Contour Energy Systems joined the ranks of next-generation lithium-ion battery producers Monday by announcing its first product.
The company said it will begin shipping a coin-shaped non-rechargeable cell battery for the consumer, industrial and medical markets in the fourth quarter. It claims its carbon-fluorine based battery offers improved energy density, greater efficiency in extreme temperatures and better peak performance because of its high discharge rate.
The Azusa, CA, company that has raised close to $30 million said in an interview it also is conducting “advanced” research to develop a rechargeable battery for broader markets – suggesting efforts to address the large opportunities of electric cars and grid storage.
The race to develop a more capable lithium-ion battery has been accelerating recently, with companies such as Panasonic earmarking substantial resources. The reasons are obvious. Utility-scale grid storage alone could become a $1.1 billion market for lithium batteries by 2018, according to Pike Research. Electric-car battery sales will dwarf that – rising to $8 billion by 2015.
Contour’s present strategy is to target niche applications where margins and profitability are greater, says CEO Joe Fisher. The company claims its products show an eight-fold improvement over current batteries in high-demanding applications.
While the carbon-fluoride technology Contour uses has been around for about 30 years, it has suffered from limited capacity and poor performance at low temperatures. The company offers improvements to these deficiencies that are the result of collaboration between CalTech and the French National Center for Scientific Research. Contour came out of stealth in March and changed its name from CFX Battery.
Its first coin cell will target applications in tire pressure monitoring, defibrillators, unmanned aerial vehicles, military radios, and water and gas meters. Separately, it has a contract with NASA to develop batteries for space flight.
Contour’s $30 million in funding came from the venture firms CMEA Capital and USVP and from Schlumberger. CMEA also is an investor in the battery maker A123 and in CNano Technology, a company developing nano-materials for lithium-ion batteries.
Contour says it anticipates raising a C round of funding early next year.
Posted by Mark Boslet 
