The global demand for copper is substantial, but with the shift towards renewable energy and the expansion of data centers, it’s set to increase significantly. A recent study indicates that by 2050, we must produce more copper than has ever been extracted throughout human history.

Much of this copper is utilized in the electrical grid, which is aging in the U.S.

“We’re reaching a critical point with AI and the electrification of nearly all sectors, resulting in a scenario where the energy grid is strained and overstressed,” stated Amir Mashal, founder and CEO of Arcturus, in an interview with TechCrunch.

While one approach may be to simply increase copper usage, Mashal noted that his stealth-mode startup offers a different solution. Arcturus aims to decrease the energy lost as heat in electrical conductors by integrating carbon nanomaterials into copper and aluminum through laser technology. Substituting traditional copper with Arcturus’s composite would enable equal-sized power lines to transmit more electricity.

In practical terms, this could lead to a 50% reduction in electrical grid losses, potentially freeing up around 3% more electricity on average and up to 10% more during peak congestion when the grid is under the most pressure. At the lower end, this represents approximately a year’s worth of growth in demand in the U.S.

“Copper becomes less conductive as it heats up, causing more energy to be wasted as heat the hotter it gets,” Mashal explained. “As I continued to delve deeper into the issue, everything began to resonate with me because I recognized that this limitation recurs everywhere. The contemporary world is fundamentally powered by metals.”

Although the grid is the ultimate aim for a materials startup like Arcturus, the company is initially targeting smaller applications including drones, robotics, and data centers, where even minor increases in electricity efficiency can result in significant benefits. 

The company exclusively disclosed to TechCrunch that it secured $8 million in a seed funding round led by Initialized Capital, with contributions from Toyota Ventures, Breakthrough Energy Discovery, 1517, and Wireframe Ventures.

Mashal has been quietly perfecting his materials in a garage located in Malibu, California, where he can currently manufacture several centimeters of wire as a proof of concept. With the new investment, he aims to increase production to tens of meters, enabling testing of the nano-infused materials in diverse applications, including electric motor windings and busbars for power distribution.

Although the properties of these materials are novel, Mashal stated they are designed to serve as a “drop-in replacement” for existing copper and aluminum applications. “They retain the same form factors, require no system redesign, and necessitate no new training for personnel to manage or crimp the material.” 

Materials from Arcturus could lead to lighter drones or more efficient electric vehicles. By minimizing heat loss, they can also lessen the cooling demands of data centers.

“All those sectors encounter similar bottlenecks, whether it’s a drone striving for double flight duration or a graphics card overheating,” Mashal remarked. “These are all areas where our materials can create significant disruption.”