Startups Undeterred Despite Weak Economy

Planar Energy Devices:

Compared to other batteries, lithium-ions pack a punch. They deliver about twice the energy density (or energy for their size and weight) of nickel-cadmium batteries, for example.

But packing so much energy in a smaller space has brought some challenges, namely what’s called "thermal runaway," or batteries overheating and, in some cases, catching fire. 

Planar Energy Devices is developing thin-film lithium-ion batteries that it claims can provide higher energy density at a lower cost than competing batteries - without the threat of thermal runaway. 

Lithium-ion "has the highest potential capacity of any of the materials in use today, but the design has been going in the wrong direction," CEO Scott Faris said in a presentation Tuesday.

Planar hopes to change that direction. First of all, it is developing "solid state" batteries, meaning they include no moving parts and are made up of semiconductor materials. That’s compared to current battery chemistries that "really have become living devices" that change in an unpredictable manner, Faris said.

The Orlando, Fla.-based company also has developed a separator that encapsulates electrolytes – the combustible part of the battery – when they reach high temperatures that could damage the battery, according to its Website.

Finally, Planar plans to make the batteries cheaper to manufacture by using a "roll-to-roll" process similar to what semiconductor and thin-film solar companies are developing, Faris said.

He claims Planar can deposit semiconductor materials very quickly by literally spray-painting them on, and said the capital expenses of building a manufacturing plant also would be far less than that of a typical battery factory – partly because the company plans to retrofit old semiconductor lines.

"This is a highly automated, cost-effective manufacturing system," he said. "For everyone else who looks at a battery, manufacturing is usually the last thing to be considered. ... Our perspective is that this is a printing process."

Of course, thin-film solar companies have found it more challenging than expected to make thin films cost-effectively at high volumes. Cadmium-telluride company First Solar is one of only a handful of companies that have successfully produced significant amounts of the films so far, although many other companies expect to reach the market soon.

Faris said he’s confident Planar will be able to avoid those manufacturing problems because it is leveraging knowledge, not only from solar, but also from electrochromics - materials that change color when energy or an electric charge is applied, such as windows or mirrors that automatically tint in different lighting conditions - and from flat-panel displays. 

"My view is it’s always attractive to a second-generation player in any market," he said. "There’s a lot of knowledge [in those other applications]. We can learn from that."

The company is now seeking $12 million in its second round of funding, which it expects to close in the first quarter of next year, Faris said. Planar later plans to raise $20 million in its third – and last expected – round of funding in the fourth quarter of 2010.

Planar, a National Renewable Energy Laboratory spinoff, launched in July of last year and raised $4 million in its first round of funding from Battelle Ventures last October (see Can Thinner Batteries be Better?).

The company plans to initially target military and low-power wireless applications, such as smart cards, and to bring it its first revenues in 2009, Faris said. 

It plans to reach high-volume sales in 2012, when it also plans to begin licensing its technology, he said. Planar also plans to expand into transportation and networking devices.

Planar has taken grid-scale batteries off its plate, at least for now, he said. "We have enough on our plate right now," he said after the presentation.

Last year, an investor told Greentech Media that Planar expected energy storage for renewable power, like wind and solar, tobe a key market.

Still, the battery could eventually extend into any application, from a technological point of view, Faris said. "It’s a matter of resource allocation and, most importantly, where the accepting markets are going to be."