ALL ABOUT CHANNELS
We want to reach our customer, Electric Vehicle Manufacturers, by directly contacting and eventually getting bought out by the battery research department at a company like Toyota, Tesla, Chevrolet, or Nissan. Our goal for Solid Spark is not to become a battery manufacturer. Instead, we would like to operate as Solid Spark under a major EV manufacturer while using their financial investment, research resources, and consumer data in exchange for exclusivity rights on our battery invention. Solid-State batteries have not been launched and publicly used yet. Our customer, EV manufacturers, do not expect us to come out with a fully operating ASSB in the next 12 months. Instead, they expect to back us at a point where we can prove a linear path in our progress of increasing energy density, storage, safety features (cooling processors), and a strong supply chain for our lithium battery material.
Customer Segments Out-reach
​
Our primary consumer, Electric Vehicle Manufacturers, prefer being reached directly and take on battery research in-house. Currently, QuantumEscape got consumed by Volkswagen, Solid Power got consumed by Ford Motor Company, and we also hope for Solid Spark to garner investment directly from an EV manufacturer instead of going through a battery manufacturer in the process of reaching an EV manufacturer.
Most Cost-Efficient Channel
Given the current phase of our product, where the OIM is still under research, the most practical and cost-efficient channel for Solid Spark would be Licensing to an OEM (Original Equipment Manufacturer)
Channel Integration
Customers find Solid Spark via specialized expos and markets, magazines, conferences, and trade shows.
This targets the customer as cost-effectively as possible where the only cost is the cost to rent a booth for expo/market.
Channels can also be through partners, such as Solid Power, Quantum Escape, and 24M Technologies, via exposure on their websites.
As with a B2B business model, Solid Spark will be communicating with the customer directly to form partnerships.
Demand Creation
Our end-users are customers who are buying EV’s from our parent EV manufacturer, and we create demand by producing a ASSB that can make the EV’s run faster and more efficiently than current EV’s on the market. Currently, the best lithium-ion batteries pack about 250Wh/kg, while solid-state batteries already exceed 400Wh/kg. The lithium ion battery today provides 250-watt hours by kilogram. So you can get [an EV with] range around 350 to 400 kilometers (220 to 250 miles). And the lithium ion battery has a liquid electrolyte, which flammable. Solid electrolyte is not flammable so it’s safe. By using lithium metal as anode material, we can enhance the energy density by two times. So, we can go to 500-watt hours per kilogram. That would mean range increasing to as much as 800 kilometers (500 miles). And we could target cost down to $100 per kilowatt-hour for the pack - a 500-mile EV battery offered at the target price of $100 per kWh. For reference, A 100-watt bulb that burns for a year without being turned off consumes the same amount of electricity as can be generated by 700 pounds of coal. That’s as much coal as would fill three giant suitcases.
Interviewees Feedback
Before interviewing Travis, although we initially thought that the solid-state battery market was well-established and met most demands of EV and electric consumer good companies today, we learned that there is still a lot of potential for solid-state batteries to be perfected and more optimized to cater to specific needs for certain customers and more niche markets.
Before the with Jim, we believed that there were no low-cost solutions to the corrosiveness/explosiveness of the lithium in the battery other than sacrificing the voltage of the battery. Through the interview we found the option of insulation, even though too much insulation can weigh down the battery, it was an avenue we were unaware of.
Before speaking with Andrew Leitner, a 3-year synthetic chemist at Ionic Materials, we assumed that there weren’t any solutions to improve existing energy density in solid state batteries, but discovered that there are expensive, high voltage solutions that increase density, the problem is finding organic materials combine with these solutions that won’t be broken down from the heat of high voltage
Barriers to Entry
Because of the extremely costly nature of initial investments into battery research, this heavily limits who enters into the market.
Also, in order to manufacture solid-state batteries, the current cost of Li-based batteries is approximately a factor of four too high on a kWh basis for PEVs and approximately a factor of 50% too high on a kW basis for HEVs.
The main cost drivers being addressed are the high costs of raw materials and materials processing, cell and module packaging, and manufacturing.
Another barrier exists within the supply chain, where suppliers only are willing to work with long-term business and high-volume orders.
This can make the list of suppliers and distributors extremely limited to an average battery startup.
The top 3 challenges mentioned by Jim were the ability to create a polymer/battery that has a high voltage without sacrificing safety, stopping the lithium dendrite growth and create batteries that renewable and rechargeable.
Top 3 challenges mentioned by Andrew: preventing corrosion, finding the highest voltage materials without destroying the other materials in the battery, and finding those materials that can withstand higher voltage while maintaining cost efficiency
Our Value Proposition
We feel stronger than ever before to go all in into the Electric Vehicle manufacturing customer segment. Our interactions with Academics and Industry Professionals have convinced us that the EV market has goals for future EV’s that can’t be met by current Lithium-Ion technology, therefore EV manufacturers are actively looking for other solutions such as All-Solid-State batteries. The EV customer segment also holds the highest financial potential compared to our secondary segments of Medical Equipment and Smart Phones/Laptops. Our value proposition’s offers still remain the same with an added feature of emphasizing on battery storage. Initially, we were very focused on cost benefits and providing the highest speed in our battery but speaking to professionals made us realize that there is a much higher demand for better battery storage than we originally thought. In other words, battery storage refers to the recharge ability and power of a battery.