Swedish energy technology company Rebaba has raised $4.6 million (SEK 44.1 million) in an oversubscribed seed round led by Sistafund, alongside EIT Urban Mobility, with participation from existing shareholders and new European investors. Founded around the reuse of electric vehicle batteries, Rebaba develops circular energy storage systems that combine second-life EV batteries with its proprietary control technology, offering solutions for residential, commercial, industrial and EV-charging applications. The company will use the funding to scale production and commercial operations across Europe, including expanding its Stockholm-based CircularHub to 40 MWh of annual capacity, hiring across multiple roles and preparing to establish additional manufacturing hubs outside Sweden.
By combining electric vehicle batteries recovered from the market with patent-pending Rebaba technology, Rebaba empowers its customers to reduce energy costs, avoid grid bottlenecks, strengthen operational resilience, and generate revenue from green energy, whilst establishing a circular battery value chain. Following one year of production at its flagship CircularHub in Stockholm, the company now operates commercial deployments across Sweden.
“Demand for energy storage is accelerating globally, driven by AI, electrification, and the transition to renewables. Conventional thinking is that we must produce new batteries for every energy storage system being deployed, but this simply isn’t true. Electric vehicle batteries are retired with 70-80% of their useful life remaining, and by 2028, returning EV batteries are projected to offer more usable capacity annually than the entire global demand for stationary battery storage. The batteries already exist. Our job is to make reuse scalable,” Paula Runsten, Rebaba Co-Founder & CEO, comments. “Europe has spent years trying to catch up in battery manufacturing. Second-life gives us a way to actually compete, profitably.”
Rebaba’s two energy storage products, Companion, a compact 40 kWh cabinet-based system for residential and smaller commercial applications, and Containerised, a larger-scale system for commercial and industrial applications, enable customers to engage in load shifting, local generation storage, peak shaving, and grid balancing services.
Rebaba is now engaged in scaling up its operations to meet growing commercial demand, including fulfilment of previously unannounced commercial agreements recently signed in Sweden and Denmark.
“The Rebaba platform is built to work with virtually any electric vehicle battery. By keeping the complexity within our core technology, we can assemble the rest of the Rebaba system from standard, locally available components. In practice, this means that essentially any technician, anywhere in the world, can build a Rebaba system,” Felix Kruse, Rebaba Co-Founder & CTO, comments. “That flexibility is what has opened the door to so many of our partnerships, both in how we source batteries and how we reach new markets. It allows us to offer clean, European-engineered, high-performance energy storage systems anywhere in the world, at a price point that competes with the cheapest alternatives. That combination of performance without the premium is what makes Rebaba systems affordable and scalable.”
The company’s plans include expansion of its CircularHub to a capacity of 40 MWh/year, an amount that would avoid approximately 4,000 tonnes of CO2/year, as well as hiring across multiple roles.
Aiming to serve European markets while optimizing the logistical footprint of its operations, Rebaba is also taking steps towards establishing additional manufacturing CircularHubs beyond Sweden.
Rebaba’s expansion will be supported by its distribution network, which now includes signed agreements in place across Sweden (KP Energy), wider Scandinavia (OKQ8), Germany, Austria and Switzerland (nanuq), and France (Smartports), with further major European distribution partnerships that have been signed but are yet to be announced.
Marie Geneste, Partner at Sistafund, comments: “Europe’s energy transition depends on scaling storage fast, without creating new dependencies on scarce raw materials or costly imports. Rebaba turns retired EV batteries into high-performance storage systems that can be built locally and compete on price. That is what convinced us to lead this round: circularity without compromise, and a team with the potential to build a European leader in energy storage.”
Read the orginal article: https://arcticstartup.com/rebaba-closes-4-6-million-seed/
