BMW i Ventures is investing 11 million US dollars in a seed financing round for the Californian start-up Estes Energy Solutions. With the 20 million US dollars raised so far, Estes can finalise the development of its chemical-independent battery pack platform and build up domestic battery production capacities in the USA.
Estes Energy Solutions is developing chemistry-agnostic batteries in the USA, where its new seed investor, German automotive giant BMW is active with numerous automotive plants and operations. Among others, Australian mining and electric transport giant Fortescue is also investing in the startup. German automotive companies operating in the USA are faced with the double blow of restrictions on Chinese batteries and related components, as well as newly imposed 15% tariffs on European imports.
On its landing page, Californian startup Estes Energy Solutions names sodium, LFP and nickel chemistries, manufactured in the US from 150 US dollars /kWh with up to 230 Wh/kg and 400 Wh/L energy density. In announcing its investment, BMW notes that the Estes modular platform “addresses cost-sensitive applications with an LFP-powered variant, and mass-sensitive applications with a nickel-powered variant.” Both systems are said to be suitable for heavy-use applications.
The chemistry-agnostic battery startup’s modular platform consists of the smaller Parvus battery pack with 400 volts and the Magnus pack with 800 volts. Estes Energy aims to produce both of these with sodium, iron, nickel or “advanced” battery chemistry, according to the company’s website. Sodium batteries are more commonly used in stationary storage and slower electric vehicle applications, whereas LFP and nickel batteries currently have the performance required for high-performance EVs, including trucks and buses.
The chemistry-agnostic and modular approach is appealing to numerous players across sectors. With standardised size formats, manufacturers can adapt their products once to fit, and then the batteries can be changed or upgraded as the rapidly evolving chemistries evolve. The startups’ focus on a standardised size and modular approach with interchangeable battery chemistry means that OEMs can cater to broad markets with a single integration effort, BMW points out.
“We’re experiencing a broadening of demand across new electrification markets. From defence and aviation to marine, rail, and off-highway sectors, the need for the next generation of battery systems is accelerating,” said Dustin Grace, CEO of Estes. “This funding propels us towards serving these markets at the level of performance, economics, and domestic resilience necessary for sustainable growth.”
According to BMW, Estes is working to drive further improvements at the pack level, focused on novel materials, advanced manufacturing processes, and architectural optimisations. Estes has raised 20 million USD to date, which should help the startup complete the development of its chemistry-agnostic battery pack platform and establish domestic manufacturing capacity.
“What makes Estes different isn’t just the unique technology—it’s the people,” said Baris Guzel, Partner at BMW i Ventures. “This is a team that’s been in the trenches, building rugged, high-density battery systems with real-world safety and scale in mind. It’s that rare blend of deep engineering chops, operator mindset, and execution urgency.”
Estes will be using the capital raised to expand its development team and establish a pilot manufacturing plant. The fruits of the startup’s efforts should soon take visceral form, saying it will begin deploying systems to early customers in Q4 2025.
bmwgroup.com, .estes.energy
