Volfpack Energy Newsletter September 2025

Hi Lovely people,

We are delighted to report that Q3 has been a period of stabilization through continuous iterative improvement. Last quarter's newsletter was a bit dark, as we were navigating the ‘valley of death’ and struggling to nail down consistency in quality/performance of the cells (capacitance, power density, and ESR) and the speed of manufacturing. We've since made significant strides in these areas, improving our process consistently. But, as with everything, the better you get, the more ways you find that you need to improve.

Our continuous focus has been on optimisation. In manufacturing, one input change affects everything, and we've had the opportunity to learn, experiment, and find the optimum as we go. We secured expert consulting (online) from specialists across the world, which helped us immensely.

The Agri IoT product is our crucial Field Test Vehicle (FTV), designed to quickly get our supercapacitors into the customer's hands for real-world validation. While this product was initially slated for launch this quarter, we have made the deliberate decision to extend the design and testing phase. This strategic slowdown is aimed at aggressively driving down the overall cost of the device, targeting a further 20% unit cost reduction through design and sourcing.

August was a cracking month for improving and building the team. We brought on a new process engineer and a material scientist, who have already delivered significant value, boosting consistency. We're thrilled about what this adds to our setup.

We've also made critical modifications to our machines to improve the process. This is a highly undervalued skillset. Having a team with a strong engineering mindset is truly a gift, enabling us to continuously improve the process and maintain our speed.

We participated in Venture Engine and Disrupt Asia 2025, both of which were really helpful. We got a lot of interesting feedback, and a number of people were surprised that a startup in Sri Lanka would attempt to get into energy storage device manufacturing. The feedback from some major players at Venture Engine was particularly tough to digest, but a true reality check. 

Apologies if we seemed to be in a state of denial initially (seven steps to recovery!), but we've now been able to fully absorb that information.

The Hard Reality

In a nutshell, the feedback is that battery/supercapacitor production is really hard. Many well-funded, highly qualified teams across the world have tried this and failed. So, the core questions are: Why supercapacitors? Why Sri Lanka? Why Volfpack? Initially, we were like, "Whaaaaa..." but we've thought long and hard about it.

Why Supercapacitors?

Our belief is that no single chemistry will win the entire energy storage market, from established Lithium-ion solutions to emerging Sodium-ion, Redox Flow, and Solid-State batteries. The future is electric, and the demand for energy is soaring. Each technology will have its own path.

1. High-Power, Short-Duration Focus: Supercaps are best suited for high-power, short-duration applications, such as frequency response in grids, regenerative braking in EVs, peak buffering in renewables, and short-burst backup power (seconds to minutes).

2. Massive, Addressable Growth: These markets are continuously growing; the global supercap market is now projected to hit an estimated USD 25.28 billion by 2030 with a significant 23.4% CAGR.

3. High-Value Niche Penetration: We are focused on high-margin, high-power niche markets (grid stabilization, heavy transport, industrial IoT) where our power density advantage is critical, allowing us to capture disproportionate value.

Why Sri Lanka?

Well, for one, because Volfpack is here! More importantly, though, Sri Lanka has distinct advantages for a precision manufacturing operation.

1. A Pool of Highly Skilled Talent: Great labor is cheaper, and I'm not talking about unskilled labor. We have a highly skilled pool of engineers and chemists with the intellectual dexterity required for complex processes.

2. A Culture of Precision Manufacturing: Sri Lanka is poised for precision manufacturing, leveraging a rich history in producing complex, high-value goods. This dexterity is evident across multiple sectors, including electronics (projected to generate USD 516M revenue in 2025) and the high-end garment industry, where intricate products like premium lingerie and specialized industrial fabrics (such as those used in sails and aerospace components) are manufactured for global brands. We leverage this proven local skill and culture of precision.

3. Global & Policy Advantages: We're politically neutral, which is an advantage for global trade, suppliers, and forming partnerships. In my experience, companies simply like working with Sri Lankans, and Volfpack can easily leverage this to secure partnerships and assistance. Plus, we benefit from the national goal of 70% renewables by 2030 and export incentives via free trade zones.

Why Volfpack?

This is the hardest one, as it’s a self-assessment. But here we go. We are confident we can succeed where others have not by leveraging a combination of speed, talent, and strategic relationships:

1. Speed and Capital Efficiency: We move incredibly fast. Historically, startups in this space take 5-7 years to get to market; we've made significant progress in under 3 years and likely at one-tenth the cost. While the challenges will certainly get harder, we have the resilience to deal with them.

2. Access to Best-in-Class Technology & Knowledge: Our ability to form strategic partnerships (with universities, research institutes, technology leaders, and emerging startups) ensures we have immediate and fast access to the latest global R&D, process know-how, and specialized knowledge. We don't just innovate internally; we strategically acquire the best technology and expertise available. We will be announcing a few of these partnerships in the coming months!

3. Talent Magnetism: Entering a new, bold industry with a clear mission means we can attract the best talent. This company is a talent magnet, and our support network allows us to draw exceptional engineers and chemists to our team.

The Road Ahead

We will be raising in January. Details will follow, as we have a super company with an unbelievably smart team, which is helping us structure the next round (TBA). We will continue to improve the performance of our supercaps and increase our production speed.

We are absolutely enjoying the ride and will continue to do so.

We're going big and thinking big, but also being mindful that every great journey is built one step at a time.

Regards,

Charlie

Co-Founder Volfpack