A stark illustration of this downturn came on Monday, as reported by Steve Levine in The Information (paywalled link). The news broke that 24M Technologies, a battery company established in 2010 with significant ambitions, was ceasing operations and would be auctioning off its assets. While the company itself has remained conspicuously silent, this announcement represents a significant blow and the latest in a disturbing pattern of negative developments. At its peak, 24M Technologies was valued at over $1 billion, and its innovative approach held the potential to revolutionize existing battery technology rather than relying on a complete departure from established paradigms. This collapse begs the crucial question: where does this leave the broader US battery industry?

For years, a multitude of promising battery startups have been vying for market share by promising novel chemistries designed to challenge the dominance of lithium-ion batteries, the current undisputed champion powering everything from our smartphones and laptops to electric vehicles and vast grid storage arrays. Concepts like sodium-ion batteries and solid-state cells have captured significant attention and investment. However, 24M Technologies pursued a different, arguably more pragmatic, strategy. Instead of seeking to replace lithium-ion, the company focused on developing incremental improvements that could be seamlessly integrated with existing lithium-ion infrastructure.

A cornerstone of 24M’s innovation lay in its manufacturing process. The company pioneered a method that involved essentially "smearing" electrode materials onto metal sheets, a technique that promised to be simpler and potentially more cost-effective than the conventional electrode manufacturing processes. This approach allowed for the creation of thicker battery layers, which in turn reduced the proportion of inactive materials within the cells. This optimization directly contributed to an improved energy density, meaning more energy could be stored within a smaller volume. For electric vehicles, this translates to a significant boost in range, a critical factor for consumer adoption. Indeed, 24M famously harbored an ambitious goal of developing a 1,000-mile battery, a target that would have fundamentally altered the EV landscape.

Despite the potential of its technology, concrete details surrounding the exact reasons for 24M’s downfall and the future of its intellectual property remain scarce. Attempts to solicit information from the company’s official press email went unanswered, and phone calls were not returned. Even a key figure behind the company, cofounder and MIT professor Yet-Ming Chiang, declined to comment on the record.

For those closely monitoring the battery sector, this news, while disheartening, may not come as a complete surprise. The industry is currently grappling with a severe funding crunch. As economic conditions tighten, venture capital firms and investors are exhibiting a marked reluctance to back novel, unproven ideas. Kara Rodby, a technical principal at Volta Energy Technologies, a venture capital firm specializing in energy storage, articulates this sentiment, stating, "It just feels like there’s not a lot of appetite for innovation." This cautious approach is stifling the very experimentation that has historically driven progress in emerging technologies.

The demise of 24M Technologies is not an isolated incident. It is part of a disturbing trend that has seen other prominent battery companies falter. Natron Energy, once a leader in the US sodium-ion battery space, ceased operations in September of last year. More recently, Ample, a company focused on EV battery-swapping technology, filed for bankruptcy in December 2025. These are not fringe players; these are companies that had garnered significant attention and investment.

While it was always anticipated that some companies emerging from the recent battery boom would fail, given the speculative nature of some of the "wild ideas" being pitched, the current market climate suggests that the challenges extend beyond the riskiest ventures. The battery market has transitioned from a period of exuberance to one that is increasingly brutal, even for companies pursuing relatively well-defined and promising technological paths.

The failure of 24M Technologies is particularly poignant because its technology was designed to complement, rather than disrupt, the existing lithium-ion ecosystem. Its potential for integration meant it could have been an attractive acquisition or licensing target for established battery manufacturers. As Rodby notes, "It’s a great example of something that should have been easier." The inability of such a promising company to navigate the current market conditions underscores the systemic issues at play.

Several external factors are exacerbating these internal challenges. The significant alterations and, in some cases, gutting of key provisions within the Inflation Reduction Act (IRA), a landmark piece of US legislation designed to provide crucial funding and incentives for battery and EV development, have undoubtedly hindered progress. The ripple effects are evident in the cooling EV market within the United States. Major automakers have begun to cancel EV models, signaling a reevaluation of their electrification strategies, and some have announced significant cuts to factory plans, impacting job creation and production capacity.

Despite this bleak outlook, it is important to acknowledge the pockets of resilience and growth. China’s battery industry continues to thrive, solidifying the dominance of its battery and EV giants on the global stage. Furthermore, the market for stationary energy storage, crucial for grid stability and renewable energy integration, is still demonstrating positive signs of growth, even within the United States.

However, when viewed in its entirety, the current landscape for the US battery industry is undeniably challenging. The optimism and rapid expansion of a few years ago have been replaced by a stark reality of financial constraints, increased competition, and a more risk-averse investment climate. The path forward for American battery innovation appears to be fraught with difficulty, demanding a strategic reevaluation and a renewed focus on sustainable business models and supportive policy frameworks. This article is from The Spark, MIT Technology Review’s weekly climate newsletter. To receive it in your inbox every Wednesday, sign up here.