Battery cell start-up technology due diligence

Client Challenge

The client needed a long-term evaluation to support the assessment of strategy and progress of a European start-up battery manufacturer along with expert opinion on key technical risks impacting bankability of their investment. Driven by the rapid technological evolution in battery cells, emphasis was on the technology road map and feasibility of the start-up.

H&Z Approach

H&Z created a comprehensive due diligence report, focusing on the technology-related risks and opportunities of the target. To assess progress and risk mitigation over time, quarterly reports were conducted in the form of four one-month sprints during the course of one year.

The focused content for the individual reports was prioritized in alignment with the client according to project time-specific relevance and covered the financial model, product planning and performance, production, supply chain, as well as organizational structure of the start-up.

The risk assessment was derived from inputs provided by the start-up, which were compared with H&Z's own analyses and the critical assessment of H&Z's panel of industry experts (e.g. battery cost structure, product specification, time plan).

Results

We presented a comprehensive due diligence report to the client and reviewed its key messages with the client's management to enable the positive investment decision.

The deciding elements were the battery product & production requirements, competitive success factors (esp. IP, supply chain) relative to the forecast battery market development in Europe.

Our rigorous risk assessment highlighted and weighted a holistic view of risks that could impact the bankability of the client’s investment (e.g. timing delays, quality risks over lifetime). Since the client was acting as a co-development partner to the start-up, our team could support the battery start-up with ideas to mitigate risks in line with our risk assessment.