From MIT's Technology Review:
Startups with novel chemistries tend to falter before they reach full production.
Earlier this year, Ellen Williams, the director of ARPA-E, the U.S. Department of Energy’s advanced research program for alternative energy, made headlines when she told the Guardian newspaper that "We have reached some holy grails in batteries.”
Despite very promising results from the 75-odd energy-storage research projects that ARPA-E funds, however, the grail of compact, low-cost energy storage remains elusive.
A number of startups are closer to producing devices that are economical, safe, compact, and energy-dense enough to store energy at a cost of less than $100 a kilowatt-hour. Energy storage at that price would have a galvanic effect, overcoming the problem of powering a 24/7 grid with renewable energy that’s available only when the wind blows or the sun shines, and making electric vehicles lighter and less expensive.
But those batteries are not being commercialized at anywhere near the pace needed to hasten the shift from fossil fuels to renewables. Even Tesla CEO Elon Musk, hardly one to underplay the promise of new technology, has been forced to admit that, for now, the electric-car maker is engaged in a gradual slog of enhancements to its existing lithium-ion batteries, not a big leap forward.
In fact, many researchers believe energy storage will have to take an entirely new chemistry and new physical form, beyond the lithium-ion batteries that over the last decade have shoved aside competing technologies in consumer electronics, electric vehicles, and grid-scale storage systems. In May the DOE held a symposium entitled “Beyond Lithium-Ion.” The fact that it was the ninth annual edition of the event underscored the technological challenges of making that step.
Qichao Hu, the founder of SolidEnergy Systems, has developed a lithium-metal battery (which has a metallic anode, rather than the graphite material used for the anode in traditional lithium-ion batteries) that offers dramatically improved energy density over today’s devices (see “Better Lithium Batteries to Get a Test Flight”). The decade-long process of developing the new system highlighted one of the main hurdles in battery advancement: “In terms of moving from an idea to a product,” says Hu, “it’s hard for batteries, because when you improve one aspect, you compromise other aspects.”
Added to this is the fact that energy storage research has a multiplicity problem: there are so many technologies, from foam batteries to flow batteries to exotic chemistries, that no one clear winner is attracting most of the funding and research activity....MOREOur final paragraph from March 2012's "Batteries: The Venture Capitalist's Holy Grail":
...Microsoft famously didn't need venture capital either.That was 4 1/2 years ago.
(Technology Venture Investors was the sole VC investor and got that plum only because Marquardt and Ballmer were buddies)
That's the Holy Grail, finding a company that doesn't need you but will let you in.
The battery on the other hand....that's going to be a longer slog than the press releases would lead one to believe.