Log9 Materials, once heralded as a poster child for India’s deep-tech revolution in battery technology, now stands as a sobering case study of overambition, strategic missteps, and the volatile nature of innovation-driven ventures. Founded in 2015 by Akshay Singhal, Log9 promised to change the future of energy storage with its pioneering aluminium-air fuel cells and later its lithium-titanate (LTO) battery technology. But by mid-2025, the company has become a symbol of collapse in India’s EV startup space, weighed down by mounting debt, missed opportunities, and operational chaos.
From Disruption to Disrepair: The Rise and Shift
Log9 Materials began its journey with an ambitious vision — to deliver cleaner, longer-lasting energy solutions. The startup’s initial work focused on aluminium-air fuel cells, a novel technology with the potential to revolutionize electric mobility by offering longer driving ranges and faster recharge times than traditional lithium-ion batteries. This innovation placed Log9 in the limelight, attracting attention from investors and policy makers alike.
However, in 2021, the company made a strategic pivot. Betting on the future of rapid-charging technology, Log9 shifted to lithium-titanate (LTO) batteries. These batteries offered ultra-fast charging and a longer lifecycle, making them theoretically ideal for fleet and logistics vehicles. But the move proved risky and, eventually, fatal.
LTO batteries, while technologically sound, suffered from commercial limitations. They were more expensive and had lower energy density than lithium iron phosphate (LFP) batteries, which were becoming the global standard. This pivot away from a niche but promising aluminium-air segment into a less cost-efficient alternative began to sow the seeds of financial and operational stress.
Building Big, Falling Hard
In 2022, Log9 announced with fanfare the setup of its first cell manufacturing plant in Jakkur, Bengaluru. With a targeted annual production capacity of 50 MWh and an investment of over ₹150 crore, the plant symbolized India’s push to localize EV battery production.
But progress hit a major snag. The company depended on Chinese engineers to set up and calibrate imported manufacturing equipment. Due to geopolitical tensions and delays in visa approvals, the engineers couldn’t reach India on time. This bottleneck severely delayed production schedules and created a backlog in order fulfilment, eroding customer trust and drying up incoming cash flows.
Meanwhile, Log9’s operational costs kept rising. In an attempt to recover, the company diversified into electric vehicle (EV) leasing — entering deals with companies like Omega Seiki Mobility and Quantum Energy. While this strategy initially boosted revenue numbers, it masked deeper problems.
The EV leasing model required heavy upfront capital, had slim margins, and depended on efficient collection of monthly lease rentals — something Log9 struggled with. Many EVs remained idle due to delays in regulatory clearances, customer on-boarding issues, and technical problems with the battery packs themselves. This added to the financial strain and drained working capital reserves.
A Financial House of Cards
By the end of the financial year 2024, Log9 reported revenues of ₹110.3 crore, a sharp jump from ₹25.5 crore in FY22. But beneath the surface, the balance sheet told a different story. The company reported losses of ₹118.6 crore for FY24 and debts totaling over ₹200 crore. With very little cash left to sustain operations, the startup entered a downward spiral.
In a desperate bid to cut costs, Log9 laid off more than 115 contractual employees in early 2024. By May 2025, the total headcount had shrunk from a peak of 350 to fewer than 50 employees. Morale dipped further as performance bonuses were withheld and vendors went unpaid for months.
In March 2025, co-founder and COO Kartik Hajela resigned following the sale of Log9’s rail-battery business to Jupiter Electric Mobility for ₹40 crore. Though the sale provided temporary relief, it also signaled that the company was entering liquidation mode, divesting non-core assets to stay afloat.
Legal Woes and Credibility Collapse
Log9’s troubles soon spilled into the courtroom. Fleet operator BluWheelz accused the company of delivering EVs with substandard range and falsified billing. BluWheelz alleged that the battery systems failed to deliver the promised mileage, resulting in major operational losses. In response, Log9 filed counterclaims for unpaid invoices worth ₹1.33 crore.
The legal battle further dented investor confidence and strained relationships with other fleet operators. With growing scrutiny, several clients either cancelled or indefinitely paused existing deals, further weakening the revenue pipeline.
Meanwhile, investors — including marquee names like Amara Raja Batteries, PETRONAS Ventures, and Peak XV — stopped infusing fresh capital, forcing the company to explore emergency funding options and strategic sales of intellectual property.
The Search for a Lifeline
In recent months, Log9 has begun pitching a pivot to LFP battery manufacturing, hoping to raise between ₹100 and ₹150 crore to retrofit its Jakkur plant. This shift would allow it to align with current global trends, as LFP batteries dominate electric mobility due to their cost-effectiveness, safety, and solid energy density.
However, securing that funding remains a massive challenge. Most investors remain wary of backing a company already grappling with unsustainable debt, production halts, and a damaged brand image. If it fails to raise capital quickly, Log9 may soon face proceedings under India’s Insolvency and Bankruptcy Code.
Lessons for India’s Startup Ecosystem
The Log9 collapse presents several hard-earned lessons for India’s startup landscape:
- Innovation must align with commercial viability. LTO batteries were innovative but lacked the cost-effectiveness and scalability needed for mass adoption in India’s price-sensitive market.
- Overdependence on foreign expertise is risky. Log9’s reliance on Chinese engineers for mission-critical production exposed it to geopolitical and logistical vulnerabilities.
- Revenue growth doesn’t equal sustainability. Although top-line numbers looked promising, they were heavily propped up by asset-heavy leasing models and short-term service contracts — neither of which ensured profitability.
- Diversity in business models must be strategic, not reactionary. Log9’s shift into EV leasing appeared more like a financial escape hatch than a strategic long-term move, and it backfired.
- Cash flow management is king. In deep-tech ventures where breakeven timelines are long, managing burn rate and ensuring healthy cash reserves is critical.
What’s Next?
As of May 2025, Log9’s future hangs in the balance. It is actively seeking strategic buyers, fresh funding, or partnerships to resurrect its cell manufacturing vision under the LFP banner. However, with core leadership gone, workforce decimated, and credibility eroded, any turnaround will be an uphill battle.
Even if new investors step in, they will likely demand complete restructuring, a new management team, and a clear go-to-market roadmap. For now, Log9 Materials serves as a stark reminder that in the world of deep-tech, innovation alone cannot guarantee survival.