Moment Energy is embarking on a new phase in its expansion strategy with the announcement that it will be building the world's first second-life gigafactory in Taylor, Texas, dedicated to repurposing retired electric vehicle (EV) batteries.

The news comes after the Coquitlam, B.C.-based company secured $22 million in Series A funding in December, enabling it to begin work on the facility expected to become operational in 2028 and provide up to two gigawatt-hours (gW-h) of battery energy storage systems (BESS) annually.

This latest funding round was co-led by Amazon Climate Pledge Fund and Voyager Ventures to enable Moment Energy to plug an environmental and systemic gap in the EV ecosystem by giving new life to batteries that would otherwise be discarded to landfills.

The additional Series A financing comes on top of the $29.3 million awarded to Moment Energy by the U.S. Department of Energy (DoE) in October.

In total, the company has raised just over $75 million in funding that will go towards the expansion of its existing Coquitlam plant and construction of the Texas BESS production facility. 

Texas plant will be industry trailblazer

Located outside of Austin, Texas, the projected 200,000-square-foot gigafactory is expected to be a trailblazer for the construction of similar EV battery repurposing plants which will benefit from an expected avalanche of retired battery packs by the end of the decade.

"Our Texas plant will be the only certified facility of its kind, globally, establishing North America as a hub for end-of-life battery repurposing," Edward Chiang, co-founder and CEO of Moment Energy, said in an interview with Sustainable Biz Canada.

"We are committed to recycling and when we receive these batteries they typically retain 90 per cent of their original capacity, which enables us to repackage them into our BESS plants."

Moment Energy is capitalizing on the readiness of automakers to offload their EV batteries to the Canadian startup rather than paying for recycling or landfill fees.

"We're working with pretty much every automaker as their trusted partner," Chiang explained. "Honestly, we have more than enough supply than we know what to do with. We only pay if the automaker has disassembled these batteries and ensured a certain quality."

Slated to break ground in 2026, the Texas plant mirrors Moment Energy’s Coquitlam facility which safely disassembles, tests and reassembles retired EV batteries, providing a cost-effective and eco-friendly alternative to existing lithium battery recycling plants now struggling with the collapse in lithium prices.

"Theoretically, there is no limit to the scope of similar plants we could build. The aspect and advantage of our Texas facility is that it will cost us around $30 million (CA$43 million)," Chiang, a native of Vancouver who obtained a bachelor's degree in mechatronics systems engineering from Simon Fraser University, explained.

Carving out a niche by repurposing rather than recycling

As the EV industry expands, end-of-life lithium-ion batteries pose an environmental hazard. By 2030, an estimated 953 gW-h of retired EV batteries will flood markets globally. 

Enter Moment Energy, the sustainable sector innovator launched out of a Vancouver garage in 2020 by Chiang together with three fellow Simon Fraser grads and aspiring entrepreneurs - Gabriel Soares, Sumreen Rattan and Gurmesh Sidhu. 

Together, they seized the opportunity to pioneer a viable business model based on grading discarded EV batteries and reassembling them into scalable enclosures to provide a cheaper source of battery energy storage.

"Recyclers struggle with profitability, especially as lithium prices fluctuate," Chiang said. "Repurposing allows us to offer energy storage at 30 per cent lower cost than new batteries while extending battery life by 15-plus years.”

With a fully funded war chest, Moment Energy is realizing its strategic objective of redefining sustainability in the EV battery sector by carving out a niche market with almost unlimited potential for growth and scalability.

"We're a battery repurposing company, not a recycling company. Other big companies like LG are spending billions of dollars to create gigafactories. The reason why we don't need to spend as much money is because we don't shred batteries and we don't use chemicals.

"We also don't waste fresh water which is the case with chemical processes. We just take out the batteries which are contained in a very safe and uniform building block. If you would look at them, you would say, 'Hey, these look like Lego blocks.' We then test them and reassemble them for our BESS facilities."

Expanding its Vancouver operations

In addition to launching its Texas gigafactory, Moment Energy is doubling its Coquitlam headquarters to 50,000 square feet and expanding from 45 to 90 employees. The company’s dual presence in Canada and the U.S. not only insulates it from potential trade tariffs but positions it to serve international markets. 

"Our facilities allow us to manufacture and deploy locally, avoiding any potential disruptions due to new U.S. tariff policy," Chiang noted. 

"And what's been great about being based in Vancouver is that it's a beautiful place to live. That's why we've been able to attract top battery scientists from around the world who want to work with us. Everybody loves Vancouver.

"These scientists are coming from Tesla, Northvolt and NASA which enables us us to develop an A-team here in Vancouver. That's the approach we'll be taking with our U.S. gigafactory - once it's up and running we expect to be hiring some of the best battery minds in the world."