Moment Energy raises $40M to meet ‘infinite demand for power’ with EV batteries

Moment Energy, led by CEO Edward Chiang, is poised to transform the North American energy landscape with its innovative strategy for repurposing electric vehicle batteries. The company, which operates in both Canada and the U.S., believes that the demand for power in the region is limitless. Chiang recently shared insights with TechCrunch about the company's unique focus on safety and modularity, which has attracted significant investor interest. In a recent announcement, Moment Energy revealed it has successfully closed a $40 million Series B funding round, elevating its total funding to over $100 million. This funding round was spearheaded by the Canadian venture capital firm Evok Innovations, with contributions from W23, a fund linked to a major grocery retailer, alongside existing backers like Amazon's Climate Pledge Fund and In-Q-Tel, the CIA-affiliated venture capital firm. Chiang emphasizes that the North American electric grid is struggling to keep pace with the surging demand for power, fueled by the escalating climate crisis, the proliferation of electric vehicles, and the rapid expansion of data centers. Currently, Chinese firms dominate this market, controlling approximately 72% globally, as noted by BNEF, raising national security concerns for the region. To address these challenges, Moment Energy repurposes battery packs from electric vehicles, replacing the manufacturers' battery management systems with its proprietary software. This allows the company to create large-scale grid storage solutions that accommodate various battery chemistries, ensuring customers can leverage advancements in technology while minimizing downtime from potential module failures. A key differentiator for Moment Energy is its UL certification, making it the first company to receive this safety endorsement for repurposed batteries. Chiang asserts that while many companies claim to adhere to UL standards, they often do not achieve certification due to the stringent requirements. He stated, "Most other second-life battery companies attempt to lobby for easier certification standards, but at Moment, we have successfully obtained it." Although UL certification may seem unexciting, it plays a critical role in ensuring safety and insurance feasibility for energy storage products. Chiang pointed out that some companies maintain the original battery management systems from automakers, which could lead to insurance complications if any issues arise. He cited Liberty Mutual’s venture arm's participation in Moment Energy’s funding round as a testament to the reliability of their solutions. Despite being a relatively small team of around 72 employees, Moment Energy has secured supply agreements with major automotive brands like Mercedes-Benz and Nissan, and it has also received a $20 million loan from the Department of Energy. The company is currently developing a factory in Austin, Texas, aimed at scaling its operations. Chiang believes that the company's Canadian roots contribute to its pragmatic approach to business, setting it apart from some Silicon Valley startups that focus heavily on fundraising rather than product development. "We prioritize serving our customers and building a sustainable business over chasing unrealistic funding opportunities," he remarked, highlighting the importance of creating a viable and profitable operation as part of their growth strategy.