In many geographies, wind and solar power are now cheaper to produce than their fossil fuel counterparts. However, their deployment is limited by their intermittency, posing challenges to a grid that must constantly match supply and demand. If more intermittent sources are to come online, the more we need to control when and where green electrons are distributed to meet energy demand 24/7.
Today, most grid storage comes in the form of Li-ion batteries with between 2-4 hours of storage duration. However, with more renewables penetration, longer durations will be needed to shift excess production to times of demand and ensure grid reliability. Plus we need alternative chemistries that are lower cost, fire safe, domestically manufactured, and don’t rely on supply-limited lithium.
(Source)
Originally developed for automotive applications, sodium-metal-halide batteries had superb safety, lifetime, and roundtrip efficiency but ultimately lost out to lithium chemistries due to their lower energy density. While energy density was the most important metric for EVs, it is significantly less so for the grid.
In 2022, Inlyte acquired Beta Research, one of the early pioneers of a sodium-nickel chloride battery.
Rather than nickel, Inlyte will use a cathode made of iron, which is locally produced in nearly all parts of the world and 100x cheaper, and increase cell size 6x to bring down manufacturing costs.
Beta Research’s fully-functioning pilot production line, with 30,000 square feet of manufacturing and testing facilities, allows Inlyte to immediately go-to-market with pilot projects once the optimized design is complete.
Current market rates for Li-ion battery packs are reported to be around $150/kWh, though we spoke to utilities and independent power producers paying as high as $200-400/kwh due to limited supply. We also expect upwards price pressure to continue due to lithium shortages, exposure to foreign-controlled supply chains, and preferential use in EVs as opposed to grid applications.
Notably, Inlyte will be able to take advantage of a $45/kWh Inflation Reduction Act credit for battery modules domestically manufactured in the US, though it is not necessary for reaching these economics.
On a levelized cost of storage basis, Inlyte outperforms the industry even more dramatically due to its projected 20-year lifetime, which is 2-3x longer than Li-ion (for context, some of Beta Research’s batteries have even been in operation for 30 years).
Plus, Inlyte has similar roundtrip efficiency (80-90%) and competitive energy density (100 Wh/kg) compared to Li-ion, exhibits rapid response times, requires no maintenance, and is fire safe due to superior thermal stability and intrinsic passivating reaction if the cell is ruptured. And unlike Li-ion, Inlyte’s batteries can operate in extreme heat or cold, making them well suited for locations with increasingly high temperatures.
Inlyte is led by Antonio Baclig, who holds a PhD in Materials Science and Engineering from Stanford University where he researched flow batteries and started his career as an early employee at C12 Energy. He is joined by the Beta Research team, who developed and brought the foundational technology to commercial readiness and manufacturing capacity on multiple continents.
We’re excited to lead Inlyte’s Seed round with participation from First Spark Ventures, Valo Ventures, TechEnergy Ventures, and others.
Inlyte is finalizing its scaled-up salt-iron design and is planning to engage with pilot customers in the coming months, with the ultimate goal to launch a full factory in the United States thereafter.
