Swedish Marine Battery Startup Echandia Raises $34M to Expand U.S. Operations

Swedish marine battery startup Echandia has secured $34 million in fresh funding as it accelerates its expansion in North America and strengthens its position in the rapidly growing electric maritime industry.

The new investment will help the company increase manufacturing capacity, expand its presence in the United States, and support ongoing research and development of advanced battery technologies for commercial vessels.

The funding comes less than a year after Echandia opened its first North American manufacturing and sales facility in Marysville, Washington, marking a major milestone in its international growth strategy.

Investment to Fuel Expansion

Company executives said the latest capital injection will be used to scale production while meeting rising demand for cleaner marine transportation solutions.

Echandia currently employs seven people at its Washington facility and plans to expand its workforce later this year when its local battery assembly line becomes fully operational.

CEO Torbjörn Bäck said North America represents one of the company’s most important growth markets.

He noted that expanding operations in the region will allow Echandia to help vessel operators reduce carbon emissions, lower exposure to fuel price volatility, and improve overall vessel performance.

Electrifying the Maritime Industry

Echandia specializes in designing battery systems that enable ships to operate as fully electric or hybrid-electric vessels.

The company works closely with shipyards to build new vessels as well as retrofit existing fleets with cleaner propulsion systems.

Its customer base already spans several international markets, including Europe, India, and New Zealand, where its battery technology is used across ferries, naval vessels, merchant ships, and offshore service vessels.

One of the company’s key advantages is its use of lithium-titanate-oxide (LTO) battery chemistry.

According to Echandia, this technology offers improved safety and significantly faster charging compared to conventional lithium-ion batteries, making it particularly well suited for demanding marine environments.

Strong Investor Support

The funding round attracted backing from several international investors, including:

• S2G Investments (United States)
• Klima, the energy transition fund managed by Spain’s Alantra
• Industrifonden
• SEB Greentech VC
• Japanese investment firm EEI

With this latest raise, Echandia has now secured approximately $54.6 million in total funding.

The company also reported strong business momentum, revealing that revenue quadrupled during the previous year and is expected to triple again this year, supported by increasing customer demand and a growing pipeline of commercial projects.

U.S. Projects Gain Momentum

Echandia has already secured one of its most significant U.S. contracts.

The company was selected to supply battery systems for the San Francisco Bay Ferry’s Rapid Electric Emission Free (REEF) Program, which is expected to launch the country’s first zero-emission ferry service next year.

The project highlights growing demand for electric marine transportation across North America as governments and operators seek to reduce greenhouse gas emissions.

Washington Ferries Continue Green Transition

Washington State is also pursuing an ambitious plan to modernize its ferry fleet by transitioning to hybrid-electric vessels by 2040.

The strategy includes converting existing ferries while also building new hybrid-powered vessels to reduce emissions.

Currently, Washington State Ferries consumes approximately 19 million gallons of diesel fuel annually, making it the state’s largest single source of greenhouse gas emissions among government agencies.

However, the transition has encountered delays after officials determined that converting the first ferry would cost significantly more than originally estimated.

Vigor Shipyards was selected for the initial conversion work, while state officials are expected to announce the builder for the next generation of ferries by the end of the month.

As demand for sustainable maritime transportation continues to grow worldwide, Echandia’s latest funding positions the company to play an increasingly important role in helping commercial fleets transition toward cleaner, more efficient electric propulsion technologies.

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