK Electric Vehicle BatteryEcosystemThe Electric Vehicle(EV)landscape is a vast interconnected ecosystem.This repo

6、rt focuses on its foundation component,EV batteries.Vehicle integrationAutonomous VehiclesEdtechHelp users learn or operate better by making learning more affordable,efficient or effective.Legal TechHelp users access legal expertise or justice,facilitate regulatory compliance and the practice of law

7、.Cyber SecuritySafetytechProtect users from harmful online content,create a safer and more accessible cyberspace.Excluded:EV ChargingEV MarketplacesRenewable energyAdvanced materialsEV(parts)manufacturing SemiconductorManufacturingEV Fleet optimisation Other cell and battery manufacturingSource:Deal

8、room.coEnergy storage(not for EV)Tier 2Tier 3Scope of this reportPage/4 The EV Battery ecosystem-material manufacturing to recycling.Deep TechEV Battery manufacturingEV Battery recycling&second lifeEV Battery management systemsEV Battery material manufacturing Li-ion cell manufacturingThe UK Electri

9、c Vehicle BatteryEcosystemEV Battery supply chainSource:Dealroom.coPage/5 The value of the UK EV Battery tech ecosystem has dropped since 2021,but overall value of private startups is still growing.The UK EV Battery tech ecosystem grew in value to reach$10.8B in 2021.It was cut 75%to reach$2.7B in 2

10、022.The value of private startups continues to grow overall,however,and excluding Britishvolt has doubled since 2021.20202001720212022$2.7B$10.8B$2.2BCombined enterprise value of UK EV Battery startupsValue of public companiesValue of private companies UK EV Battery startups raised$438M,t

11、heir second best year on record.Investment has grown 5.7x between 2017 and 2022,to reach$438M.Growth in investment has been driven by late stage rounds and a few megarounds,raised by Nexeon,Zenobe and Arrival.20202001720212022$438MInvestment raised by UK EV Battery startupsThe UK EV Batte

12、ry ecosystem ranks second in Europe for VC Investment.With$1.2B raised since 2018,the UK ranks second in Europe,and third worldwide(excluding China).United StatesSwedenUnited KingdomSouth KoreaCanadaTaiwanCombined VC Investment in EV Battery startup since 2018*$1.2B$232M$459MKey takeaways.$100M$300M

13、$400M$200M$500M$55MVC Investment in UK EV Battery startups view online20202001720212022$418M$229M$456M$74M$34M$77MSource:Dealroom.co.*2022 Valuation of Britishvolt has been adjusted following the news of its liquidation.*China is excluded from this analysis.Valuation of Britishvolt Page/6

14、 To change partner logos on bottom right go to Slide-Edit themeThen follow these steps:1.Right click anywhere on the slide in the Theme editor and press Guides-Show guides2.Then paste the needed logo and fit it inside the thicker red dashed(NOT DOTTED)lines.3.Then copy+paste the partner logo on all

15、the other slides.It will paste in the same position so you dont have to adjust it again.4.If you want the logo to be white(on darker backgrounds)select the logo.Go to Format Options on the top menu.Select Adjustments and move the Brightness to the far right.DESIGN CONTENTThe UK EV Battery ecosystem1

16、23Funding landscapeGlobal competitivenessTable of contentsCo-authors:Thomas BartlettDeputy Directorat Faraday Battery Challenge Innovate UKNina ChaloumEcosystem Innovation Analystat DealroomLouis Geoffroy-TerrynGovernment Research Lead at DealroomWith contributions from:Rick HaoPartnerat Speedinvest

17、Alex GawleyFounder&General Partnerat Zero Carbon CapitalIan CampbellCEO&Co-founderat Breathe Battery TechnologiesAnna Wise Ph.D.Head of Strategic Programmesat NyoboltJordan FletcherKnowledge Transfer Manager-Investment Communitiesat Innovate UK KTNAoife Morrin Government Engagement Managerat Dealroo

18、m1The UK EV Battery ecosystemDesign team can help with graphics of the divider slides.Font:Open Sans Bold 30 ptDESIGN CONTENTPage/8 Combined enterprise value of UK EV Battery tech companies founded since 1990 view onlineSource:Dealroom.co.*2022 Valuation of Britishvolt has been adjusted following th

19、e news of its liquidation.Distinction between public and private value is made based on current ownership of each respective startup.20202001720212022 Value of public companiesValue of private companies$2.7B$10.8B$2B$10B$6BPost SPAC IPO March 2021Current Valuation September 2022$2.1B$13B$

20、1.4B$3.9BUK EV Battery tech startups are now worth$2.7B,a 75%drop since 2021.The value of private startups continues to grow overall,however,and excluding Britishvolt has doubled since 2021.$2.2B*$1.1BExcluding the valuation of Britishvolt,the value of private startups has doubled between 2021 and 2

21、022.Page/9 Cohorts,by year founded 2015-now 2010-2014 2005-2009 2000-2004 22%$10B$5B$10.8B2.7B$3.9B20202001720212022 Combined enterprise value of UK EV Battery tech companies since 1990 view online49%69%20%Enterprise value per launch yearClose to 50%of the value is concentrated in compani

22、es founded since 2015.Source:Dealroom.coPage/10 -nowFounded in the UK,HQd abroadDesign neededRead the full interviewRick HaoPartner at SpeedInvestThe opportunity presented in the EV battery space is enormous.In a nominal scenario(to fulfill stated environmental policies),the world needs

23、 to build over 100 million EVs before 2030.This means we need at least 10 x capacity increase in battery products related to EV application,increasing from 0.16 TWh today to 1.6 TWh in 2030.Outside a nominal scenario,it is possible the transportation sector will need to contribute much more to clima

24、te goals,which could result in over 200 million EVs and a 20 x battery capacity increase before 2030.With this level of demand,the strain is placed at each part of battery supply chain,from mining to recycling.”“Page/11 -nowFounded in the UK,HQd abroadDiscover the most promising UK EV B

25、attery tech companies using predictive signals.Design neededSource:Dealroom.co Explore the UK EV Battery ecosystemPage/12 Unicorns and$1B exits$250M-1B *Future unicorns$250M-1BFunded in the last 5 yearsRising stars$50M-250MFunded in the last 5 years-nowFounded in the UK,HQd abroadYear F

26、oundedDiscover UK Cyber Security Pre-Seed Opportunities 2020200162015Before 2015Design doneRising stars$50M-250MFunded in the last 5 yearsFuture unicorns$250M-1BFunded in the last 5 yearsUnicorns and$1B exits$250M-1BFunded in the last 5 yearsMost of the UKs most prominent and rising EV ba

27、ttery startups have emerged in the last eight years.Source:Dealroom.co*Arrival exited at a valuation of$13B in 2021.Zenobe is counted as part of the main scope due to their activities providing second life for EV batteries.Page/13 Enterprise value of startups in selected UK RegionsSelected startups

28、by regionScotlandExplore ecosystem per region view online view online view online view onlineWIPSouth East EnglandGreater LondonEast of EnglandSouth West EnglandYorkshire and the HumberNorth East EnglandScotlandWest MidlandsNorth West EnglandWales$1B$931M$476M$175M$145M$109M$41M$40M$25M$10MEcosystem

29、 value per UK nation®ion.Source:Dealroom.coPage/14 Battery passports Cell manufacturing&improvementModule and Pack components manufacturing&improvementBattery managementPEMD&BatteryIntegrationBattery end of lifeMaterial supply&production EVManufacturingDesign doneCore scope(Tier 1)Additional Scop

30、e(Tier 2&3)The UK EV Battery supply chain.Source:Dealroom.co.The logos shown are not exhaustive but a discretionary selection of the companies of the category.Page/15 -nowFounded in the UK,HQd abroadDesign neededRead the full interviewAnna Wise Ph.D.Head of Strategic Programmesat Nyobol

31、tA key challenge to the success of EV Battery is the transition to high volume production,and the time it takes to do so.Challenges are availability of suitable sites with sufficient power,planning and permitting requirements,limited existing skills base along with barriers to recruit internationall

32、y in cell manufacturing,as well as access to the levels of investment required.Securing sustainable supply chains is a challenge across the industry globally.”“2Funding landscapeDesign team can help with graphics of the divider slides.Font:Open Sans Bold 30 ptDESIGN CONTENTPage/17$100M$300M$400M$200

33、M$500M$55MVC Investment in UK EV Battery startups view online20202001720212022$438M$232M$459M Jan/Aug 2022$220M Late VC*Sep 2021$70M Series BJan 2022$27M Series AJul 2022$57M Series B$80M$34M$77MSelected top rounds since 2021Jun 2022$25M Series BNov 2021$24M Early VCCheckedNov 2020$198M G

34、rowth Equity VCOct 2022$118M Series AUK EV Battery tech startups raised$438M in 2022,their second best year on record.Source:Dealroom.co*Round with multiple closes.Funding rounds excluded grants and SPAC Private Placements.Page/18 -nowFounded in the UK,HQd abroadFounded since 2016Discov

35、er moreUK Cyber Security Breakout Opportunities Discover UK Cyber Security Series A+Opportunities Discover UK Cyber Security Pre-Seed Opportunities WIPVC investment in UK EV Battery startups per round size$0M-$1M (pre-seed)$1M-$4M(seed)$4M-$15M(series A)$15M-$40M(series B)$40100M(series C)$100$250M$

36、250M+20202001720212022 20%40%60%100%80%UK EV Battery Megarounds 2022$220M Late VC*2020$198M Growth Equity VC 2020$118M Growth Equity VC$113M Late VCThe UK Battery ecosystem:manufacturing process Manufacturing,construction&process industriesRaw materialsDistribution&consumptionRecord inves

37、tment years have been driven by late stage rounds&megarounds.CheckedSource:Dealroom.co*Round with multiple closes.Funding rounds excluded grants and SPAC Private Placements.Page/19 20202001720212022 Selected UK EV Battery Pre-Seed to Series B rounds Pre-Seed to Series B Investment in UK E

38、V Battery startups$0M-$1M (pre-seed)$1M-$4M(seed)$4M-$15M(series A)$15M-$40M(series B)$394M$100M$50M$99M$112M$30MEarly and mid-stage investment reached a record$108M in 2021.2022 funding fell short of last years,but is still up 2.9x from 2020.CheckedSource:Dealroom.co Funding rounds exclude grants a

39、nd SPAC Private Placements.Page/20 22%17%13%7%16%(3%per company)Top startups by total investment raised%of total funding raised by the UK EV Battery ecosystem24%Zenobe EnergyNexeonArrivalBritishvoltNyoboltRest of the ecosystem100%75%25%50%Rest of the ecosystem Nyobolt Britishvolt Arrival Nexeon Zeno

40、be Energy 100%75%25%50%16%(3%per company)100%75%25%50%Rest of the ecosystem22%(3%50 people),grownups(500 people)and result in big companies.Only companies founded since 1990,i.e.since the information age,are included in this report.Technologies developed by UK EV Battery startups are at the center o

41、f the underlying transition of the entire mobility and transportation sector towards net-zero.This report puts the UKs EV Battery ecosystem in regional and international perspective,leveraging Dealrooms extensive European and Global coverage of emerging tech ecosystems and venture capital investment

42、.China is however excluded from any benchmarking analysis.This report complements the 2021 Battery Gap report commissioned by UKRI,looking at investments in UK battery and electro-mobility technology companies.A focus on the UK EV Battery ecosystem,with a global perspective.This report focuses on st

43、artups,based in the UK,with core or partical activities are centered around battery tech for electric vehicles.2021 Report“The Battery Gap”Underlying DataThis report builds on Dealrooms proprietary database and software.Dealroom aggregates data on startups and innovation ecosystems globally from mul

44、tiple sources:harvesting public information,user-submitted data verified by Dealroom,data engineering.All data is verified and curated with an extensive manual process.The data on which this report builds is available via app.dealroom.co.For more info please visit dealroom.co or contact supportdealr

45、oom.co.Explore the UK EV Battery ecosystemon DealroomValuationThe combined valuation of the tech ecosystem is based on their market cap or latest transaction value.Transaction value is realized from exit or implied unrealised valuation from the latest VC round,which is either announced or estimated

46、by Dealroom based on benchmarks.What is a unicorn&$1B exit?Unicorns are(former)startups that reached US$1B valuation or exit at one point in time.In this report,Arrival is considered a$1B exit,having exited at with a valuation of$13.0B in 2021.Britishvolt is not featured as a unicorn following the a

47、nnouncement of its insolvency.What is a Unicorn?What is a startup?Methodology&definitionsSource:Dealroom.co Page/35 The Faraday Battery Challengeis investing to develop a UK battery technology industry that is high tech,high value and high skill.541m Design neededThe Faraday Battery ChallengeIs inve

48、sting 541m to develop a UK battery technology industry that is high tech,high value and high skill.Investor partnershipsThe Faraday Battery Challenge is committed in 2023 to supporting high growth battery companies across the UK by aligning grant funding with equity investment through the Investor P

49、artnerships Programme.This programme brings together Innovate UKs use of grant funding,and investor partners aligned funding and expertise.Its aim is to stimulate research and development in micro,small and medium-sized enterprises,whilst accelerating equity investment into those companies so that t

50、hey can grow more rapidly through innovation.Interested investors can reach out to Jordan Fletcher.Investment Readiness ProgrammeThe third edition of the Faraday Battery Challenge Investment Programme will onboard its cohort of companies in 2023.The programme provides investment support to early sta

51、ge battery companies looking to raise between 500k-3m and is run by Innovate UK KTN.The last two programmes have supported 20+companies raising over 10m in equity investment.Next round opens in 2023.Read about the Investment Readiness Program of 2022Discover the UK Batteries NetworkThe Cross-Sector

52、Battery Systems Innovation NetworkCo-funded by Innovate UK KTN and the Faraday Battery Challenge,the Cross-Sector Battery Systems Innovation Network aims to create an open and collaborative cross-sectoral community for researchers and innovators in battery manufacturing(including next-generation batteries),the related supply chain and end-users.UK EV Battery public support programmes.Investor partnerships future economy programmeAwaiting design