Europe’s energy transition has never felt more urgent. With energy security climbing the political agenda, growing pressure to reduce dependence on Chinese supply chains, and a post-Northvolt battery industry finding its footing, the question of how to finance the next generation of European battery technology has become critical. At Altris, we have spent the past few years adapting to this new reality – building a financing model based on industrial partnerships rather than greenfield buildout. Here is what we have learned along the way.
Facing a new financing climate for deep tech
For deep-tech battery ventures, the journey from validated technology to full commercial product is the most capital-intensive stretch of the road. It sits in the gap between early-stage venture capital and growth capital – a phase that demands significant investment in volumes, process optimisation and product quality. This is the phase we are navigating at Altris today, and it is where I believe the industry needs better financing structures the most.
Overcoming the so-called “valley of death” is not easy, and the financing landscape we are navigating today looks quite different from just a few years ago. Back then, large green transition projects like Northvolt, Verkor and other major battery ventures in Europe were able to attract significant capital based on potential alone, often before the proof points were on the table. Today, the climate has shifted: investors ask much harder questions, demand clearer evidence, and that has fundamentally shaped how we approach fundraising at Altris.
Why scale through partnership?
The more challenging fundraising climate that emerged around 2022/2023 pushed us to think differently about how to scale. With investors demanding clearer proof points and more capital-efficient plans, building large-scale industrial capacity on our own balance sheet was neither realistic nor the most compelling case to take to the market. Partnerships became the answer. We identified three concrete financing benefits: increased capital efficiency, reduced risk for investors, and greater flexibility in how and when capital is deployed.
A key advantage of sodium-ion chemistry is that we can leverage existing infrastructure for both cell manufacturing and cell assembly. Our Draslovka partnership is proof of concept: by repurposing existing chemical production lines, we can produce Altris’ cathode active material at battery grade with limited capex. That is a fundamentally more attractive proposition for investors than greenfield buildout, and it is just one example. Across Europe, there are many idling chemical production lines that can be repurposed to provide cathode material production capacity, and each one represents capital efficiency we can bring to our next financing conversations.
The commercial maturity of sodium-ion
Altris’ fundraising has also been aided by sodium-ion’s growing commercial maturity, and we have worked actively to put that maturity at the centre of our investor dialogues. Just a few years ago, all attention was on lithium. Today, investors and industrial players increasingly see sodium-ion as a natural part of a broader technological evolution – not least as European leaders recognize the resilience benefits of sodium-ion supply chains.
In our conversations, we make a point of demonstrating our in-house development capacity and the fact that tier-one OEM investors and customers are already testing the end product, not just the material. These concrete proof points show that sodium-ion is further along than most people realize – and that becomes a key driver of investor interest.
Lessons for other deep-tech ventures
Lesson 1: Treat a tougher climate as a productive constraint
Raising capital in today’s more challenging climate has actually been a productive constraint, forcing us to be sharper and more deliberate, and to work more closely with strategic partners. We saw this clearly when we raised our Series B1 in 2024, at the same time as the European battery industry was going through an unstable period with Northvolt disclosing their financial constraints. With the sentiment around battery investments being anything but positive, we really had to articulate how we planned to use the equity and how it would generate value for our investors.
Lesson 2: Bring existing and incoming investors together
In that round, we decided to engage our existing investors directly with the incoming investors to finalise the agreement and terms for the next phase. Getting the existing investors and the incoming ones to sit down with our management team and outline the potential was a key success factor in being able to close at that point in time.
Lesson 3: Start earlier than you think – and stay laser-focused
What has been clear since then is that raising capital always takes longer than you plan for, and this truly is the hardest part. For a start-up, three months can mean life or death, so being proactive is essential. Also, in a time when investors are more careful, you really have to stay laser-focused on the milestones and objectives you intend to achieve with the new equity. Be direct with investors too, and surface the hygiene factors early: does this fit your thesis, is it the right stage, the right ticket size, the right ownership? Clearing those questions up front saves everyone time.
Lesson 4: Cultivate the next round while closing the current one
A final lesson is one we now apply to every round: engage the investors you want in your next fundraise at the same time as you raise your current one. Familiarise them with what you are doing, stress-test your milestones with them, and keep them updated on progress. That way, when you open the next round, they already know the case and, ideally, have bought into what you have accomplished and want to be part of the next chapter.