Caterpillar Invests in Fisker to Accelerate Development of Solid-State Batteries

Fisker eMotion

FISKER INC. Electric vehicle startup Fisker Inc. has received strategic investment from the venture capital arm of heavy machinery maker Caterpillar Inc.

Los Angeles-based Fisker didn’t provide financial terms of the deal but said Caterpillar’s investment in Fisker “illustrates a mutually recognized importance that electrification solutions will represent to multiple business segments in the future."

Peoria, Illinois-based Caterpillar (NYSE: CAT) is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Its venture funding unit, Caterpillar Venture Capital Inc., has been focused on investments in robotics, energy, advanced materials and digital technologies.

“While Caterpillar and Fisker serve fundamentally different industries, advancements in electrification technologies pose increasing importance and offer the potential to positively impact customer value for the right products," Fisker

Fisker is aiming to make electric vehicles outfitted with the longest range and shortest charging times among all EVs.

As part of that process, the company is developing solid-state batteries as the “next generation post lithium-ion era of future battery technologies, that offer bulk electrodes with high energy densities, enhanced safety, faster charge times and lower costs."

Fisker says its patent-pending Fisker Flexible Solid-State Battery costs less than $100 per kWh.

Fisker was founded by automotive designer Henrik Fisker, who was behind iconic autos such as the BMW Z8 and the Aston Martin DB9. Fisker’s first electric vehicle venture ended in bankruptcy in 2013 after the $100,000 Fisker Karma experienced battery problems that led to the recall of more than 600 Karmas. In addition, some Karmas burst into flames due to an issue with an engine component. China’s Wanxiang Group later bought Fisker’s assets and renamed the company Karma Automotive, based in Costa Mesa, California.

In late 2016, Fisker launched a new electric car company, Fisker Inc., aimed at taking on premium electric vehicle makers such as Tesla Inc.