Exploring Rapid Charging Solutions, Market Insights, and the Key to Sustainable Growth

In the realm of electric vehicles, our dedication to sustainable energy innovations is vital. Without these advancements, transitioning to electric transportation and reducing emissions would become significantly more challenging, hindering our efforts to create a cleaner and healthier environment for future generations.

While endeavours to reduce EV charging durations to just 10 minutes were underway globally, led by the industry giants, many technological breakthroughs remained within the confines of highly advanced laboratories.

Contrary to this, Exponent Energy from India innovated a groundbreaking technology which not only minimises charging duration of CVs to 15 minutes but also extends the lifespan of EV batteries, offering long-term cost-effectiveness.

Arun Vinayak, Co-Founder, Exponent Energy says, “We realized that most people will use public charging every day as that’s almost the only way to charge which means even 1 hour is too long it needs to be sub 10 minutes and most segments can’t afford more than 100 to 200 km worth of range. So India needs really small batteries and ultra-fast public charging and so that was the in some sense a big realization in the direction the larger directional need that India needs something called Power density a lot of the world is focusing on energy density, solid state the, kilm Range car for example that chasing so I think that was one aha moment where we realized directionally and it’s not for the top 1% India it’s it’s for all of India we realized directionally the technology needs to be different the technology needs to built in India”

Explore Exponent’s journey from startup inception, delving into the challenges encountered within the EV charging landscape. Gain valuable insights from snippets of an interview with Mr. Arun Vinayak, CEO and co-founder of Exponent Energy.

Could you provide insights into Exponent? What would be the elevator pitch for your company?

At Exponent Energy, we’re driving the electric vehicle (EV) revolution with our cutting-edge rapid charging technology. Our mission is clear: to make EV charging faster, more affordable, and seamless. As a full-stack energy company, we develop advanced battery technology and deploy a robust charging network, enabling vehicles to recharge in just 15 minutes. While EVs have surged in popularity, barriers like slow charging and high costs persist. We’re tackling these challenges head-on, simplifying the charging process and lowering costs to accelerate EV adoption. By focusing on the energy ecosystem, we’re not just building products; we’re paving the way for a future where electric transportation is accessible to all.

Could you share the inspiration behind starting Exponent Energy and describe the pivotal moment or realization that sparked the inception of the company?

With a decade-long tenure in the EV sector, particularly as a founding partner at Ather Energy, our team brings profound insights into India’s unique challenges, including road conditions, affordability constraints, and usage patterns. Recognizing the demand for ultra-fast, affordable charging solutions, especially in light of limited home charging options and the need for smaller battery affordability, we identified rapid charging as a crucial solution. At Exponent, we envisioned rapid charging as a driver for a triple-win scenario: users enjoy seamless charging experiences, OEMs benefit from lighter, more affordable vehicles, and charging station operators cultivate profitable businesses. This holistic approach led to the selection of the name “Exponent,” reflecting our belief in the exponential impact of rapid charging tailored to India’s needs on the EV landscape.

Do you think a 15-minute charging time is fast enough, or should we aim for even shorter durations, like 3 minutes or less?

In considering charging times, it’s crucial to account for different vehicle segments. In India, where filling up a CNG vehicle can take over 45 minutes, our 15-minute charging already surpasses that benchmark. However, the pursuit of faster, more accessible charging is ongoing. While we’ve achieved 15-minute charging commercially, we’re also exploring solutions for 5-minute charging in the lab. Future innovations may even enable 2-minute charging, particularly for applications like drones and two-wheelers with smaller batteries. For commercial vehicles, 15-minute charging represents a significant leap forward, but the drive for improvement remains inherent within us.

How did you successfully achieve product-market fit for your rapid charging technology, especially given the common challenge faced by deep tech companies in aligning their innovations with customer needs and securing paying customers?

At Exponent, we adopt a product-focused approach, emphasizing design thinking to tackle operational challenges efficiently. Initially lacking precise technological solutions for rapid charging, we invested six months in understanding consumer behavior without spending on tech. Immersing ourselves in deliveries alongside diesel drivers during the peak pandemic, we gained critical insights. Prioritizing commercial vehicles was strategic, given India’s energy landscape, where they consume 70% of energy despite constituting only 10% of vehicles. Our technology aligned naturally with their need for flexibility and uptime, launching a groundbreaking solution in a niche market with minimal competition.

Revenue from customers with lower usage is significant, but our success metrics predominantly focus on those with higher mileage, representing recurring business and future growth potential. Three-wheeler owners, spending approximately 12,000 rupees per month on fuel, are ideal candidates for our technology. Covering distances exceeding 200 kilometers daily, often across diverse routes in Bangalore, they underscore the acute need for our solution.

How do you view the relationship with developers of silicon anode lithium metal and other next-generation cell technologies? Are they primarily considered as potential customers, suppliers for the future, or do you perceive their role differently?

At Exponent, we view them as potential partners or suppliers. Our approach is agnostic towards cell materials, as we’re not solely focused on material science. While the battery industry traditionally relies on material science for performance, we believe there’s untapped potential in real-time cell management. Rather than depending solely on the anode material and manufacturing tolerance for performance, we take a proactive approach. By continuously monitoring and adjusting charging currents in real time, we maximize cell performance. If a company provides us with superior anode materials, it opens up opportunities for even greater advancements, such as achieving two-minute charging. This requires a synergy between our technology and enhanced material science, promising exponential results.

How do you address the common misconception that Battery Management Systems (BMS) are solely protective layers limited to monitoring voltage, current, and temperature, when in fact they offer a broader range of functionalities?

Indeed, it’s a critical aspect. Consider pulse meters, where you only get a pulse reading, yet you can draw numerous inferences. Similarly, voltage, current, and temperature data alone hold value, but when analyzed over time or compared against virtual models, the insights become truly remarkable.

Could you elaborate on whether you utilize a physics model to understand cell behavior and derive insights, or is there another approach you employ?

Currently, our approach involves leveraging a physics model, which we’ve developed through extensive lab and field testing. This model helps us monitor various parameters and identify potential risks, such as lithium crowding, which is crucial in rapid charging scenarios. We continuously refine this model to provide a comprehensive 3D map of voltage, current, and temperature responses, allowing us to predict cell behavior accurately. While our current model is physics-based, we’re actively incorporating more data-driven elements to enhance its predictive capabilities as we gather more data.

Could you provide an overview of how Exponent contributes value to the broader ecosystem, outlining the key components within it?

Exponent Energy plays a pivotal role in revolutionizing the ecosystem by uniting diverse stakeholders. Our rapid charging technology offers end-users flexibility, freedom, and cost savings with just a 15-minute charging time and smaller batteries. The 3,000-cycle warranty instills confidence in financiers, easing financing and mitigating asset life risks. OEMs benefit from increased demand with vehicles featuring smaller batteries at lower price points. Charge point operators witness a significant business transformation, charging 20 to 40 vehicles daily while slashing energy costs from Rs. 20 – Rs. 24 to Rs. 14 – Rs. 16 per unit for end-users. This blend of reduced charging time and decreased energy costs positions rapid charging with Exponent as an irresistible proposition for all stakeholders involved.

How does Exponent Energy address the diverse charging preferences and usage patterns of users, particularly in segments like SMEs, where individuals may have varying charging habits such as charging at different battery levels or in different environmental conditions?

Our focus is on providing products that cater to all conditions, offering greater freedom and flexibility at a lower cost. This involves managing various aspects of technology, including the Battery Management System (BMS), voltage, current, temperature profiles, and cooling systems. To address cooling challenges, we innovated by integrating the HVAC system into the charger itself. This ensures a 15-minute charge time regardless of temperature conditions, whether it’s 0°C or 50°C, eliminating the need for costly onboard HVAC systems.

Do you prioritize hiring individuals with a product-centric mindset and a strong inclination towards design thinking during the recruitment process?

Our team envisions a future where Bangalore’s energy landscape shifts from centralized petroleum stations to 40,000 decentralized charging stations, requiring innovative solutions like automated charging, streamlined payments, and efficient space utilization. Designers play a key role in envisioning ambitious solutions, pushing boundaries, and challenging engineers to innovate. Engineers, in turn, leverage their technical expertise to translate these visions into reality, shaping the future of energy

Can you outline Exponent’s vision for the next 5 to 10 years and paint a picture of where you see the company, Bangalore, and India in the future?

In the next 5 to 10 years, our vision entails India’s complete transition to electric mobility, with Exponent Energy leading as the foremost energy provider in the sector. We view energy as a tech-driven solution, emphasizing seamless transactions. Similar to the role of Shell and BP in trading commodities, we aim to excel in facilitating fast, reliable energy transactions. Through our technological advancements and strategic business initiatives, we envision Exponent driving India’s transition to an all-electric future.

Do you anticipate grid capacity challenges in accommodating the envisioned 40,000 chargers in Bangalore? Are there constraints at the grid level, such as with BESCOM, that need addressing?

Looking back from 1980 to present-day Bangalore, we’ve witnessed a significant increase in household appliance usage, demonstrating the grid’s ability to adapt and evolve despite imperfections. With the upcoming wave of electrification, energy utilization will diversify, potentially incorporating electric vehicles (EVs) into various applications. We see energy management through generation, distribution, transaction, and application layers. Progress in generation and distribution, with significant investment in renewables, is notable. Future energy demands may lean towards decentralized sources like solar, fostering grid scalability and resilience. As an entrepreneur, I remain optimistic that collaborative efforts, building upon past successes, are expected to address challenges.

What other large-scale venture problems do you see yourself addressing if you weren’t building Exponent? This could inspire our audience with potential areas of focus.

If I weren’t building Exponent, I’d likely still be immersed in my passion for designing hardware and products. I see significant untapped potential in reimagining vehicles, which have seen minimal innovation since the 1980s. While we’ve embraced electric vehicles, the fundamental design and function of cars remain largely unchanged. This presents a compelling opportunity to rethink mobility, materials, and vehicle design on a radical scale, akin to the transformative shifts seen in mobile phones and white goods industries.

What advice do you have for entrepreneurs venturing into deep tech, particularly in terms of securing funding amidst the perceived complexity and risk associated with such ventures, drawing from your successful experience with Exponent?

A key tactical insight for deep tech ventures is to avoid becoming overly fixated on the technology itself. While technology is crucial, it should serve a larger purpose tied to addressing real-world problems, customer needs, and revenue generation. Emphasizing a consumer-centric narrative around the technology is essential, with a focus on relatability and effective storytelling to convey the business potential. Investors are primarily interested in the business and future vision, trusting the team to navigate the technical complexities. Thus, mastering the art of storytelling becomes pivotal in articulating the technology’s potential impact and securing investor interest and support.

Looking back, what are the top two changes or decisions you would prioritize at Exponent if you were to do it again, considering the benefit of hindsight?

Looking back, the emphasis would be on speed, iterating rapidly, and making quicker decisions. One major adjustment would involve reevaluating the initial launch strategy, particularly in choosing the target market. Initially, we aimed to introduce our technology in the truck segment, assuming it would be a seamless fit. However, the ecosystem wasn’t ready, with no truck manufacturers or customers in sight. This led to a pivot towards three-wheelers, where the ecosystem was more receptive. It taught us the importance of aligning with the existing industry landscape and being mindful not to push ahead of the market’s readiness. This learning underscored the significance of being an enabler within the industry rather than trying to create a new ecosystem.

How would you respond to sceptics who suggest that Exponent should focus on being an OEM business instead?

From our perspective, while acknowledging the potential of entering the OEM realm, we recognize it doesn’t align with our technology or long-term vision. Our strengths lie in complex tech, operational excellence, and user experience, vital for our energy business in the EV sector. These aspects demand a unique organizational culture distinct from that of an OEM. We view both models as critical but merging them could dilute our strengths. Success hinges on finding partners who share our vision rather than forcing a shift in our business model. Pursuing OEM status might indicate a shortfall in engaging stakeholders effectively and leveraging our strengths optimally.

Do you foresee a future where energy transactions involve not only payments from the consumer charging their vehicle but also payments from those supplying energy back to the grid, such as through vehicle-to-grid technology?

From an Indian perspective, we don’t emphasize vehicle-to-grid technology. Unlike scenarios in the US where vehicles can remain connected to the grid for extended periods, in India, our focus is on minimizing the time vehicles spend connected to the grid. We aim to optimize mobility by reducing the time vehicles need to be plugged in, aiming for rapid charging durations as short as 5 minutes. Therefore, our approach centers on facilitating one-way energy flow from the grid to the vehicle, addressing the last-mile mobility challenges unique to India.

What single factor could either propel Exponent to a celebration or lead it to a downfall?

So, ultimately, the success or failure of Exponent hinges on us! – the execution by the team. While our technology, ideas, and vision are crucial, execution is paramount. We’re deeply invested in building a positive ecosystem flywheel, where more vehicles, users, charging stations, and OEMs feed into each other’s success. When this flywheel spins smoothly, the results are phenomenal, but if it falters, the consequences can be equally significant. Thus, our focus remains steadfast on executing effectively and ensuring the flywheel turns in the right direction.