Soteria is a lithium-ion battery company developing a novel foil and separator technology to create a new standard for safety in battery technology. The company’s technology is designed to create a low cost, inherently safe battery by eliminating the components that cause damaged and punctured cells to combust. The company is licensing its novel foil and separator to its partners to create a universal standard in lithium-ion battery safety. Soteria has built a consortium of 100+ battery builders, device manufacturers, material producers, and end users to democratize R&D and adoptability of the technology.
Lithium-ion batteries have a host of issues with durability and safety, with continuous negative public events resulting in billions of dollars in recalls and replacements. Soteria has set out to eliminate these events from occurring by creating a fully compatible battery foil technology to endure damage to the system without causing the battery to ignite.
Soteria has developed an inherently safe lithium-ion cell that will revolutionize and democratize safety for the lithium-ion battery industry across all chemistries, forms, and electrodes.
Soteria has developed an inherently safe battery technology leveraging a novel film and separator designed to eliminate lithium-ion battery fires caused by damage, dendrites, or punctures. Additionally, the battery continues to function at greater than 85% capacity after an incident. The technology replaces two key components in traditional lithium-ion batteries: the foil and the separator. Soteria exchanges the standard aluminum and copper foils for Soteria’s novel metalized film foil. which is a thin metal that allows energy to flow through the foil but will burn out in the event of a fire, stopping the spread and danger. The second element that is replaced is the plastic separator. Soteria employs their novel Dreamweaver separator, a nanofiber-based woven separator interwoven with kevlar, which is strong enough to withstand injury and creates a dead spot in the battery instead of causing a fire.
Business Model and Status:
Soteria’s business model and revenue generation comes in two forms: licensing revenue/royalties and consortium membership. The licensing revenue and royalties emerge from the consortium and others use of the technology and IP developed by Soteria. The breakdown looks as such:
<2% of cell cost for the current collector
5% of the cost of the separator
Soteria licenses on FRAND terms to ensure that everyone who uses a lithium-ion battery has access to the same safety standards and products. Soteria is creating a global safety initiative for what will be a ubiquitous technology in this and the coming decades
Outside of Soteria’s core technology, the company has created a consortium of over 100 of the world leading battery builders, device manufactures, materials suppliers, and end users to join in the R&D efforts of Soteria and democratize safety. More specifically, the consortium consists of manufacturers of separators, collector membranes, and cell & pack level developers. The consortium leverages Soteria’s technology to run pilots and test projects, effectively giving Soteria a 10:1 ratio of external to internal R&D dollars. In short, the consortium allows Soteria to democratize the R&D process and allow its members to lead their own projects. Members also pay a fee to be in the consortium.
To date, Soteria has booked over $200k in revenue from licensing agreements and $600k in revenue from consortium membership fees.
Soteria’s technology is currently engaged in commercialization projects beginning Q4 2021, including projects with SVolt, who will be employing Soteria’s technology to design cells and scale production, and KULR and AgEagle, drone companies who will be developing packs for their fleets, with the latter performing field demos in Q4 2021.
Soteria’s initial markets are aimed at small battery pack devices, including E-Bikes/E-Sports vehicles, drones, power tools, and low-speed EVs, collectively representing a TAM of $25 billion in cells by 2025. For Soteria, this would equate to $500 million in royalty potential. As Soteria’s technology becomes boardly piloted and accepted, Soteria plans to move and begin licensing its technology to the full electric vehicle market, representing a $200 billion market size and $4 billion royalty potential. Soteria has a clear pathway to enter. the EV market. With 20 consortium members in the electric mobility industry, Soteria hopes to nurture and grow this group by engaging with and piloting their technology in EVs, with a goal of having them adapt within a 3-6 year timeframe.
Soteria is not developing its own battery, but rather a system of components that can be adapted to any battery chemistry, electrode, shape, etc. Therefore, its competitions are component providers of foils and separators.
, CTO - Carl is an experienced battery researcher and developer, previously working at two lithium-ion battery startups, directing research and development
Soteria is currently raising a $5 million Series B bridge round with a 20% discount and $48 million valuation cap. The team plans to expand into a full $25 million Series B round and is seeking a lead investor. The use of funds will go to increasing the size of the team, partners, and technology for scaling into its current markets
Soteria sees its exit potential through an IPO, due to its broad exposure, consumer-facing brand, and the overall sectoral strength of lithium-ion batteries across a variety of different industries and verticals. Soteria will begin to think about an IPO once the company has booked over $10 million in revenue, have become an established commercial player with consistent growth in royalties, and have solidified their position in the EV market. The Soteria team predicts a $1-2 billion valuation at IPO.