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Industry

Energy Storage

Company Type

Battery

Size

$25 Million

Investment Type

Equity

For additional information, please contact:
Gary Levy | Managing Director
(516) 457-0104

Overview

Omega Power Batteries Corp. is seeking $25 million to execute and grow its US-based battery manufacturing platform.

Plan to build out a 250 MWh production capacity (with future planned expansion) Li-ion battery cell manufacturing facility using a non-flammable electrolyte to supply the underserved market segments outside of EVs looking to transition to a “Made in America” battery supplier


Signed LOI with Soteria Battery Innovation Group starting at 50 MWh per year up to 500 MWh of potential customer demand within 3 years. Soteria Consortium of companies represent products in the consumer electronics segment that want to prioritize safety and Made in the USA


Master Supply Agreement signed with Ryvid, e-motorcycle manufacturer, to make OMEGA POWER a domestic battery cell supplier for their e-motor bikes representing the light electric vehicle (LEV) market segment

Opportunity

The global lithium-ion battery market size was valued at $70 billion in 2022 and is expected to surpass $387 billion by 2032 (CAGR of 18.70%)


The North America lithium-ion battery market size is estimated at $6.53 billion in 2024, and is expected to reach $51 billion by 2029 (CAGR of 25.35%)

Domestic Supply Problem

By 2030, global demand for the batteries is expected to increase more than five times, and US demand nearly six times. However, the US battery supply chain is hampered by a heavy reliance on foreign imports and a lack of domestic support¹


The US captures less than 30% of the economic value of each battery cell on the US market, equating to approximately $3 billion value-added and 16,000 jobs. The remaining 70% comes from imported materials. China, by comparison, captures 90%¹


The discrepancy is also a vulnerability – one that threatens both national and economic security. A military significantly reliant on foreign sources of advanced batteries is endangered¹

¹https://www.nationaldefensemagazine.org/articles/2023/2/15/just-in-new-report-aims-to-strengthen-us-lithium-battery-supply-chain

Battery Fire Safety Problem

  • Thermal runaway and extreme flammability of electrolytes
  • Increased number of incidents
  • NYC surging issue (urban living)
  • Resource-intensive firefighting and toxic fumes
  • Increased recall numbers
  • Rising insurance costs and coverage concerns
  • Federal Gov’t starting to impose regulations

Solution/Strategy

Omega Power will build out their 250 MWh battery capacity (with future planned expansion) Li-ion battery cell manufacturing facility using a non-flammable electrolyte to provide battery cells to the underserved and neglected consumer electronic, drone, and e-mobility markets. These markets are desperately seeking a US based supplier to mitigate supply chain risk of strategic battery materials, which primarily come from China, and qualify for DOE and other government grant funding for their US based products


A sales distribution channel has been secured with Soteria Battery Innovation Group (www.soteriaBIG.com) having a consortium of members including companies like Lenovo and Motorola in their end user customer base. Soteria has OEM customers interested in Omega Power to supply battery cells under a signed Letter of Intent (LOI) starting at 50 MWh in demand with the potential to realize up to 500 MWh


A Master Service Agreement (MSA) has been secured with Ryvid Inc., an e-motorcycle company based in Los Angeles, CA (ryvid.com), seeking a US-based battery supplier for future production volumes. Their plans are to purchase Omega Power batteries starting from 4,000 cells in 2026 ramping up to 2M cells by 2031 representing 240 MWh and $80M in revenue potential

Projected Revenue

Management

Picture6

Samuel R. Hashim | Co-Founder & CEO


Seasoned entrepreneur and C-level executive with over 30 years’ experience in creating and growing non-profit and private business enterprises. As the CEO of Omega Power Batteries Corp. since its founding in 2016, has been instrumental in raising capital to finance battery R&D and has led a team of research scientists, engineers, and investors to achieve milestones in next generation Li-Metal battery technology while creating a clear path to commercialization and revenue with a US based Li-ion battery manufacturing team.

Picture8

Daniel P. Hashim, Ph.D. | Co-Founder & Chief Science Officer


A Forbes 30 under 30 honoree as the inventor of a 3-dimensional NanoSponge™ material (3 patents granted) exclusively licensed to Omega Power Batteries Corp. for world-wide battery and capacitor field of use and NanoSponge™ battery electrodes that safely cycles Li-Metal in a non-flammable electrolyte for a 50% increase in energy density for extended range and run times in all battery applications. Oversees a sponsored research team of Rice University engineers to integrate a patented deep eutectic solvent that leaches out end-of-life battery waste materials into lithium, cobalt, nickel, manganese, and other strategic battery materials to source back into Omega Power’s battery manufacturing process to reduce costs and create revenues by direct sales to US Giga-factories. Published research, innovative technology, charactered leadership, and knowledge of material science and Nano engineering along with experience in the battery industry spans over 12 years of recognized excellence.

Executive Team, Advisors and Contractors

Specific Risks

  • Developmental stage company. There is a limited operating history upon which an evaluation of performance and prospects can be made. Subject to all the business risks associated with a new enterprise, including, but not limited to, risks of unforeseen capital requirements, failure of market acceptance, failure to establish business relationships and competitive disadvantages as against larger and more established companies
  • Financing for all activities has been provided in the form of direct equity investments from the members in the Omega Power Series Seed, and initial investment under current Series A Offering. Future capital requirements could vary significantly and will include the manufacturing equipment needed to build out a Li-ion cell assembly line and the corresponding equipment purchases to convert assembly line to upgraded NanoSponge™ Electrodes
  • There are risks related to contracted development partners. Working closely with Manz AG, a German manufacturer, one of the leading suppliers of battery production equipment for lithium-ion battery cells. Felix Machines – experienced contractor for plant operations and hiring and management of operating staff. Raw material supplier is a Canadian company called Targray, which is a leading global supplier of battery materials for lithium-ion cell manufacturers. While strong relationships have been built with these companies and their executives and there is confidence in their ability to perform their services, Omega Power nonetheless is dependent upon them for timely and accurate implementation of the build out, production and operational plans to produce Li-ion battery cells for customers within a reasonable and acceptable time frame to get to revenue.  I.e. 8-12 months from funding
  • In addition, until able to manufacture the NanoSponge™ Electrodes with the necessary chemical vapor deposition equipment through a capital raise or from retained earnings there is continued reliance on contractor lab, CVD Equipment Corp. (NASDAQ: CVV) (Central Islip, NY), for the carbon nanotube synthesis and NanoSponge™ Electrode samples that are needed for ongoing R&D
  • Reliance on commercialization partner, Polaris Battery Labs (Portland, OR) for ongoing full battery cell assembly and testing. While confident in 5-year relationship with these contractors, we are unable to directly control the timing, conduct, and expense of the research and development effort to produce a lithium metal battery prototype that can be integrated into our li-ion battery manufacturing process
  • While generating revenue through Li-ion battery sales to customers less dependent upon cycle life, (under 500 cycles,) there will be related R&D challenges that can slow down or prevent entering into other battery verticals requiring longer cycle life and extended battery life. i.e. cell phones, 500-1000 cycles and the EV market, which would require up to 1500 cycles and require gigafactory scale up for the highest volumes of battery production but at the lowest margins. This becomes challenging to management along the R&D path, adding potential new OEMs in these other battery sectors to accelerate growth and revenue
  • The Li-ion battery recycling business is based on technology developed, patented, and owned by Rice University (Houston, TX) and access to this technology is only through an option agreement for an exclusive license as of the time of this raise. The license option agreement was made between Rice University and a separate “sister” company called Joules & Watts Recycling LLC dba LITHIEM owned and controlled by Dr. Daniel Hashim. Omega Power has invested in Joules & Watts Recycling LLC through a SAFE Note
    • It is planned to have these two companies work together and have Omega Power invest (either through retained earnings or first right of refusal to the investors of Omega Power) and co-own Joules & Watts Recycling LLC. It is uncertain whether the funding support will be there for securing the Rice IP and recycling component to the Omega Power vision
    • LITHIEM will rely on upstream suppliers of battery waste material called “black mass” and a supply agreement with these players will be vital to the success of LITHIEM. Securing long-term contracts for a black mass supply are uncertain and building relationships with multiple suppliers will be important to minimize supply risk. These relationships are currently being made but it is uncertain how the negotiations will be for the pricing of the long-term supply of this black mass which is subject to commodity pricing risk which could affect LITHIEM’s revenue potential over the years 
  • Private securities are speculative, illiquid, and carry a high degree of risk – including the loss of the entire investment.

 

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Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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