Tokyo-based PowerX, a provider of power transfer technologies, has signed a definitive agreement to raise $33 Million in the first half of the Series A financing round co-led by Spiral Capital and Nippon Gas.

Other investors include Imabari Shipbuilding, NYK Line, MUFG Bank, Mitsui, BEMAC Corporation, Japan Airlines & Translink Innovation Fund (JAL Innovation Fund), Tokyo Century Corporation, Mizuho Capital, Future Creation Capital, and others.

According to the press statement, the Series A funding will finance the development of “Power Base,” PowerXʼs battery assembly facility, and energy storage solutions R&D efforts. The funding will also help grow the company’s operations and hire new talents.

The battery assembly Gigafactory is located in Japan. The Gigafactory will produce batteries for its Power ARK project, which is currently in the design and development stage, and other energy storage solutions such as grid batteries and EV fast charges, which will be equipped with SaaS (Software as a Service) solution for AI real-time management and optimized battery performance.

“With the foreseen shift to EVs and the further growth of renewable energy, the demand for energy solutions powered by storage batteries will only continue to grow. PowerX will manufacture battery products in Japan for domestic and global markets,” said Masahiro Ito, Director, President & CEO of PowerX.

“We are delighted that so many companies have joined the Series A, and the construction of PowerXʼs battery assembly facility, Power Base, will finally set to start. We look forward to working with like-minded companies to take on the challenge of decarbonization, including the joint development of the Power Transfer Vessel ʻPower ARKʼ with PowerX,” said Yukito Higaki, President of Imabari Shipbuilding.

PowerX’s Power ARK are vessels equipped with containerized energy storage systems to store and deliver clean energy from renewable power plants, such as offshore wind farms. The vessels are powered by electricity and sustainable biodiesel and are expected to unlock long-distance clean power transmission across continents. The vessels are expected to be ready for field testing by 2025.

According to Mercom’s Q1 2022 Funding and M&A Report for Storage, Grid, and Efficiency, Total corporate funding (including VC, Debt, and Public Market Financing) in Battery Energy Storage came to $12.9 billion in 26 deals compared to $4 billion in 27 deals in Q4 2021. Funding significantly increased year-over-year (YoY) compared to $4.7 billion in 18 deals in Q1 2021.