Xerotech Raises €44M to Scale Industrial Battery Manufacturing and Accelerate Electrification of Heavy-Duty Machinery

XEROTECH LTD, an Irish high-technology battery manufacturer best known for its Hibernium® battery systems, raised significant funding over several years as it sought to scale the electrification of heavy-duty industrial vehicles. Founded in 2015 by engineer Dr Barry Flannery, the Galway-based company attracted backing from a combination of private investors, family offices and public institutions to support manufacturing growth, research and international expansion.

By mid-2024, Xerotech had raised approximately €44 million in funding, providing the capital needed to expand its production facility in Claregalway and develop customised battery packs for off-highway applications. The company positioned itself as a specialist supplier of modular, swappable battery systems designed for industrial sectors including mining, construction and materials handling, where electrification poses unique engineering challenges.

Institutional support played an important role in Xerotech’s funding journey. Enterprise Ireland supported the company as part of its mandate to help Irish technology firms scale internationally, offering both funding and strategic assistance. The Western Development Commission also backed the business, reflecting regional efforts to grow advanced manufacturing and clean-technology companies in the west of Ireland.

Private capital formed a substantial portion of Xerotech’s funding base. Early backing included investment from Irish business figures and family offices, providing patient capital to support the company’s long product development cycles. Among those investors was Dónal Daly, founder of Avoca Capital, and Gene Browne, founder of City Bin Co, whose participation helped strengthen the company’s financial position and governance as it expanded its workforce and customer base.

Xerotech’s investor group also included backing linked to Lagan Investments, with Paul O’Brien representing the firm’s interest at board level. This support added further experience in scaling industrial and infrastructure-focused businesses, which aligned with Xerotech’s capital-intensive manufacturing model.

In addition to equity funding, Xerotech explored alternative financing options to accelerate growth. The company engaged with the European Investment Bank as part of its broader funding strategy, reflecting interest from European institutions in supporting industrial decarbonisation and battery manufacturing. This form of financing was intended to complement private investment and enable increased production capacity as customer demand grew.

As part of its expansion plans, Xerotech entered discussions with international investors to raise an additional €20 million to €30 million, with a particular focus on supporting entry into the U.S. market. Management indicated that these funds would be used to strengthen commercial operations, expand engineering teams and meet demand from global industrial equipment manufacturers seeking low-emission alternatives to diesel-powered machinery.

The company experienced rapid growth during this period, with revenues reported to be increasing year on year as pilot projects converted into commercial contracts. Xerotech’s technology aimed to address one of the key barriers to industrial electrification by offering battery systems that could be rapidly deployed without requiring customers to redesign their equipment platforms.

Xerotech’s funding history highlights both the scale of capital required to build advanced battery manufacturing businesses and the level of investor interest in technologies supporting industrial decarbonisation. Support from public agencies, private investors and institutional financiers demonstrated confidence in the company’s technical capabilities and market opportunity, while also underscoring the challenges faced by deep-technology companies operating in highly competitive and capital-intensive sectors.