Source: Fortune
Summary
Steven Prast, COO of battery startup Holyvolt, argued in a Zoom interview with Fortune that lithium-ion battery technology is only 10–20% through its maturity curve. He said the West cannot compete with China on existing battery chemistries and must instead focus on developing new materials. Holyvolt raised $45 million in equity funding to pursue alternative battery chemistries, valuing the company at $245 million. The startup is focused on creating cathode materials that do not rely on Chinese-dominated chemistries like NMC or LFP.
Our Reading
The announcement sounds familiar.
Prast says China dominates battery materials and that the West must find new chemistries.
Holyvolt is investing in AI and lab testing to speed up R&D.
The company plans to commercialize a new cathode material by 2027.
The numbers tell one story: the West is playing catch-up in a China-dominated market.
Author: Evan Null
A chemistry problem
Prast argues that battery development is fundamentally different from computer chip progress. Unlike Moore’s Law, which follows predictable physics, battery chemistry remains full of unknowns. He said that while computer models can design airplanes, battery development still requires hands-on lab work. This belief places Holyvolt in a minority within the AI-driven science field, where most companies rely on computational models without physical testing.
The bet
Holyvolt’s strategy hinges on its merger with Wildcat Discovery Technologies, a San Diego-based lab that tests thousands of battery materials in parallel. The company has run over 225 projects for more than 85 customers, including BMW. Holyvolt’s CEO, Mathias Ingvarsson, said the firm built its AI models from the lab data, rather than starting with models and then seeking data. This approach, he said, is difficult but necessary for real breakthroughs.
The deadline
Holyvolt’s first product, DRX, is a cathode material that avoids nickel and cobalt. Prast said it offers performance similar to NMC but at a cost comparable to LFP. The company plans to commercialize DRX in 2027, just in time for a U.S. defense law that restricts purchases from Chinese battery makers. Holyvolt also aims to expand into mobility and data centers, where high-power bursts are needed.
‘I’ve seen this movie before’
Prast, who grew up in the auto industry, sees the current battery race as a repeat of past industrial shifts. He said the U.S. must avoid over-concentration in any one region or company. Ingvarsson echoed this sentiment, noting that Volvo, a Swedish automaker, is now owned by a Chinese company. Both executives emphasized the need for diversified supply chains and technological independence.
Scaling challenges
Holyvolt does not plan to build gigafactories, instead focusing on licensing and partnerships. Prast said the real challenge is scaling up from lab to industrial production. The company is not looking to compete with China on existing chemistries but to create new ones that the West can control. This strategy reflects a broader effort to reduce reliance on Chinese-dominated battery supply chains.
