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ACT-ion secures $7.5 million in a Pre-Series A funding round led by BASF Venture Capital, with support from Hunt Energy Enterprises, Mirae Asset Capital, Arosa Capital Management, and LG Technology Ventures. The investment will accelerate the development of its continuous manufacturing process for cathode active materials, aiming to reduce production costs and improve battery performance. With plans to establish a pilot facility by 2025, the company moves closer to scaling its technology for broader industry adoption.
A Major Milestone in Battery Technology
ACT-ion Battery Technologies, a company specializing in lithium-ion battery cathode active materials (CAM), has secured $7.5 million in a Pre-Series A funding round. The investment will accelerate the company’s efforts to enhance CAM production efficiency and reduce manufacturing costs. The funding round was led by BASF Venture Capital, with contributions from Hunt Energy Enterprises, Mirae Asset Capital, Arosa Capital Management, and LG Technology Ventures.
Founded in 2019, ACT-ion focuses on a chemistry-agnostic approach to CAM manufacturing. By optimizing production methods, the company aims to overcome major cost constraints in the lithium-ion battery supply chain. The funding will support the development of an operational pilot facility, expected to be a key step toward large-scale adoption of ACT-ion’s innovations.
Who Backs ACT-ion? Meet the Investors Behind the Deal
BASF Venture Capital, a leading investor in advanced materials and energy solutions, led the funding round. The firm’s focus on sustainable chemistry aligns with ACT-ion’s mission to improve battery material production.
Other participants in the round include:
- Hunt Energy Enterprises – An energy technology venture group investing in cleantech and industrial innovations.
- Mirae Asset Capital – A financial institution supporting high-growth sectors, including energy storage and advanced materials.
- Arosa Capital Management – A private investment firm specializing in alternative and renewable energy ventures.
- LG Technology Ventures – The venture capital arm of LG Group, with a strong focus on mobility, next-generation batteries, and advanced materials.
The backing from these firms reflects the growing interest in efficient battery production technologies and the need for cost-effective manufacturing solutions.
What Makes ACT-ion’s Technology Stand Out?
ACT-ion has developed a continuous manufacturing process for coated single-crystal cathode active materials. This innovation results in higher-performance lithium-ion batteries with longer cycle life. Unlike traditional methods that require high energy input and complex processing, ACT-ion’s approach reduces production costs while maintaining material quality.
The process supports multiple chemistries, allowing flexibility in battery design. This adaptability makes it suitable for applications in electric vehicles, power tools, drones, and energy storage systems. The ability to streamline CAM production with lower energy consumption gives ACT-ion an advantage in the evolving battery materials market.
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How ACT-ion Plans to Use the $7.5 Million Investment
The funding will accelerate the company’s efforts to scale its CAM production technology. ACT-ion is preparing to establish an operational pilot facility by 2025. The facility will demonstrate the company’s continuous manufacturing platform and validate its effectiveness with industry partners.
Key areas of focus include:
- Expanding production capacity to meet growing market demand
- Strengthening partnerships with battery manufacturers and research institutions
- Advancing process optimization to further reduce production costs
- Refining material performance for next-generation battery applications
The pilot facility will serve as a stepping stone toward broader commercialization and mass production of ACT-ion’s technology.
Why This Matters for the Future of Battery Manufacturing
The demand for lithium-ion batteries continues to grow, driven by the expansion of electric vehicles, consumer electronics, and grid storage solutions. Current manufacturing methods struggle with high costs and supply chain inefficiencies. ACT-ion’s approach provides a scalable alternative to conventional CAM production.
By reducing material costs and improving throughput, ACT-ion’s technology could support domestic battery manufacturing efforts. This is particularly relevant as the industry looks to strengthen local supply chains and reduce reliance on overseas production. With increasing investments in energy storage solutions, advancements in cathode material technology will play a critical role in shaping the future of battery performance and sustainability.
What This Means for ACT-ion and the Battery Industry
The successful funding round strengthens ACT-ion’s position in the competitive battery materials sector. With financial backing from key industry investors, the company is set to expand its operations and bring its production technology closer to full-scale deployment.
As energy storage demand continues to grow, efficient CAM manufacturing will be essential for meeting industry needs. The ability to lower costs without compromising quality gives ACT-ion an opportunity to contribute to the evolution of battery technology. The progress made through this funding round will be closely watched by manufacturers and stakeholders seeking improvements in lithium-ion battery production.
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