GM Ventures LLC invested $7 million into a battery startap Envia Systems as it seeks to reduce the high cost of lithium-ion batteries used in its electric vehicles.
Newark, California-based Envia has developed advanced cathode technology uses inexpensive materials that store more energy per unit of mass than current cathode materials. Since the cathode is a key driver for the overall battery cost, the more energy the cathode delivers, the lower the battery cost because fewer cells are needed.
In a separate agreement, GM has secured the right to use Envia’s advanced cathode material for future GM electrically driven vehicles.
Other participating investors in Envia are Asahi Kasei and Asahi Glass; as well as current investors Bay Partners, Redpoint and Panagea Ventures. The funding of the investor group totaled $17 million.
Envia Systems will be the fourth company, beside Bright Automotive and battery startup Sakti3, funded by General Motors Ventures, a subsidiary the automaker created to invest in auto-related start-up companies.
