Echandia Expands U.S. Footprint with Major Funding Round
Echandia, a Swedish battery technology startup specializing in marine vessel electrification, has secured $34 million in fresh investment to boost its presence in North America. The funding aims to scale the company’s production capabilities, deepen its footprint in the U.S. market, and accelerate its research and development initiatives. The announcement follows the recent establishment of its first North American manufacturing and sales facility in Marysville, Washington, inaugurated nearly a year ago.
The Washington site currently houses a team of seven employees, with plans to begin hiring more this fall as the facility’s assembly line becomes operational. “With North America serving as a critical growth region, we believe we’re well-positioned to help operators cut emissions and hedge against fuel price volatility, while enhancing vessel performance,” said Echandia CEO Torbjörn Bäck.
Revolutionizing Marine Transport with Safer, Faster-Charging Batteries
Swedish Startup Echandia specializes in outfitting ferries, naval ships, and offshore vessels with all-electric or hybrid-electric propulsion systems, working in collaboration with global shipyards. The company’s cutting-edge lithium-titanate-oxide (LTO) battery chemistry offers a safer and more efficient alternative to traditional lithium-ion batteries, with faster charging times and a stronger safety profile.
The startup already boasts a diverse client base spanning Europe, India, and New Zealand, and recently gained traction in the U.S. when San Francisco Bay Ferry’s REEF (Rapid Electric Emission Free) Program selected Echandia to supply battery systems. This project marks the first zero-emission ferry service in the country, expected to launch next year.
Echandia’s recent funding round attracted a global group of investors, including S2G Investments (U.S.), Alantra’s Klima fund (Spain), Swedish investors Industrifonden and SEB Greentech VC, and Japanese firm EEI. With this new capital infusion, the company’s total funding now stands at $54.6 million. Echandia reported that its revenue quadrupled last year and is forecasted to triple again, driven by growing market demand and a swelling order book.
Washington State’s Ferry Electrification Ambitions Face Hurdles
Swedish Startup Echandia’s expansion in the U.S. comes at a pivotal time as Washington State pushes to electrify its ferry fleet by 2040. The state’s ferry system is the largest source of greenhouse gas emissions among its agencies, consuming about 19 million gallons of diesel annually. Plans involve both retrofitting current vessels and investing in new hybrid-electric models.
However, progress has been hampered by unexpected costs in converting the first ferry, as reported by The Seattle Times. The state contracted the job to local firm Vigor Shipyards but has yet to announce which builder will take on construction of the new hybrid ferries—a decision expected by the end of the month.
With Swedish Startup Echandia’s growing influence and its recent financial boost, the company is positioned to play a key role in the transition toward cleaner, more sustainable maritime operations in the United States.
