PowerGenix Closes $30M Round Fueled by Clean Transportation, Energy Storage Demands

SAN DIEGO, Sept. 17, 2008 - PowerGenix, manufacturer of nontoxic, high performance rechargeable Nickel-Zinc (NiZn) batteries, today announced the close of its $30 million Series D financing round. The round was led by Bessemer Venture Partners and included existing investors: Advent International, Angeleno Group, Braemar Energy Ventures, Granite Ventures, OnPoint Technologies and Technology Partners.

Amid a global restructuring of energy storage markets, propelled by increased concern over battery safety and toxicity and revived interest in automotive technologies, PowerGenix has seen huge demand for its nontoxic rechargeable NiZn batteries. The company has signed $75 million in customer supply agreements since beginning high-volume manufacturing in March of this year and is supplying NiZn cells into multiple markets including power tool, lawn and garden, consumer AA, military and light electric vehicles (LEV).

Targeting the global clean transportation and energy storage markets with a nontoxic, non-combustible and recyclable battery solution, PowerGenix’s NiZn cells pack one-third more power and energy than existing rechargeable alkaline cells. The company’s cells have also received compliance, under third-party testing, with the European Union’s Reduction of Hazardous Materials (RoHS) and Battery Directive requirements, widely recognized as the world standard for banning toxic material in new electronic devices. In the United States, the Rechargeable Battery Recycling Corporation (RBRC), which represents 90 percent of the global battery industry, recently expanded its recycling program for the first time in seven years to include PowerGenix’s NiZn — the most recyclable rechargeable chemistry on the market.

“PowerGenix’s advanced Nickel-Zinc batteries provide more performance at a lower cost than any other energy storage option, allowing products used by millions of people every day to weigh less and have longer run-time,” said Justin Label, partner at Bessemer Venture Partners. “PowerGenix has combined ground-breaking battery technology with targeted application engineering to produce products primed to capture significant market share as the energy storage industry moves toward clean solutions.”

“With performance ideally suited for everything from rechargeable AA/AAA consumer batteries to next generation hybrid and electric vehicles, the unique size, weight and power attributes of Nickel-Zinc allow PowerGenix to penetrate multiple market segments,” added Len Rand, managing director at Granite Ventures and PowerGenix board member. “Along with leading environmental and safety proof points, PowerGenix is positioned to transform the $10 billion rechargeable market.”

“PowerGenix continues to expand long-term customer supply agreements with OEMs that recognize Nickel-Zinc’s superior performance and safety. With high volume production in place and a capital efficient manufacturing model, this financing validates PowerGenix potential to build Nickel-Zinc into the next mainstream battery technology, and demonstrates our ability to quickly address demand across diverse market segments,” explained Dan Squiller, CEO of PowerGenix.