India’s Offgrid raises $15M to make lithium optional for battery storage

In a bid to challenge the dominance of lithium in battery technology, Offgrid Energy Labs, an Indian startup, has raised $15 million in Series A funding. With a focus on creating sustainable battery solutions, the company has developed an alternative battery system called ZincGel, which utilizes zinc-bromine chemistry instead of lithium-ion technology. Founded in 2018 and incubated at IIT Kanpur, Offgrid Energy Labs aims to address the limitations associated with lithium batteries, including supply chain volatility and short lifespan. ZincGel offers 80–90% of the energy efficiency of traditional lithium batteries but at a significantly lower cost, positioning it as a more viable option as global energy demands rise. India is on a mission to enhance its renewable energy storage capacity significantly, with ambitious targets set for the coming years. The nation plans to expand its non-fossil energy capacity tenfold—from 50 gigawatts to 500 gigawatts—by 2030 and aims for 236 gigawatt-hours of battery storage by 2031–32. However, the heavy reliance on China's lithium supply chain presents a challenge. Offgrid’s ZincGel technology is designed to mitigate these supply constraints by using more readily available materials. The startup intends to establish a 10-megawatt-hour demonstration facility in the UK by early 2026, with plans to commercialize its innovative battery technology shortly after. A gigafactory in India is also on the horizon, furthering their commitment to revolutionizing energy storage. Tejas Kusurkar, co-founder and CEO of Offgrid Energy Labs, highlights the importance of making their technology financially viable. The startup focuses on creating batteries that are not only more efficient but also safer and longer-lasting than conventional lithium alternatives. ZincGel batteries can last twice as long as typical lithium-ion batteries and are capable of prolonged discharges, making them suitable for various applications, including renewable energy integration and off-grid solutions. The startup has already secured numerous intellectual property rights across various countries, ensuring that their innovations are protected. As they prepare to scale their operations, Offgrid is engaging with early testers like Shell and Tata Power, and is in discussions with European firms like Enel Group for tailored battery solutions. With its first facility in the UK, chosen for its robust battery manufacturing ecosystem, Offgrid Energy Labs is set to showcase its technology to early customers next year. The strategic decision to establish operations in the UK also aligns with the startup's goal of reducing carbon footprint compared to traditional lithium battery manufacturing processes. The Series A funding round was led by Archean Chemicals, a Chennai-based company, which now holds a significant stake in Offgrid Energy Labs. With a post-money valuation of approximately $58 million, the startup is poised for growth in an increasingly competitive energy storage market.