Why We Invested in Exponent Energy: 15 minutes Rapid Charging for EV Batteries
Siddharth Mehta, Investment Director, TDK Ventures
Introduction
In recent years, the electric-vehicle (EV) industry has witnessed a remarkable evolution, a testament to human ingenuity, and the relentless pursuit of sustainability. Companies like Tesla and Rivian have not just entered the market, they have catapulted EVs into the mainstream, transforming our very notion of transportation. These vehicles, once the preserve of early adopters and technology enthusiasts, are now a common sight on our roads, symbolizing a shift towards a cleaner, more energy-efficient mode of daily commuting. This rapid advancement in EV technology is not merely a trend but a critical component of the global movement toward decarbonization. The progress in this sector is a crucial linchpin as modern society strives to balance technological advancement with environmental stewardship. It represents a significant leap forward in our collective journey towards reducing carbon footprints and mitigating the effects of climate change. However, such progress is not without its challenges — or cost.
The financial barrier to buy into this eco-friendlier technology is substantial. High-end EV models from companies like Tesla and Rivian can command prices upwards of $70,000. While there is a noticeable trend of declining costs, making these vehicles more accessible to a broader demographic remains elusive. This is particularly prohibitive in more price sensitive regions like India, Africa, or South America, where economic disparity is often more particularly pronounced — and yet simultaneously where the need for decarbonization is just as critical. The finer details of EV cost may be subject to various economic markets and demand signals, but the goal for decarbonization is universal.
We will explore how Exponent Energy has positioned itself as a leader in the EV technology field, a “King of the Hill” in rapid charging EV battery technology. Their innovative approach and dedication to making EVs more accessible have resonated with our mission at TDK Ventures. Our partnership is founded on a shared vision of a global energy transformation — one that is inclusive, equitable, and within reach for every society, regardless of economic status.
EV Technical Gaps and Opportunity
Building on the foundation of innovation and the quest for sustainability, the electric-vehicle industry now faces a pivotal moment. The technical gaps and opportunities that lie ahead are as challenging as they are exciting. A primary factor influencing the cost and consequently the adoption of EVs is at its core the mileage range they offer. To replace traditional carbon-based vehicles, EVs must not only match but potentially exceed the range and functionality of their fossil-fueled counterparts. This is no small feat, as it requires a delicate balance in the engineering of these advanced machines, particularly when it comes to battery technology.
The heart of an EV lies in its battery, a marvel of modern chemistry that must be robust enough to power long distances, yet light enough not to compromise the vehicle’s efficiency. Achieving the optimal energy density and efficiency in batteries is a complex challenge that the industry has met with remarkable ingenuity. However, it is this very sophistication in battery design and the materials required that contributes significantly to the higher costs of EVs. The industry has engineered solutions to meet these demanding specifications, but the financial implications cannot be ignored. Herein lies both a significant hurdle and a golden opportunity. The prospect of using smaller battery packs + longer battery life + rapid charging in 3-wheeled or 4-wheeled commercial EVs to make the upfront cost and financing terms at par with fossil fuel option, presents an attractive economic proposition. With the growing last mile delivery segment and green targets of e-commerce companies, these vehicles, which are becoming increasingly popular in countries like India — with models such as Euler, Altigreen, or Mahindra — offer a more affordable price point ranging from $5,000 to $7,000. This pricing strategy along with rapid charging capability which enables higher uptime and earnings, opens the door to more widespread adoption, making EVs accessible to a broader demographic and paving the way for a more inclusive energy transition.
Yet, this approach is not without its drawbacks. To produce cost efficient vehicles, OEMs rely on smaller battery packs, which lead to increased downtime due to the need for frequent charging to maintain a practical range, especially for commercial applications. This presents a significant inconvenience for users and is a barrier to the adoption of EVs as a primary mode of transportation. The challenge, therefore, is to find a way to enhance the uptime of these cost-effective alternatives without incurring extensive cost.
The solution that emerges is as clear as it is urgent: cost efficient rapid charging. By enabling these vehicles to recharge quickly, we can significantly reduce the downtime associated with smaller battery packs, making them not just economically attractive, but also practically viable for extended use. Rapid charging technology holds the key to unlocking the full potential of EVs, allowing them to serve as a reliable and convenient form of transportation for longer distances. It is this technological leap that could transform the landscape of EV adoption, making it a realistic option for the masses and not just a privilege for the few. As we move forward, the focus on rapid charging becomes not just a technical goal but a strategic imperative to ensure that EVs can truly become the standard in our global transportation narrative.
Characteristics of a King of the Hill
Navigating the terrain of electric-vehicle battery innovation, we have identified key characteristics that set a true ‘King of the Hill’ apart in this competitive landscape. These traits are essential for any technological disruptor aiming to fill the existing gaps and redefine the future of EVs.
Battery Management and Thermal Management are drop-in solutions to enable safe and fast charging: Instead of changing battery materials, using battery management system control or external charge/discharge interruption could help to have better kinetics and more uniform Li deposition at cell-level.
Battery-Cell Chemistry agnostic rapid Charging: A leading solution must offer swift charging capabilities that are not limited by the type of battery cell. This universality is crucial, as it ensures that the charging technology can serve a broad spectrum of vehicles and battery types, significantly reducing EV downtime.
Cost Efficient rapid charging technology: Advancements in rapid charging technology should not lead to increased battery-system costs. The innovation must enhance charging efficiency and speed without adding financial burden, thus preserving the technology’s market viability and consumer affordability.
System-Level Innovation: The breakthrough must be holistic, encompassing not just the battery pack, but also the charger and the supporting infrastructure. This integrated approach guarantees that all components are designed to work in coherent manner, optimizing grid performance and dependability.
Strategic Partnerships: Success in the EV sector is a collaborative effort. Forging strong partnerships with Original Equipment Manufacturers (OEMs) and building a solid network are indispensable for the large-scale deployment and adoption of the rapid charging technology.
These characteristics define the blueprint for a market leader in EV rapid charging battery technology, one that can effectively address the pressing needs of the industry and pave the way for a future where EVs are the norm, not the exception.
Exponent Energy
Exponent Energy has emerged as a standout in the rapid charging sector and, in our eyes, has earned the title of ‘King of the Hill’ through their pioneering 15-minutes rapid charging technology and the strategic establishment of key infrastructure. Their base in Bangalore, India, positions them at the heart of the demographic and economic realities that shape the EV market, allowing them to tailor their innovations to the needs of a region poised for transformative growth in sustainable transportation.
Exponent’s proprietary energy stack — battery pack (e^pack), charging station (e^pump), and charging connector (e^plug) together unlock a 0%-100% rapid charge, in 15 minutes for EVs and unlock a 3000 cycle life warranty using regular LFP cells. Exponent partners with OEMs to integrate its e^pack to create a rapid charging variant and sets up a network of e^pumps for users operating in logistics to seamlessly charge their Exponent-powered EVs. In the last 9 months, their technology has achieved product market fit with customers in India, with over 500 Exponent-powered EVs covering over 3Mn kilometers & completing 60,000+ rapid charging sessions.
The company’s mission is clear and ambitious: to revolutionize EV transportation through rapid charging particularly for last-mile logistics — a critical component of urban infrastructure. Exponent Energy founders, Arun Vinayak and Sanjay Byalal Jagannath, bring a wealth of experience from their time at Ather, one of the largest 2W EV OEM in India. Their leadership has been instrumental in developing Exponent Energy’s unique rapid-charging solution, which is agnostic to cell chemistry, ensuring wide-ranging compatibility and market adaptability.
Exponent Energy’s charging system is based on novel, cell-specific charging algorithm coupled with highly accurate BMS (Battery Management System) (+/-2mv error) which enables Exponent Energy to minimize battery degradation and provide 3000 cycle life warranty at 4C charge rate. This powerful combination can deliver a full charge from 0% to 100% at a 4C rate, reducing downtime to approximately 15 minutes — a stark contrast to the hour required at a 1C charge rate.
Exponent Energy’s offboard thermal management enables a cost-efficient rapid charging solution by removing the need for expensive HVAC (Heating, ventilation, and air conditioning) system from the vehicle and putting it on the charger which allows for better cost amortization. Exponent uses a combination of thermal management along with advanced charging algorithms to deliver rapid charging without compromising battery life. By removing the thermal management solution from the vehicle to the charger, Exponent energy is able to make the vehicle lighter in weight and also the rapid charging technology is cost efficient as it allows for better cost amortization as highlighted previously. Moreover, Exponent Energy has been able to maintain cost efficiency, a critical factor in the widespread adoption of EVs especially in price sensitive markets.
The infrastructure developed by Exponent Energy is as comprehensive as it is innovative. They offer a full battery-pack system design that includes the pack, charger, and connector, as well as a network of charging stations that facilitate immediate integration and deployment. This infrastructure is the backbone of their rapid-charging solution, ensuring that it can be scaled and implemented effectively. Partnerships are the lifeblood of innovation in the EV industry, and Exponent Energy has laid a strong foundation in this regard. They’ve forged significant relationships with vehicle Original Equipment Manufacturers (OEMs) to deploy their technology. With a first-mover advantage and a team equipped with the necessary expertise and experience, Exponent Energy is well-positioned to lead the charge in the EV market.
Overall, Exponent Energy stands out not only for their technological advancements, but also for their strategic approach to market integration and partnership development. Their comprehensive solutions and forward-thinking leadership signal a bright future for EVs, particularly in markets that are ripe for disruption and eager for sustainable, efficient transportation solutions.
Why We Invested
The decision for TDK Ventures to invest in Exponent Energy was driven by a clear recognition of the transformative potential within the electric-vehicle space. Our exploration revealed a significant gap: the need for EV transportation to be accessible and practical for everyone. In the journey toward the adoption of decarbonization technologies, the price sensitivity of consumers in India, Africa, South America, and other parts of the world cannot be overlooked. With standard commercial EV options often exceeding $50,000, a vast majority of the global population is excluded from participating in the EV revolution. To bridge this divide, innovation is essential — an innovation that makes EVs, such as three-wheelers and other compact models, viable for extended uptime or utilisation through faster charging solutions and capable of fulfilling crucial last-mile logistic needs.
Rapid charging technology stands at the core of this innovation, promising to drastically reduce vehicle downtime. However, it is not just about charging quickly, it is about charging intelligently and affordably, providing a system-level solution that aligns with the financial realities of consumers worldwide. Exponent Energy excels in this area, offering a creative and comprehensive approach to rapid EV-battery charging and the necessary supporting infrastructure.
We believe that Exponent Energy’s solutions have the potential to catalyze a global shift in energy consumption and transportation. Their approach to rapid charging is not just a technological advancement, it’s a key to unlocking a more sustainable and equitable future in transportation.
By partnering with Exponent Energy and their exceptional team, TDK Ventures looks to amplify the impact of their outstanding achievements and impact scale their technology quickly to market. We aim to leverage the synergies within TDK to scale Exponent Energy’s innovations, fostering an ecosystem where sustainable transportation is not a luxury, but a standard accessible to all. This investment aligns with our vision of a better tomorrow, one where energy transformation is both a practical reality and a shared global mission. It’s an investment in a future where technology serves as a bridge to a cleaner, greener, and more inclusive world.
