[Exclusive] Korean Startup Founded by 'Tesla Alumni'... Partners with Rivian, the 'Tesla Rival'

Domestic Startup Greenergy Partners with Rivian... Expected to Begin Demonstration in First Half
Equipped with Secondary Batteries for Automotive Components... Full-Scale Discussions on Supply Contract by Year-End
Founded by Former Tesla Electric Vehicle Engineer... Also Involved in Apple EV Project
Significant Production Capacity Expansion by First Half Next Year... 20 Billion KRW Series B Funding Planned for Second Half

Electric Vehicle Startup Rivian, 'Tesla Challenger' Listed on Nasdaq
(New York, Reuters = Yonhap News) On November 10 last year (local time), the electric pickup truck R1T from startup Rivian was displayed in front of the Nasdaq Stock Market in Times Square, New York, USA. Rivian, regarded as a challenger to Tesla, the leading company in the electric vehicle industry, was listed on Nasdaq that day. The public offering price was $78 per share (approximately 92,000 KRW), and it closed trading at $100.73 (approximately 119,000 KRW), about 30% higher than the offering price. Recognized for its electric vehicle manufacturing technology, Rivian has received about $10.5 billion (approximately 12.38 trillion KRW) in investments from Amazon, Ford, and others since 2019. Rivian's market value is estimated at $107 billion (126.15 trillion KRW). 2021.11.11
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[Asia Economy Reporter Junhyung Lee] Domestic secondary battery startup Greenergy is pushing forward with a battery technology proof of concept (PoC) with Rivian, a U.S. electric vehicle company known as the 'Tesla rival.' Greenergy is a company that developed lithium titanate oxide (LTO) batteries, overcoming the drawbacks of conventional lithium-ion batteries. The company is expected to start supplying secondary batteries to Rivian in earnest as early as the end of next year.

The company's batteries are expected to be installed in Rivian's electric pickup truck 'R1T,' which began full-scale production in March this year. Unlike the drive battery that acts as the engine of an electric vehicle, these batteries supply power to electronic components such as cameras and communication modules. CEO Bang Seong-yong of Greenergy is currently staying in the U.S. and is reportedly coordinating detailed contract terms with Rivian.

It is hard to believe that a domestic technology startup established five years ago with about 30 employees has achieved this result. However, knowing that the founder is an electric vehicle engineer who worked at Apple and Tesla makes it understandable. Founder Bang is an electric vehicle expert who handled electric vehicle battery research and development (R&D) at global companies such as Hyundai Motor Company, Apple, and Tesla. At Tesla, he designed the battery pack cooling system for the 'Model S.' He also joined Apple's electric vehicle project 'Titan' and was in charge of battery pack design.

Dr. Jo Myung-dong, a former senior engineer of battery cells at Samsung Advanced Institute of Technology (SAIT), leads Greenergy's secondary battery research institute. Chief Strategy Officer (CSO) Hwang Jae-ho and Chief Operating Officer (COO) Jung Byung-hoon are veterans who researched autonomous driving components, camera modules, and motors at Hyundai Motor Group and Samsung Electronics, respectively.

Bang Seong-yong, CEO of Greenergy.
Photo by Asia Economy DB

Proof of concept ongoing for 1.5 years... Supply contract discussions by end of next year

According to related industries, Greenergy is currently in close discussions with Rivian over a battery proof of concept contract for electronic systems. This is a plan to test the electronic system batteries developed through a government project. If this contract is signed, Greenergy will supply secondary batteries to Rivian from the first half of this year and conduct proof of concept for about one and a half years.

Greenergy is the only company in Korea with pouch-type LTO battery production capability. LTO batteries replace graphite, used as the anode material in secondary batteries, with LTO, significantly improving lifespan and safety. Greenergy's LTO battery 'Potere' can be charged and discharged 7,000 to 10,000 times. Considering that conventional lithium-ion batteries have 1,000 to 2,000 charge-discharge cycles, this extends the lifespan nearly sevenfold. The output performance is 10C (Capacity), more than three times higher than general secondary batteries (3C). The charging speed is about ten times faster. Additionally, while lithium-ion batteries experience 'thermal runaway'?a rapid temperature rise?at 180 to 200 degrees Celsius, Potere can withstand up to 400 degrees Celsius.

Lithium Titanate Oxide (LTO) battery cell developed by Greenergy. [Photo by Greenergy]

Sales in hundreds of billions expected upon official supply... Factory expansion 'accelerates'

Once battery supply for Rivian is in full swing, related sales are expected to reach hundreds of billions of Korean won. Greenergy plans to discuss an official supply contract with Rivian in the second half of next year after the proof of concept ends. As of the 15th of last month, pre-orders for Rivian's main models, the R1T and electric sport utility vehicle (SUV) 'R1S,' totaled about 71,000 units. This is a 28% increase compared to the pre-order volume (about 54,000 units) in November last year, one month earlier. Global e-commerce company Amazon pre-ordered 100,000 units of Rivian's electric van 'EDV 700,' which is under development.

Accordingly, Rivian is investing $5 billion (about 6 trillion KRW) to build its second electric vehicle factory in Georgia, USA. The Georgia plant will start operations in 2024 with an annual production capacity of 400,000 units. The existing Illinois plant's production capacity is also being increased from 150,000 to 200,000 units. Rivian raised $13.7 billion (about 16.35 trillion KRW) through a Nasdaq listing in November last year.

Nasdaq-listed electric vehicle startup Rivian's CEO Scaringe
(Los Angeles, Reuters = Yonhap News) Rivian, considered a rival to Tesla, the number one electric vehicle company in the United States, was listed on Nasdaq on November 10 last year (local time). The public offering price was $78 per share (about 92,000 won), and it closed at $100.73 (119,000 won), up 29.14%. The market capitalization was $86 billion (101.39 trillion won). The photo shows R.J. Scaringe (38), CEO of Rivian, introducing the company's sport utility vehicle (SUV) R1S at an auto show held in Los Angeles, California, on November 27, 2018. 2021.11.12 [Yonhap News archive photo]
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Greenergy is also accelerating its production capacity expansion. The company plans to increase LTO battery production capacity from the current 40,000 cells to 2 million cells by the first half of 2023. To secure 'funding,' it recently attracted Series A investment worth 10 billion KRW from KB Investment, Hana Financial Investment, and others. It also plans to raise Series B investment worth 20 billion KRW in the second half of this year. The company expects sales of about 7 billion KRW this year.

Meanwhile, the company's batteries began appearing in the market last year. Mass production started in September last year, supplying Potere to companies producing illuminated signs and quarantine robots. In October last year, Greenergy won a development project for LTO batteries for railway vehicles from Korea Railroad Corporation (KORAIL) and recently successfully completed a military vehicle starter battery project for the Defense Technology Quality Institute. It is also negotiating supply contracts with overseas companies such as a Finnish tram manufacturer and a U.S. logistics robot company.