Moment Energy secures $40M to expand EV battery energy storage solutions

Moment Energy CEO Edward Chiang believes that demand for electricity across North America is effectively limitless — and that his company is positioned to meet that need.

The startup, which operates across both Canada and the United States, takes a distinctive approach to repurposing electric vehicle batteries, Chiang explained. He emphasised that Moment Energy's method stands out for prioritising both safety and modular system design.

Investors appear to share that confidence. On Tuesday, Moment Energy announced it has secured $40 million in Series B funding, bringing its total capital raised to more than $100 million. The round was led by Evok Innovations, with additional participation from grocery retailer-backed fund W23. Existing backers, including Amazon Climate Pledge Fund and In-Q-Tel, also joined the round.

According to Chiang, North America's electrical grid is struggling to keep pace with rising demand, driven by factors such as climate change, the rapid adoption of electric vehicles, and the expansion of data centres. Currently, companies based in China dominate this space, accounting for roughly 72% of the global market, according to BNEF — a dynamic that introduces potential national security considerations.

Moment Energy is addressing this challenge by taking battery packs from electric vehicles, removing the original battery management systems installed by automakers, and replacing them with proprietary software. The company then integrates these battery modules into large-scale energy storage systems designed for grid applications.

These systems are built to accommodate a variety of battery chemistries, enabling customers to benefit from future technological improvements while minimising operational downtime if individual modules fail.

A key differentiator, Chiang said, is that Moment Energy has achieved Underwriters Laboratories certification, making it the first company to repurpose EV batteries with official approval from the safety body.

He noted that many competitors claim to test their products against UL standards but do not complete the certification process, which requires strict compliance with specific components and protocols.

"What most other second-life [battery] companies are now trying to say is, let's just lobby to make second-life UL certification easier, because it is impossible to get UL certification, as it stands," Chiang said. "But at the moment, we say that's not true. We got it."

While certification may seem like a technical detail, Chiang argued that it plays a crucial role not only in ensuring safety but also in determining whether energy storage systems can be insured.

He alleged that some companies leave the original automaker's battery management systems intact and manipulate them to simulate vehicle operation, a practice that could pose safety and liability concerns. According to Chiang, this approach may result in systems that are either uninsurable or prohibitively expensive to insure. He cited Liberty Mutual's investment arm's participation in the Series B round as validation of Moment Energy's approach.

Chiang illustrated the risks by noting that if a battery fire were to occur, investigators could identify automaker systems within modified packs, raising questions about the unauthorised use of safety-critical technology.

Despite its relatively small size — the company employs around 72 people — Moment Energy has secured supply agreements with major automakers such as Mercedes-Benz and Nissan. It has also obtained a $20 million loan from the U.S. Department of Energy and is currently building a gigawatt-scale manufacturing facility in Austin, Texas.

The company serves a growing and diverse customer base, including utilities, industrial firms, and data centre operators.

Chiang added that while demand from data centre companies has been strong, Moment Energy is focused on sustainable growth rather than overpromising future deals to attract funding.

"What we've been really thinking about as a whole is just staying focused overall in what we know, and what we're building, and serving real customers, versus trying to sign up deals that are five years or 10 years down the road just to fundraise," he said. "And unfortunately, we see that a lot of Bay Area startups are less so trying to deliver product, but they're trying to raise the next round."

He concluded that the company's Canadian roots influence its approach, emphasising practical execution and long-term business fundamentals alongside growth.