The Pitch Show - Revolutionizing Energy: Will VCs Back 3D-Printed Conformal Batteries?
Gabe Elias, CEO of Material, presents a novel approach to battery manufacturing using 3D printing technology to create batteries of any shape and size. This innovation addresses the constraints of traditional battery shapes, allowing for more efficient use of space in devices like drones, cars, and smart glasses. Elias, with a background in Formula 1 car design, emphasizes the potential for this technology to meet the growing energy demands driven by AI and electric vehicles. The company's unique manufacturing platform combines a specialized nanomaterial blend and additive manufacturing techniques, offering a competitive edge in the battery market. Despite the challenges of entering a competitive industry, Material has developed a cost-effective method to produce nanomaterials in-house, significantly reducing production costs. Elias seeks $3 million to advance commercialization and pilot agreements, highlighting the potential for high margins and transformative impact on the energy sector.
Key Points:
- Material's 3D-printed batteries can be made in any shape, increasing device efficiency and energy density.
- The company uses a unique nanomaterial blend and additive manufacturing, reducing production costs.
- Gabe Elias leverages his Formula 1 experience to drive innovation and efficiency in battery design.
- Material aims to address the energy supply crisis by meeting the growing demand for efficient batteries.
- Elias seeks $3 million to further commercialization efforts and secure pilot agreements.
Details:
1. 🔋 Imagining a New Battery-Powered World
- The concept of a world where devices are no longer constrained by traditional battery sizes and shapes highlights significant advancements in battery technology.
- These innovations could result in drones achieving greater flight times and capabilities, electric cars offering extended ranges, and smart glasses becoming lighter with longer battery life.
- Such advancements promise to improve efficiency and performance across a range of technology sectors.
- Examples include companies like Tesla and SolidEnergy Systems, which are leading in developing high-energy-density batteries.
2. 📉 Energy Supply Crisis and Battery Market Dynamics
2.1. Energy Supply Crisis Impact
2.2. Battery Market Dynamics
3. 🎙️ Gabe Elias: From Formula 1 to the Pitch Stage
- Gabe Elias transitioned from a career in designing Formula 1 cars to founding a company that revolutionizes battery manufacturing through 3D printing technology.
- His venture allows for the production of batteries in any shape or size, introducing a unique and flexible approach to the industry.
- Elias was motivated by a desire for greater challenges, leaving a stable job to pursue entrepreneurship without waiting for the 'right time.'
- His strategy focuses on attracting investors who are aligned with his vision of transforming the battery industry with innovative technology.
- Despite the risks, Elias is committed to his vision, demonstrating a proactive approach to seizing opportunities in the tech industry.
4. 🏎️ Revolutionizing Battery Manufacturing with 3D Printing
4.1. Introduction and Company Vision
4.2. Demonstration and Competitive Landscape
4.3. Manufacturing and Scalability
4.4. Background and Experience
4.5. Challenges and Market Strategy
4.6. Investor Feedback and Future Outlook
5. 💼 Navigating Business and Investor Challenges
- Nanomaterial development is identified as the highest cost portion of the company's battery production, and efforts are being made to bring this in-house to drive costs down.
- Lowering the cost of nanomaterials is expected to open up more applications and offer better pricing for customers, impacting various electronics like supercapacitors, chips, and solar panels.
- There's a tension between reducing costs and maximizing the value customers are willing to pay, with an acknowledgment that some customers are willing to pay a premium for the increased complexity and value provided.
- The battery industry faces price constraints due to an oversupply from China, but there's potential to charge more if customers understand the value proposition.
- Pilot customers are crucial in validating the ability to increase prices as the complexity and value of products increase.
- Optimizing electronic devices by reducing parts can lead to better products and increased margins.
- The founder has been acknowledged for the rapid hardware development cycle, though there are concerns about achieving higher margin potential, which is crucial for investor conviction.
- Ultimately, despite the impressive engineering and development, the business was not a fit for the investor due to concerns about realizing higher margins.
6. 🔍 Investor Feedback and Strategic Reflections
6.1. Pricing Strategy Insights
6.2. Capital Raising Challenges
6.3. Strategic Alignment and Mindset
7. 📈 Post-Pitch Insights and Future Directions
- Gabe exited the pitch room without commitments due to 30% margins being a dealbreaker.
- Paige revisited Gabe's pitch, highlighting an opportunity in high-margin products and the potential of nanomaterials.
- Gabe has 1.1 million of his funding round committed, showing progress despite pitch setbacks.
- The battery production cost is $390 per kWh, with a 20% margin, competitive against market prices of $950-$3,000 per kWh.
- There is potential to increase margins by targeting specialized markets with higher willingness to pay.
- The novelty of the battery's flexible shape and lightweight design could justify a premium price.
- Nanomaterials, developed at a 100x cheaper cost than lab scale, could be a separate revenue stream due to high market demand.
- Potential exists to sell nanomaterials at $10,000 per kilo, with the capacity to sell $1 million monthly.
- Gabe's focus remains on batteries, despite the lucrative potential of nanomaterials.
- Future strategies might include expanding the nanomaterials market if proven viable.
- Gabe has secured 1.5 million of a $3 million round, indicating investor interest in his vision.