Unigrid, a cutting-edge startup, is on a mission to revolutionize the battery industry by making batteries cheaper and safer using sodium-ion technology. The company, led by co-founder and CEO Darren Tan, aims to provide a viable alternative to the prevalent lithium-ion batteries that dominate the market. The promise of sodium-ion batteries lies in their potential to significantly reduce costs and enhance safety, addressing two major challenges in the current energy storage landscape.
Addressing the Cost Barrier
One of the primary obstacles hindering the widespread adoption of batteries, particularly for applications like home energy storage, is cost. Lithium-ion batteries, despite their decreasing prices, still cost around $140 per kilowatt-hour (kWh) for a pack. While this reduction has spurred the growth of electric vehicles (EVs), the price remains prohibitive for extensive use in home energy systems aimed at blackout prevention.
Sodium-ion batteries present a compelling solution. According to Darren Tan, “When produced at the same scale, sodium-ion should be about half of where lithium-iron-phosphate is in terms of cost to produce because the raw materials are a hundred times cheaper.” This substantial cost advantage stems from the abundant availability of sodium compared to lithium.
Overcoming Technical Challenges
Despite the cost benefits, sodium-ion batteries have faced technical hurdles. They tend to be less energy-dense than their lithium-ion counterparts, making them bulkier and heavier—traits unsuitable for EVs. Additionally, sodium-ion batteries exhibit different charging and discharging behaviors, necessitating new electronics for management.
Unigrid’s innovation lies in its unique chemistry. By utilizing sodium-chromium-oxide in one half of the battery and tin in the other, the company has developed batteries that do not occupy more space than lithium-iron-phosphate cells, and sometimes even less. Furthermore, their power output mimics that of lithium-ion batteries, allowing the use of existing electronics. The materials used, like chromium, are also widely available, enhancing scalability. “Chromium is produced at twice the quantity of copper each year,” Tan pointed out.
Ensuring Safety and Practicality
Safety is another critical aspect where Unigrid’s sodium-ion batteries excel. Traditional lithium-ion batteries are prone to thermal runaway and can catch fire at relatively lower temperatures. In contrast, Unigrid’s batteries can withstand internal temperatures rising to several hundred degrees Celsius before risking a thermal runaway. This makes them safer for use in buildings, hospitals, data centers, and other sensitive environments. “Sodium-ion should not just be like lithium-ion, it should be way safer such that we can put it in buildings, hospitals, data centers, so we can achieve widespread distributed energy storage,” Tan emphasized.
Strategic Production and Market Entry
Unigrid’s strategy for mass production is innovative as well. Rather than building its own manufacturing facilities, the company plans to collaborate with existing smaller battery manufacturers. These manufacturers, much like TSMC in the semiconductor industry, specialize in producing other companies’ designs. Unigrid’s battery chemistry is compatible with existing equipment, enabling efficient and scalable production without the need for new infrastructure investments.
The initial market focus for Unigrid will be energy storage for buildings and small campuses. However, the company also sees potential in supplying batteries for light electric vehicles (EVs) such as scooters, motorcycles, and tuk-tuks. These vehicles are prevalent in regions like India and Southeast Asia, where high temperatures can exacerbate the risks associated with lithium-ion batteries. Tan highlighted the opportunity, stating, “There’s a huge opportunity there where the climate is very warm and lots of battery fires occur.”
Funding and Future Outlook
To bring its sodium-ion batteries to market, Unigrid has successfully raised a $12 million Series A funding round. The round was led by Transition VC and Ritz Venture Capital, with additional participation from Union Square Ventures and Foothill Ventures. This funding will accelerate the company’s efforts to commercialize its technology and achieve market entry within the next five years. “We really wanted to do something that could make a more immediate and shorter-term impact, something that we could get into the market in the next five years,” Tan said.
Conclusion
From my perspective, Unigrid’s approach to battery technology represents a significant leap forward in addressing the cost and safety challenges of current energy storage solutions. By leveraging the abundant and inexpensive nature of sodium, and through innovative chemistry, Unigrid is poised to make a substantial impact on both the energy storage and light EV markets. The company’s strategic production partnerships and recent funding underscore its potential to achieve rapid commercialization and widespread adoption, ultimately contributing to a more sustainable and resilient energy future.
