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Comment by cyberax

2 days ago

Keep in mind, we could have had local Na-Ion battery production in the US. The company producing them needed about $5m of bridge loans, with products already sitting in warehouses awaiting the UL certification.

This company got sold for scrap.

Given that $5 million is not that much in the heavy industry game, I'd like to know why they couldn't get the bridge loans.

Like, that's not an unreasonable size of loan for a regional expansion for medium-sized businesses; there should be some sort of lender interested in doing that for them.

  • That's why, if you look at Fervo energy's makeup, and ask why do your have so many finance people, relative to the number of engineers; that's why. As a software developer, I have no idea how to get a $5 million bridge loan other than whatever ChatGPT could tell me. Meanwhile, a team of finance guys with domain expertise could have gotten them that $5 million.

  • I suspect some shenanigans from investors. The bankruptcy also was handled in an unusual manner, not through a regular liquidation.

See also lFP batteries from A123:

> In October 2012, A123 filed for Chapter 11 bankruptcy protection. It was thrown into a narrative of Obama-era green energy failures with defunct California solar company Solyndra that had received hundreds of millions of dollars in federal loan guarantees — a comparison to which Vieau objects because A123's technology was "proven," and it built plants and hired people with government support.

> Wanxiang Group Corp., a subsidiary of the largest auto parts supplier in China, acquired its assets for $256.6 million after it had sought to acquire 80% of A123 earlier that year

If it only cost 5M for something like that investors would have been in a line around the building.