BMW i Ventures is announcing it has co-led an $11 million seed funding round in Estes Energy Solutions, a California-based materials and manufacturing firm looking to forge a new path in EV battery technology. This round of funding puts more than $20 million in Estes Energy Solutions’ coffers, which BMW says will “help Estes complete development of its chemistry-agnostic battery pack platform and establish domestic manufacturing capacity.”
The seed funding round also saw participation from Fortescue Ventures and New Systems Ventures, as well as DCVC, an early investor in Estes Energy Solutions. The startup also lists Baukunst, Rally Cap Ventures, Gigascale Capital, and Clocktower Ventures as investors in the company.
What Estes Energy Solutions does
Estes Energy Solutions plans to make battery packs that are meant to be affordable and offer a scalable solution for transportation companies. It will produce two sizes of battery packs in sodium, iron, nickel, and “advanced” chemistries, ranging from 28 kWh to 276 kWh.
The company’s concept is straightforward: it enables transportation firms to select battery pack configurations that suit their budget and range requirements. It builds packs starting at $150 per kWh, and offers pack densities of 230 Wh/kg and 400 Wh/L. Based in San Francisco, Estes Energy Solutions places a strong emphasis on domestic manufacturing and sourcing as a key selling point, which is particularly intriguing given looming and imposed tariff policies.
Why BMW invested in Estes Energy Solutions
“What makes Estes different isn’t just the unique technology—it’s the people,” says Baris Guzel, Partner at BMW i Ventures. “This is a team that’s been in the trenches, building rugged, high-density battery systems with real-world safety and scale in mind. It’s that rare blend of deep engineering expertise, an operator’s mindset, and execution urgency. We couldn’t be more excited to partner with them.”
Estes sees its technology being implemented in rail, marine, aviation, and other “off-highway” sectors as well. For BMW i Ventures, this investment represents a stake in electrification, providing transportation options not currently addressed by BMW. The investment from BMW i Ventures will enable Estes Energy Solutions to complete the manufacturing of its production lines, allowing it to begin fulfilling customer orders in Q4 2025.
It’s unlikely that BMW plans to implement an Estes battery pack in any vehicle in its lineup. The company may be seeking a supply chain solution with its investment in Estes. BMW has long been committed to a more efficient supply chain, sourcing and routing as much as possible locally. If Estes Energy Solutions can create a domestic supply chain for battery packs, it could be beneficial for BMW’s interests.
Fabian Kirchbauer Photography
Final thoughts
BMW recently took its foot off the accelerator with EVs due to tariffs and the global supply chain required for producing battery packs. It’s an investment in Estes that is sound anyway, and strategic, considering the volatility with tariffs. It’s also worth noting that while the current administration can be credited (or blamed) for the current tariff kerfuffle, there’s no guarantee a future administration would lift any imposed tariffs. BMW is simply not a company that thrives in uncertainty, so this investment may have a side effect of helping it shore up more domestic supply chain partners for its future (EVs) and overall business model.