University of Nevada, Reno alumni, Denis Phares and Sean Nichols, have reached yet another major milestone in their careers. A publicly traded Chinese company's investment of $2 million in the Reno-based startup, Dragonfly Energy, which makes lithium-ion batteries, is expected to accelerate expansion of the manufacturing capacity for the growing company. 

"Our goal is to drive down the costs of energy storage," Phares said. "Manufacturing is one piece of the puzzle, but it an important one that has been neglected awhile, since the primary focus has been the development of new electrode materials."

Dynavolt Renewable Power Technology Co. Ltd. (0002684.SZ) invested $2 million to acquire 2 million shares of Series A Preferred Stock in Dragonfly Energy. The investment represents a one-third ownership stake in the company.

Dragonfly Energy started as a research and development company creating manufacturing methods for reducing the cost of energy storage. Phares and Nichols, who are both graduates of the University's Online Executive MBA program, first made their mark when Dragonfly Energy became a finalist in the 2014 Sontag Entrepreneurship Competition. The company later grew to manufacture and market a line of 12-volt deep cycle lithium-ion batteries for RV, marine and off-grid solar applications.

"The road from being a Sontag Finalist to actually getting funded has been an amazing experience," Nichols said. "Each new day brought us new challenges. As a team we worked together and grew stronger. Today we are all a bit smarter and wiser from this journey. Our team has matured as has our company. Now we are working toward creating a new standard in energy storage. This is not the end, it's the beginning of our next chapter, a very exciting time for all of us here at Dragonfly Energy."

Phares, chief executive officer of Dragonfly Energy, said the company is using the proceeds from the Dynavolt investment to widen its product offerings and accelerate its R&D program. The company currently manufactures and sells batteries for consumer and original equipment manufacturer applications, with a focus on serving the marine and RV industries.

"The investment is the best thing that could have happened to Dragonfly Energy," Phares said. "It represents a strategic partnership with a large battery manufacturer who has the understanding to recognize the importance of manufacturing innovations, the vision to accept a disruption in the way batteries have been manufactured for decades and the resources to actually implement the manufacturing innovations that we develop. We are aligned in our belief that reducing the cost of energy storage is critical to the widespread adoption of clean energy."

According to Phares, expansion of Dragonfly Energy's manufacturing capacity marks a major step in the company's goal of lowering the costs of lighter, longer-life energy storage options for customers who currently rely on lead-acid batteries. The company relies on patented, environmentally friendly processes that reduce manufacturing costs.

Dynavolt, a leading maker of energy storage products, has been heavily investing in lithium-ion and other renewable technologies that will drive its future growth. Dynavolt's chairman, Lewu Chen, said that the investment in Dragonfly Energy, which is their first U.S. investment, gives them access to technology that is expected to lower their manufacturing costs. According to Phares, the investment will help to develop technology that will lower manufacturing costs and could potentially become a new standard for all Li-ion manufacturers - both domestically and abroad. Dragonfly Energy intends to expand their pack manufacturing capabilities in Nevada in addition to expanding cell manufacturing, Phares said.

The founders of Dragonfly Energy - Phares, Nichols, David Gong, Evan Humphreys and Justin Ferranto - will retain their ownership of the company after the Dynavolt investment.