Moxion Founder Returns After Bankruptcy to ‘Finish What We Started’
▼ Summary
– Moxion Power, a portable battery startup that raised over $110 million, went bankrupt last year after laying off more than 400 employees.
– The company’s co-founder and former employees have now launched a new startup, Anode Technology Company, with $9 million in seed funding to pursue the same goal of replacing diesel generators.
– Anode is differentiating itself with integrated hardware, including a custom inverter, and a slightly smaller, more transportable battery unit than Moxion’s.
– A key lesson applied from Moxion’s failure is that Anode will use contract manufacturers instead of handling all manufacturing in-house.
– The company plans to target markets like EV charging depots, construction, and live events, using AI to optimize operations and drive down the cost of delivered energy.
The portable power sector witnessed a significant shakeup last year with the bankruptcy of Moxion Power, a startup that had secured over $110 million in funding to replace diesel generators. Despite its ambitious mission for festivals and construction sites, the company could not survive the challenging early-stage phase, leading to the layoff of more than 400 employees and the liquidation of its assets. Now, the story is taking a remarkable turn as the original founder re-emerges with a new venture determined to succeed where the previous one fell short.
Paul Huelskamp, Moxion’s co-founder, has returned to the fray with Anode Technology Company. He is joined by several former colleagues, united by the goal of finally achieving what they initially set out to do. “We started Anode with that goal to kind of finish what we started,” Huelskamp, now serving as Anode’s CEO, explained. The new company is stepping out of stealth mode with a $9 million seed funding round led by Eclipse. The firm’s partner, Jiten Behl, who previously held the position of chief growth officer at Rivian, took the lead on the investment.
Behl’s interest in mobile power solutions was shaped by his time at the electric vehicle maker. He observed a critical bottleneck not in the vehicles themselves, but in the infrastructure required to charge them, especially for large commercial fleets. Charging hundreds of vans simultaneously demands a miniature power plant, a capability most depots simply lack. This gap often forces companies to rely on diesel generators as a stopgap measure, a practice observed even at advanced operations like Waymo’s San Francisco depot. Behl noted that businesses are actively seeking grid-independent solutions that offer greater operational flexibility.
While competitors like Sparkcharge and Power Sonic also offer mobile battery charging, Huelskamp believes Anode’s integrated hardware design provides a distinct advantage. The company has engineered a proprietary inverter specifically for its target markets, which include EV charging depots, construction sites, and live events. A key strategic shift involves the physical size of the battery unit itself. Anode’s mobile battery is smaller than Moxion’s 600 kilowatt-hour model, a deliberate choice to enhance logistical efficiency.
Huelskamp detailed the strategy, emphasizing optimization for the lowest cost of delivered energy. The focus is on maximizing the amount of energy that can be transported on a single flatbed truck, thereby reducing the number of vehicles, drivers, and trips required. “A smaller footprint, less energy, might mean more energy on the back of a single flatbed truck. It’s a little counterintuitive,” he admitted, acknowledging that such operational nuances were not fully appreciated during their first attempt.
Another crucial lesson applied at Anode is a change in manufacturing strategy. Unlike Moxion, which attempted to handle production entirely in-house, Anode will partner with contract manufacturers. Huelskamp reflected that taking on manufacturing as a startup proved exceptionally difficult. For investor Jiten Behl, this accumulated experience is a valuable asset. He sees it as gaining the benefit of those hard-won lessons without his fund having to bear the initial cost.
The market opportunity appears substantial. While EV charging depots represent an emerging need, the construction and live event industries already have established, albeit inefficient, practices. These sectors frequently rent fossil fuel-powered generators, which are costly and far less efficient than large-scale power plants. Huelskamp points to a significant cost differential, noting that Anode can charge its batteries at a fraction of the price the industry is accustomed to paying.
Looking ahead, Anode plans to leverage artificial intelligence to optimize its entire operation, from charging cycles to delivery logistics. Huelskamp anticipates that as the company scales, these efficiencies combined with the ongoing decline in battery costs will allow its service to approach the cost of grid electricity. While it may not reach the absolute lowest off-peak rates, the goal is to provide a clean, flexible power source at a highly competitive price.
(Source: TechCrunch)
