How can Dutch battery startups win big? Focus on supply chain ‘pinch points,’ says CEO

Dutch battery startups must innovate at “critical pinch points” in the supply chain to compete globally, says Kevin Brundish, CEO of Eindhoven-based battery company LionVolt.

The comments come at a tough time for Europe’s battery sector, which has been left reeling following the recent collapse of Northvolt. The Swedish startup’s gigafactories were perhaps the continent’s greatest hope for a homegrown battery success story. 

Northvolt’s failure serves as a cautionary tale of the immense challenges in scaling battery production, from securing supply chains to managing infrastructure costs and maintaining investor confidence. But building big and building fast isn’t the only way to cash in on the battery boom. 

“While other European nations have focused on establishing gigafactories, with varying degrees of success, the Netherlands should leverage its historical strengths to support companies developing next-generation subcomponents,” said Brundish.

ASML epitomises this strategy. The Netherlands-based firm is the sole producer of the advanced photolithography machines used by all the world’s biggest chipmakers. Without ASML’s machines, the entire chip supply chain would falter. 

It’s an approach that deep and climate tech startups would do well to emulate, according to Brundish. “Focusing on pinch-points enables startups to minimise infrastructure costs while targeting areas with high innovation potential,” he said.  

LionVolt spun out from TNO’s Holst Centre in Eindhoven, the Netherlands in 2020. The startup is working on a 3D lithium-metal anode that improves energy transfer in lithium-ion, sodium-ion and, in the future, solid-state batteries. 

The anodes contain a film made up of billions of solid pillars, creating a patented 3D architecture with a large surface area. Compared to conventional anodes, the ions only have to travel a short distance, which makes charging and discharging much faster.  

LionVolt’s anodes can be dropped into the manufacturing processes of existing gigafactories — reducing risk and lowering capital requirements. This may be key to survival for startups operating in a highly competitive global battery market.

Lionvolt is one of several Dutch companies innovating new ways to build better batteries, triggered by surging demand for EVs and other electronic devices.  

“In 2024, the Dutch ecosystem has shown remarkable progress, particularly in the lithium-ion battery market,” said Brundish.

LeydenJar, another startup from Eindhoven, is working on silicon anodes that could make lithium-ion batteries hold more charge. Meanwhile, CarbonX, a spinout from TU Delft, has developed an alternative to graphite in batteries. It’s made from recycled materials and could help cut dependence on China, which has a chokehold on global supplies of graphite. 

LionVolt’s first pilot production line is on track to open in early 2025, with construction well underway and key equipment ordered. The company told TNW that it is now embarking on a Series A funding round as it looks for fresh capital to fuel its expansion plans.

While Brundish is optimistic about the trajectory of the Dutch deep tech ecosystem, he stressed the need for further government support and cross-border collaboration. 

“Given the Netherlands’ relatively small size, establishing closer links with financial institutions, such as deep tech VCs, will enable the rapid focusing of government subsidies alongside VC funding,” he said. 

Public funding must also be deployed more rapidly to nurture promising ecosystems before they lose momentum or migrate elsewhere, he added.