Bristol-based Anaphite, which is developing new technology to improve batteries for electric vehicles, has raised just under £1 million from Wealth Club clients under the Enterprise Investment Scheme (EIS). The funding was part of Anaphite’s latest £4.1 million funding institutional round, with Wealth Club taking 20% of the raise. Blue Wire Capital, OION, Zero Carbon Capital, Silicon Roundabout Ventures and Deeptech Labs, who are highly regarded as an accelerator for deep tech companies, have also invested.

Global sales of electric vehicles (EVs) have more than tripled since 2019. By 2035 there will be a ban on all new sales of petrol and diesel cars in the UK, Europe and US, which should see this trend continue. It is estimated 50% of all cars in the US will be electric by 2050 and over 30% globally. Currently, the batteries that power EVs still have significant limitations – namely, a high cost of production and long charging times that yield a limited range of use.

Anaphite is developing new technology, incorporating graphene into the core battery electrode materials that store energy. This could prolong battery life, improve charging speed, reduce manufacturing emissions and lower production costs. It is already in trials with a major EV battery manufacturer in Europe, testing its materials in their batteries. The company believes its technology can be “dropped in” to current manufacturing processes – increasing the potential of widescale adoption – and aims for the technology to be used in commercial EV production by 2028.

This successful fundraise comes in the same week that Anaphite are also announcing the appointment of Joe Stevenson as the incoming CEO, joining on 5th September. Joe brings over 20 years of experience from within the commercial and engineering sectors, having most recently been employed as a Commercial Director for Arcola Energy and Ballard Motive Solutions. Previous to this, Joe was a Corporate Strategy Director at Johnson Matthey. Joe has a Philosophy, Politics and Economics degree from the University of Oxford and has completed London Business Schools Senior Leaders Programme. His knowledge and experience will bring a sharp commercial focus to the business.

Alex Davies, CEO and Founder, Wealth Club said: “Anaphite is developing what could potentially be ground-breaking technology for use in electric vehicle batteries and may also have greater sector applications as graphene technologies become more widely adopted. This has been welcomed by our clients who have been quick to snap up the investment opportunity.

The founders have a mix of technical and entrepreneurial skills and benefit greatly from an experienced advisory board with scientific, industrial and commercial expertise. The company’s success so far and the recent announcement of a commercially focussed CEO, has attracted substantial interest and it has backing from credible investors. In our view, Anaphite presents an opportunity to invest in an exciting tech business which is helping the transition to improving sustainable technologies by enabling faster-charging, increased-range and lower-cost batteries for electric vehicles. The benefit of the EIS tax relief to help offset the additional risks associated with investing in an early-stage business is just the icing on the top for this investment.”

Alex Hewitt, COO and Co-founder of Anaphite comments: “I’m very excited and proud to have such a great group of investors joining our already wonderful backers as we move forward into the next stage of our growth. I truly believe we are in a great position to have a significant impact in the fight against climate change by accelerating the mass adoptions of EVs with our fast-charging graphene enhanced cathode technology. I think our concept, approach and product can change the battery industry for the better, especially in reducing the carbon footprint of battery production. We are fortunate to have our new CEO, Joe, joining the team next month who will guide and accelerate the commercialisation of our technology.”

Jon Pollock, CEO of Elbow Beach Capital, commented: “It’s been a pleasure to get to know Alex, Sam and the Anaphite team. The advancement of lithium-ion battery technology is an essential part of the green energy transition and Anaphite’s technology has the potential to accelerate the already rapidly growing EV market.”

The Anaphite EIS:

The company’s founders are supported by industry heavyweights such as Chairman Dick Glover (former CTO at McLaren Applied). Other existing investors include specialists Zero Carbon Capital and Bristol Private Equity Club (BPEC).

Elbow Beach Capital Limited, a private investment company led this latest funding round with a £1.5 million commitment alongside Wealth Club clients. Other investors include Deeptech Labs (backed by multi-billion semiconductor company Arm, Cambridge Innovation Capital, Martlet Capital and the University of Cambridge), Bluewire Capital and Oxford Investment Opportunity Network (OION) and Silicon Roundabout Ventures.

Anaphite:

Anaphite was founded in 2018 by Sam Burrow and Alex Hewitt, who both had a passion to develop next-generation clean technologies. Their vision for the company is to accelerate the mass adoption of battery electric vehicles, by developing and licensing technologies which enable faster-charging, increased-range and lower-cost batteries.

The company is creating patent-pending self-assembly technology to develop graphene-enhanced cathodes and novel coating methods for EV batteries, in particular Li-ion batteries. The global battery market was at $108.4 billion in 2019. Li-ion batteries constituted $36.7 billion of this, with 18% CAGR.
Anaphite’s technology enables graphene to be a direct “drop-in” to battery manufacturers’ existing production lines (not applicable for the novel coating process element), enabling easier adoption and incorporation into existing processes.
Anaphite aims to sell its technology via a licence and for it to be in a production EV by 2028. The company may lead this in partnership with a large industrial player – or it may sell to a large buyer to roll out mass deployment.