Last week, I had the opportunity to attend Battery Day in The Hague, where over 400 participants gathered to talk about everything from mining and materials supply chains to battery manufacturing and recycling. It was a fascinating deep dive into the Netherlands’ growing battery ecosystem—one that’s been quietly laying the groundwork for years. Unlike some of their European counterparts, the Netherlands hasn’t been making waves in the battery headlines. But don’t let that fool you. Behind the scenes, they’ve been doing the hard work—building up scientific expertise, nurturing startups focused on materials innovation, and refining manufacturing technologies. What struck me is that this might actually be an advantage. The Dutch are watching and learning from the ups and downs of other European battery makers, positioning themselves for a strategic move when the time is right. While other markets rush forward, the Netherlands is playing the long game, laying a strong foundation for when they decide to step into the spotlight. Is the Dutch battery ecosystem ready for its breakout moment? Only time will tell, but the groundwork has certainly been laid. Stay tuned—things are about to get interesting. Follow me for more insights on cleantech scale-ups and the evolving battery industry! 🚀🔋  #BatteryIndustry #Netherlands #Cleantech #EnergyStorage #ScaleUp #Innovation #Sustainability #BatteryDay

The four of us raised our glasses, toasting innovation and disruption. We were all CEOs of corporate startups, but instead of celebrating our successes, we gathered to commiserate. We called ourselves the "Broken Hearts Club"—and for good reason. We didn’t talk about markets, tech, or competition at these meetings. 90% of the conversation was navigating internal corporate politics. How do I get this decision through? How do I stay on good terms with that executive? How do I prevent unwanted appointments from corporate HQ? These were our daily battles. When we were hired, we were sold a dream: challenging projects, groundbreaking technologies, and limitless growth opportunities. And we got those projects—just without the independence or support we were promised. Which made the challenges that much harder. Here’s my takeaway for scale-ups looking to work with corporate partners: guard your independence fiercely . The moment you let a corporation dictate your operations is the moment you lose control. You won’t be developing strategies or perfecting your tech; you’ll be spending 90% of your time managing corporate politics. Got your own heartbroken stories? Share them in the comments or drop me a message—let’s set up a call. 💔 #CorporateStartups #Innovation #Cleantech #ScaleUp #StartupLife #Entrepreneurship #CorporatePolitics

We had three to six months. After that, the full weight of corporate procedures would bear down on us, slowing our growth by a factor of ten. This wasn’t my first corporate scale-up rodeo. Our wind turbine manufacturing project, funded by a Russian state corporation, had a clear expectation: return to the fold quickly. And while we eventually did, we made sure at least our manufacturing unit stayed out of the mothership’s reach. Why? Because once you're back under full corporate control, agility is a luxury you can’t afford. Rosatom, a giant in nuclear energy, has tried its hand at non-nuclear ventures—wind energy, carbon fiber, municipal infrastructure, and even 3D printing. When I was there, they had backed 84 projects, but only four really took off: wind energy, turbine manufacturing, municipal energy infrastructure, and carbon fiber production. What did they all have in common? Most were born outside of Rosatom’s direct oversight.  This echoes what Clayton Christensen pointed out: disruptive innovation can’t thrive under corporate command and control. Startups need the freedom to experiment without constantly looking over their shoulders. Corporations that want to back innovation need to fund it—and then step out of the way.  So what about lithium-ion cell manufacturing, another Rosatom venture? Two 4GWh factories are in the works, but they didn’t get the same independence. Success here was a result of sheer effort. Yes, you can grow disruptive tech from within a corporation, but the odds aren’t in your favor. You need perfect timing, access to funds, a corporation willing to take risks, and—perhaps most importantly—a relentless project manager ready to go all-in despite the hurdles. Follow me for more insights into cleantech scale-ups and overcoming the innovator's dilemma. 💡 #Innovation #CorporateStrategy #Cleantech #ScaleUp #DisruptiveTech #Entrepreneurship

It was a typical Monday meeting. The project report on advanced nuclear fuel came in—everything was running smoothly, the budget was solid, and the returns looked promising. Then we moved on to non-nuclear ventures, and chaos erupted. The 3D printing, advanced chemistry, and battery cell projects were all behind schedule, with low sales and razor-thin margins. Senior management from the nuclear fuel company, that owned us, began to question why we were even bothering with these side hustles. It’s a fair question. When your core business rakes in billions and boasts margins over 50%, why bet on high-risk, low-margin ventures? It’s not until a startup comes back to buy your factory—like NIO potentially snapping up Audi’s plant in Belgium—that you realize the missed opportunity. Big corporations are great at incremental innovation—making what they already do, just a bit better. Think of Apple’s product evolution or automotive giants tweaking their models year after year. Incremental innovation is safe, predictable, and fits perfectly into corporate decision-making processes. They know the costs, the risks, and the rewards. It’s a no-brainer. But when it comes to disruptive technologies, everything changes. The market, customer needs, and cost structures are unknown, and that terrifies established players. Is there a solution to this? Yes, but corporate execs aren’t always ready to embrace it. Follow me to catch the next post where I dive into the way forward. 👇 #Innovation #CorporateStrategy #ScaleUp #Disruption #technoeconomicanalysis

“How much is the hopium for the people?” Paraphrasing Ostap Bender from the “Golden Calph”, a satirical novel by Ilf and Petrov, about a trickster in post-revolutionary Russia, I wonder at the parallels between this charismatic fictional crook and the modern peddlers of hopium.  Hydrogen seems to be the latest addiction in the investment world. Just look at the data: hydrogen startups have pulled in over $1.4B in equity funding this year alone, with around half of that—$750M—coming straight from U.S. taxpayers, according to Crunchbase. But when it comes to investors I work with, who have a time horizon of 5-10 years, I advise caution. While hydrogen may be booming, not all bets are worth making. I recommend focusing on green fertilizers and, with caution, new electrolyzer development. Beyond that? It’s better to steer clear. Curious about hydrogen investments or other cleantech scaleup strategies? Follow me and drop your questions in the comments!  Source article: https://news.crunchbase.com/clean-tech-and-energy/hydrogen-startup-funding-boom-zeroavia-electrolyzers/?utm_source=cb_daily&utm_medium=email&utm_campaign=20240919&utm_content=intro&utm_term=content&utm_source=cb_daily&utm_medium=email&utm_campaign=20230703 #Hydrogen #Cleantech #GreenFertilizers #Electrolyzers #StartupFunding #InvestSmart #VC #Scaleup

The Innovator's Dilemma is playing out in real-time, and Nio's potential purchase of Audi’s factory in Belgium is a prime example. We’ve all heard about how legacy companies struggle to innovate and adapt to new tech. Well, now we’re seeing it in the most concrete way possible—a Chinese EV startup might be buying out a German automotive giant’s manufacturing facility. Sure, they’re just in talks right now, and the deal might fall through. But let’s pause for a second. Just a few years ago, could anyone have imagined this scenario? A startup, born in the EV revolution, potentially taking over a factory from a traditional, century-old carmaker like Audi? The fact that these discussions are happening at all is a testament to how fast the automotive landscape is shifting. It’s a visual reminder: the disruptors aren’t just taking market share—they’re taking the factories too. 🚗⚡ Thanks to Claudio Afonso for the original news article! https://eletric-vehicles.com/nio/nio-in-talks-to-buy-audis-factory-in-belgium/ Follow me for more insights on cleantech and scaleups! 👇  #EV #Automotive #Innovation #ScaleUp #Nio #Audi #ElectricCars #Disruption #InnovatorsDilemma #Cleantech

So, you’re building your FOAK (First-Of-A-Kind) plant, and the calls are rolling in from investors, all asking the same question: “Who will buy your product?” And they want specifics. A handshake agreement won’t cut it—what they really want to see is a signed contract that covers a significant chunk of your output for the next few years. Welcome to the world of off-takes. What is an Off-Take? An off-take is a long-term agreement where a buyer commits to purchasing your product for several years. Why are they so crucial? When you're dropping hundreds of millions on a FOAK plant, both you and your investors need to be confident that there will be a market for your product once the plant starts churning out units. This is especially important in emerging sectors, where markets are far from established. Think of it this way: an oil well doesn't need an off-take because the market is a well-oiled machine (pun intended). But your brand-new cleantech? That's a different story. Types of Off-Takes Off-takes aren’t new or specific to cleantech; they’ve been around in the energy industry for decades under the name “Power Purchase Agreements (PPAs)”. These are typically 10-15-year contracts that guarantee the sale of energy at a pre-agreed price, allowing CAPEX-heavy projects like nuclear or wind farms to secure financing. Similarly, public-private partnerships (PPPs) for municipal infrastructure work on the same principle—guaranteeing demand and price to justify heavy upfront investments. For cleantech startups, though, we’re more interested in off-takes that resemble the B2B deals seen in battery gigafactories, where automakers commit to purchasing a set amount of battery cells over a period of time. And yes, it’s also possible to negotiate off-takes for your own supply chain, securing key components under favorable terms. What to Watch Out for in the FOAK off-take Having negotiated a range of off-takes—from government PPAs to battery deals with automakers—I share some key issues you need to be aware of.   1️⃣ The Price This is the big one. Your off-taker will likely push for the price to drop over time, and they’re not wrong to do so. After all, they’re taking a risk by committing to your product when you haven’t yet delivered anything at scale. But being a FOAK project, you have some leverage here. Push for higher prices early on to cover your costs, pay off debts, and create enough working capital to survive the tricky first years.  💡 Pro Tip: In one of my battery off-take agreements, we locked in significantly higher prices for the first few years, knowing we’d scale and bring costs down later. On the flip side, as an off-taker for wind turbine blades, I negotiated an 80% discount for the last units, knowing our supplier would have paid off all their fixed and marginal costs by then.  2️⃣ The Volume Overpromise on output, and you’re dead in the water. FOAK projects are notorious for production delays and quality issues. Set realistic output expectations and negotiate scale-back clauses that allow for flexibility in the first few years. Your client doesn’t want to be stuck with empty promises, and you don’t want to lose credibility by missing deadlines. Remember Northvolt’s struggles with BMW—and learn from them.  3️⃣ Supplier Certification This one flies under the radar but can be a dealbreaker. Every buyer has a supplier certification process, and they don’t care that you’re a FOAK or how innovative your product is. These processes are often rigid and executed by people who care more about their KPIs than your grand vision. Make sure you fully understand what’s required, who’s responsible, and how long it will take. And be aware that your buyer could use this certification process as an exit strategy if they lose faith in your product along the way.  4️⃣ Quality Parameters You will face quality issues, guaranteed. Instead of risking financial penalties, push for agreements that allow you to replace defective units for free in the early years. Alternatively, you could negotiate to treat the first few shipments as experimental, used for testing rather than commercial sale. These strategies can help protect your relationship with the buyer while you iron out production kinks.  Why It Matters Off-takes are long-term commitments, so take your time to negotiate terms that work for you. Focus on key areas—price, volume, certification, and quality—and don’t rush into an agreement just to secure funding. A poorly negotiated off-take could haunt you for years. Want to dive deeper into the nuts and bolts of off-take negotiations? Stay tuned for next week’s long read, where I’ll break down the mechanics of letters of intent (LOI), memorandums of understanding (MOU), term sheets (TS), and full-blown contracts. 🚀 #Cleantech #ScaleUp #Offtake #FOAK #VentureCapital #EnergyTransition #Manufacturing #Innovation

Sure, nuclear energy is often viewed as a long game for the big boys—decades-long projects, deep pockets, and government involvement (see my post about it here ). But if you're not keen on waiting until 2030 or beyond for that so-called nuclear renaissance, here's what you can do right now.  In my recent research for an investor, I found three nuclear niches where startups can make money this decade—and not by betting on far-off futuristic projects: 1️⃣ Long-Term Operation (LTO): Fancy term for extending the life of existing nuclear plants. This significantly reduces nuclear energy costs and offers plenty of opportunities for startups in advanced materials, robotics, and industrial AI. Want to improve the efficiency of an existing plant? This is where you come in. 2️⃣ Decommissioning: We're not just talking about shutting down nuclear power plants—this includes everything along the nuclear supply chain, like decommissioning nuclear fuel production facilities. There’s a huge market for innovations in nuclear fuel recycling, safe storage, material science, and AI here. 3️⃣ Nuclear-Powered Ships: The tech is ready; the challenge is regulation. Startups like Core Power and TerraPower are betting that regulatory barriers will ease soon. Nuclear-powered vessels could be a game-changer, and this market is heating up. These niches are offering cash flow now, while most nuclear startups don’t expect cash until 2035. 🤑 In the coming weeks, I’ll be diving deeper into each of these markets—so stay tuned! 🚀 You can subscribe to my mailing list so you don't miss out when I post next.  #Cleantech #NuclearEnergy #Decommissioning #Startups #Innovation #ScaleUp #EnergyTransition #AdvancedMaterials #AI

When it comes to cleantech scaleups, there are very few valuable resources available. Extantia  is one of the rare ones, providing a treasure trove of insights into scaling, FOAKs, and NOAKs. Yair Reem ’s latest post introduces the Offtake Pyramid, inspired by Maslow’s hierarchy of needs. But does it work in practice? Source: Extantia From my experience, the reality was a bit different. I had a TRL 9 product—a lithium-ion cell—but I ended up with a conditional offtake. Why? The auto manufacturer was already sourcing cells from CATL, and they wanted an opt-out clause in case our product didn’t meet expectations. At the same time, I needed that offtake to justify building a 4 GWh battery cell plant.  The kicker? Even the client wasn’t sure they’d manufacture the number of EVs they had announced (EU car manufacturers, anyone?)! So, both sides had conditional terms—if our cells delivered as promised, they would commit to a certain volume. And our price was tied to that volume. 🛠 Key takeaway? The pyramid is a great tool for startups at TRL 4-5, where the first steps toward securing offtakes are critical. It shows what you can expect when you progress along the TRL ladder. But what happens when you’re at TRL 8 or 9? Should you go straight for a firm order?  As much as you might wish it, it is not always on the cards.  If that’s your case, feel free to reach out.  You are already on top of the pyramid and there is a lot of work to do. #Cleantech #ScaleUp #Innovation #FOAK #NOAK #BatteryTech #LithiumIon #Manufacturing #StartupJourney #OfftakeAgreements

Northvolt grew fast—maybe too fast. After expanding with new R&D labs and factories, they’ve hit some turbulence. Problems in cell manufacturing and BMW pulling the plug on a major offtake agreement have forced the company to shed excessive assets and refocus on what really matters: their core cell manufacturing business. 🔋 Why does this matter? When scaling, it’s tempting to chase every opportunity—more factories, new R&D labs, bigger deals. But Northvolt’s recent pivot is a powerful reminder: focus is everything.  Scaling doesn’t just mean getting bigger; it means growing sustainably. And when things get tough, the companies that succeed are the ones that stay true to their core. Northvolt’s decision to slim down and concentrate on cell manufacturing is the right one. Whether it’s timely or too late - we are yet to see.  📊 Lesson for scaleups: Don’t spread yourself too thin. It’s better to excel in one area than to stretch your resources across too many. Kudos to Northvolt for recognizing when to adjust the course and showing us all the importance of strategic focus during a scaleup. 🧠 💡 Follow me for more insights into scaling cleantech and building sustainable growth. If you’re navigating your own scaleup challenges, let’s talk! 💬  #Cleantech #ScaleUp #Northvolt #BatteryTech #SustainableGrowth #Focus #StrategicDecisions #Entrepreneurship #BMW #Manufacturing

Corporations can spend on innovation—but rolling out a new product? That’s where things get ugly. Innovation often looks like a shiny, manageable expense on paper. Corporations love to invest in R&D, hire consultants, and develop prototypes. Why not? It’s exciting, gets media attention, and gives execs something to talk about at conferences. But when it comes to actually launching a product into the market? The financials can get ugly, fast. 🔍 Here’s the thing: The cost of rolling out a new product is far more than just a bigger budget line item. It’s about overcoming entrenched supply chains, navigating legacy costs, and breaking into markets where competition is fierce and margins are tight. Worse still, this is where corporate decision-makers face the Innovator’s Dilemma head-on. They have to balance their profitable, existing products (think ICE vehicles) with untested, riskier options (think EVs), and all the while, their profits shrink in the new, low-margin business model. 🚗 Example time: As I mentioned in [*The End of an ICE Age*]( https://www.askerov.pro/post/the-end-of-an-ice-age ), automotive OEMs are stuck with low-margin EVs. Sure, they invested billions in R&D, but when it’s time to scale up production, they face a brutal rkeality: their well-oiled profit machines—the ICE vehicles—are slowly fading, and the margins on EVs are razor-thin. It’s no wonder some are backpedaling on EV rollouts. ⚖️ Why does this matter? Because corporations are often unwilling to fully commit to new product rollouts, they make erratic decisions—like delaying investments or hedging with outdated tech (hydrogen, anyone?). This is why the future doesn’t belong to incumbents. They’re too invested in the past. 🚀 So if you’re watching corporate giants talk about innovation but slow-walk new product rollouts, just know: the real costs of innovation are higher than you think, and for many of them, the math just doesn’t add up. Follow me for more insights into innovation and cleantech scaleups. And drop me a line if you’re ready to disrupt with your own new product! 💬 #Innovation #Cleantech #ScaleUp #ProductDevelopment #EV #CorporateStrategy #Startups #Entrepreneurship #R&D

🔋 The Problems Are Clear. The Solutions Are Mistimed. Except One. Yesterday, I joined the Batteries European Partnership (BEPA) webinar, where we discussed the real challenges facing EU battery cell manufacturing. Here are the key issues: • The gap between lab-to-market timelines is underestimated • CAPEX requirements in the EU are far higher than in other regions • Battery manufacturing operates on razor-thin profit margins, making double-digit GWh scale critical • Europe lacks a local, harmonized battery manufacturing equipment industry—no turnkey solutions exist I agree with this diagnosis, but the proposed "strategic actions" missed the mark. Here’s what was on the table: 1. Environmentally sustainable processing techniques for large-scale Gen 3 and Gen 4 Li-ion batteries 2. Flexible pilot lines for current and next-gen technologies 3. Advanced digital twins in Li-ion battery production lines 4. Digital twins for accelerated setup of manufacturing processes for emerging chemistries Don’t get me wrong—these are good ideas. But it’s like telling a patient with liver failure to eat healthier. Sure, great advice, but it doesn’t address the immediate problem.  Point 1? More sustainability just adds costs—the last thing the industry needs right now. Points 3 and 4? Sure, they could drive costs down... eventually. But time isn’t on our side.  💡 Now, Point 2? That’s the one we need to talk about.   Flexible pilot lines already exist, and they can make all the difference. Why? Two reasons: 1️⃣ Time: Take electrode manufacturing as an example. I spoke to an EU founder who said dropping the electrode part of his gigafactory pitch would cut costs and drastically reduce the timeline to get permits. 2️⃣ And Time Again: The B to D series testing process for new chemistries is painfully long (like, years). But if you work with specialized manufacturing-as-a-service (MaaS) companies, you can fast-track your B- and D-sample batches, cutting costs and time.  Want to know how MaaS can speed up your innovative cell production or scale your manufacturing? Drop me a line and let’s chat! 👇 #BatteryTech #Manufacturing #CleanEnergy #Gigafactory #ScaleUp #Innovation #EnergyTransition #EU