A few years back, the battery sector was thriving. An endless wave of startups emerged, showcasing novel chemistries and securing significant funding. My main challenge was filtering through the abundance to highlight the most noteworthy developments.
That has shifted dramatically, and in 2026, the narrative isn’t filled with triumphant battery breakthroughs but rather failures and outright collapses. Firms are going under, investors are retreating, and the appeal of batteries, particularly for electric vehicles, has diminished significantly. On Monday, Steve Levine from The Information (paywalled link) reported that 24M Technologies, a battery startup established in 2010, was closing its doors and would be auctioning its assets.
The company has remained tight-lipped, but this latest development is part of a troubling trend—and it’s a significant one—at one time, 24M boasted a valuation exceeding $1 billion, and its innovations were compatible with existing technologies. So what does this mean for the battery sector?
Numerous high-profile battery startups in recent years have aimed to introduce innovative chemistries to challenge lithium-ion batteries, which currently dominate the market powering phones, laptops, electric vehicles, and grid storage systems. Consider sodium-ion batteries and solid-state technologies.
24M did not propose to replace lithium-ion but to enhance its functionality. A key innovation from the company was its unique manufacturing method, which involved applying materials onto metal sheets to create electrodes—a simpler and potentially more cost-effective process than traditional methods.
The layers in the company’s batteries were thicker, reducing inactive materials within cells and enhancing energy density. This allows for more energy to be contained in a compact form, which improves EV range—the company famously aimed for a 1,000-mile battery (approximately 1,600 kilometers).
Details surrounding the events that unfolded at 24M and the future of its technology remain scarce. The company did not respond to my inquiries sent to their official press email, and I encountered no response via phone calls. 24M cofounder and MIT professor Yet-Ming Chiang opted not to comment for the record.
For those who have been monitoring the battery industry closely, additional bad news is not overly shocking. It appears that nearly everyone is facing financial constraints these days, and as funding diminishes, there is waning interest in new concepts. “It just feels like there’s not a lot of appetite for innovation,” comments Kara Rodby, a technical principal at Volta Energy Technologies, a venture capital firm specializing in energy storage.
Natron Energy, a frontrunner among sodium-ion startups in the US, ceased operations in September of last year. Ample, a battery-swapping service for EVs, filed for bankruptcy in December 2025.
Failures were always expected from the recent surge in battery startups. Investment flowed into a variety of companies, some proposing truly outlandish ideas. However, recent months have clearly indicated that the battery market is becoming ruthless, even for the safer investments.
Since 24M’s technology was intended to integrate with existing lithium-ion chemistries, it could have been an appealing candidate for current battery companies to either license or acquire. “It’s a prime example of something that should have been more straightforward,” Rodby states.
The significant reductions in critical elements of the Inflation Reduction Act, essential legislation in the US that provided support and incentives for batteries and EVs, has certainly exacerbated the situation. The EV landscape in the US is slowing down, with manufacturers canceling EV models and cutting factory plans.
There are some positive developments. China’s battery sector is flourishing, and its battery and EV leaders are increasingly asserting their dominance. The market for stationary energy storage is also seeing some positive growth indicators, even in the US.
However, on the whole, the outlook is not promising.
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