No fewer than three Luxembourg cabinet ministers were involved in the announcement of an investment in a startup based in San José, California, here in the grand duchy: (DP), deputy prime minister, minister of foreign affairs and foreign trade, (CSV), minister of finance, and (DP), minister of the economy. Also participating were representatives of the National Credit and Investment Institution (SNCI) and the European Investment Fund. Both bodies are shareholders in Luxembourg Future Fund 2, a €200m investment vehicle , which aims to promote sustainable development and diversification of the Luxembourg economy in strategic sectors without losing sight of returns.
It was an opportunity for the three ministers to put across a key political message: the whole government is working hand in hand to promote the merits of the Luxembourg economy abroad, to seek out innovative companies capable of diversifying the local economic fabric and facilitating the transition to a digital and sustainable economy, and to improve the attractiveness and competitiveness of the economy. “It’s a team effort,” stated Bettel.
€15m in series B capital
From an economic point of view,Lyten’s arrival in Luxembourg was at the opening of the 2023 edition of Automotive Day at Belval, in the presence of the then economy minister (LSAP), then finance minister (DP) and then prime minister Bettel. The startup chose Luxembourg as the location for its European headquarters, for R&D activities and for a possible industrial pilot plant. Today, the headquarters are in place and the company is looking for a suitable location for its R&D activities. On 18 July, Dan Cook, CEO and co-founder of Lyten, mentioned the possibility that this might be at Technoport.
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The LFF 2 investment of €15m in series B capital--equity financing used by startups to fund growth and expansion--will be used “to support the development of lithium-sulphur batteries, which offer superior energy density, increased safety and improved durability over traditional lithium-ion batteries,” the stakeholders said. “In addition, graphene-based lightweight composite materials and sensors are aimed at revolutionising various sectors such as the automotive, aerospace and energy infrastructure industries.” They do not specify how much of the company’s capital will be acquired as a result of the investment.
Partnerships first
Technically speaking, Lyten has developed a process for sequestering carbon with methane to transform it into a ‘super material’, graphene. Graphene can be used for a variety of applications, such as improving the energy and environmental performance of batteries for all types of electric vehicle, enhancing the performance of sensors or incorporating it into composite materials for the aerospace industry.
Cook said he wants to take advantage of Luxembourg’s technological ecosystem--particularly in the space and automotive industries--to forge partnerships to demonstrate the qualities of graphene and its industrial potential. A partnership is due to be signed “in the coming weeks with a big name in the tyre industry”, he said.
The next step, “if commercial opportunities arise”, could well be the construction of a plant. “Nothing is ruled out”, said Cook. He already has the support of the government should this step become a reality. “It’s good that research is developing,” said Bettel. “But if in the end it leads to a production activity, the government will analyse it carefully. We are not against production.”
Read the original French version of this report