General Motors announced on Friday the acquisition of Algolion Ltd, a software startup based in Israel specializing in battery issue detection. This strategic move by GM will enable the automaker to swiftly introduce a cost-effective early hazard detection system to the market.
The undisclosed deal arrives at a crucial time when automakers are heavily investing in electric vehicle (EV) manufacturing and racing to advance battery technology. Batteries, which account for up to 50% of an EV’s total cost, play a critical role in determining the vehicle’s range.
Furthermore, this acquisition aligns with the ongoing efforts of safety authorities urging U.S. automakers to enhance battery standards. Recent incidents of vehicle fires caused by faulty modules have underscored the need for improved safety measures.
Algolion has developed an advanced software solution that utilizes data from EV battery management systems. This innovative technology enables the identification of anomalies in cell performance, offering early detection of potential battery hazards, including “thermal runaway propagation events.” Thermal runaway refers to a rapid and uncontrollable increase in temperature that can result in EV fires.
Founded in 2014, Algolion will now join GM’s Technical Center in Herzliya, Israel, alongside over 850 employees. The market response to this development was positive, with GM’s shares witnessing a 1% increase during Friday’s afternoon trading, mirroring the broader market trend.
