Ann Arbor startup EGI Battery closes $10 million seed round

EGI Battery Inc., a Michigan-based developer of lithium-ion batteries for aerospace, uncrewed aerial systems (UAS), robotics and mission-critical infrastructure, announced last Tuesday it had closed a $10 million seed financing round led by TSV Capital and supported by several U.S. family offices.

The company said the proceeds will support expansion of its Zeeb Campus manufacturing site just outside Ann-Arbor, engineering and product development for commercial and government clients, and efforts to build a U.S.-based supply chain that minimizes reliance on Chinese-sourced materials. 

EGI said it is aiming for ISO 9001 and AS9100 quality certifications and has set a target that at least 95% of its materials, by cost, will be compliant with the National Defense Authorization Act (NDAA) requirements by 2028.

Tom McGuckin, EGI’s founder and CEO, described the investment as validation of the company’s technology and its plan to scale Michigan manufacturing to meet a 2026 commercial timetable. Eugene Zhang, a founding partner at investor TSV Capital, said the firm views domestic advanced battery manufacturing as both a market opportunity and a strategic priority.

The funding comes amid heightened interest in domestic battery supply chains for both commercial and defense applications. Policymakers and manufacturers have pushed to reduce dependence on overseas suppliers, particularly for materials and components sourced from China, citing national security and supply-chain resilience. Federal programs and private investors have increased support for domestic battery production over the past several years, with billions in incentives flowing to large-scale gigafactory projects and smaller technology firms alike.

EGI positions itself in a crowded market that includes established battery makers, battery start-ups, and companies pursuing alternative chemistries and manufacturing approaches. The company’s focus on dual-use applications, civilian and defense, could open opportunities with government procurement, but will also require meeting stringent certification and supply-chain transparency standards.

Battery manufacturing remains capital-intensive and competitive. Large incumbent makers and recent entrants alike face challenges including securing raw materials (lithium, nickel, cobalt), meeting environmental and safety regulations, and achieving cost and performance benchmarks for specific end uses such as aerospace or defense, where reliability and certification are paramount.

EGI’s stated pursuit of AS9100 (a widely used aerospace quality management standard) suggests a pathway toward aerospace and defense contracts, but attainment of such certifications and long-term supplier qualification can take many months to years and require third‑party audits.

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