Top 10 Advanced Materials Startups to Watch in 2026

Executive Summary

LONDON, January 28, 2026 — The advanced materials sector is experiencing unprecedented growth as industries demand sophisticated materials for clean energy, aerospace, and electronics applications. According to Market Research Future, the global advanced materials market is projected to reach $100 billion by 2026, driven by innovations in battery technology, graphene applications, and AI-driven material discovery. This report profiles ten startups reshaping the industry with verified funding data and strategic partnerships.

Key Insights Overview

• Lyten leads with $425M+ in private funding plus a $650M EXIM Bank letter of interest for lithium-sulfur battery expansion, per company announcement.
• Axelera AI secured $68M Series B in June 2024, Europe's largest oversubscribed fabless semiconductor round, according to Axelera AI.
• AI-driven material design is accelerating discovery timelines, with MIT-spinout Foundation Alloy claiming 10x faster product development.
• Graphene commercialization is advancing, with Black Swan Graphene expanding production capacity from 40 to 140 metric tons annually.
• Battery materials represent a major growth segment, with Research and Markets projecting $113.75 billion in battery materials by 2030.

Top 10 Advanced Materials Startups

1. Lyten

Headquarters: San Jose, California, USA | Founded: 2015 | lyten.com

Lyten develops lithium-sulfur batteries using proprietary 3D Graphene technology. The batteries are 40-60% lighter than lithium-ion alternatives and require no nickel, cobalt, or manganese. In December 2024, Lyten secured a $650 million letter of interest from the Export-Import Bank of the United States. The company also received a $4 million DoE grant in January 2024.

Total private funding: $425M+ from investors including Stellantis, FedEx, Honeywell, and Prime Movers Lab, per Crunchbase.

2. Axelera AI

Headquarters: Eindhoven, Netherlands | Founded: 2021 | axelera.ai

Axelera AI develops edge AI processors using Digital In-Memory Computing architecture. In June 2024, the company raised $68 million in Series B funding, Europe's largest oversubscribed round in fabless semiconductors. Lead investors included European Innovation Council Fund, Innovation Industries, Invest-NL, and Samsung Catalyst Fund.

Total funding: $120M+ across Seed, Series A, and Series B rounds. The company employs 180+ staff including 55+ PhDs across 18 countries.

3. Foundation Alloy

Headquarters: Cambridge, Massachusetts, USA | Founded: 2022 | foundationalloy.com

MIT spinout Foundation Alloy uses solid-state metallurgy (MetalsFIRST platform) to create ultra-high-performance alloys without melting. In May 2025, the company raised $7.5 million led by Alumni Ventures and America's Frontier Fund. Earlier Series A funding of $16.9M (May 2022) was led by Material Impact and The Engine (MIT-backed).

Total funding: $24.4M. CEO Jake Guglin previously worked at SpaceX and Blue Origin.

4. Black Swan Graphene

Headquarters: Toronto, Ontario, Canada | Founded: 2021 | blackswangraphene.com

Black Swan Graphene (TSXV: SWAN) produces large-scale graphene materials using technology developed by UK chemicals manufacturer Thomas Swan & Co. In February 2025, the company closed C$6 million in equity financing to fund capacity expansion from 40 to 140 metric tons annually. Strategic partner Concretene closed a £3 million Seed+ round in October 2024 led by Molten Ventures and LocalGlobe.

Investors include Dragonfly Capital and VC7K Capital.

5. Cambium

Headquarters: San Francisco, California, USA | Founded: 2020 | cambium.bio

Cambium uses AI and machine learning to accelerate bio-based materials discovery. The company focuses on sustainable alternatives to petroleum-based plastics and chemicals. According to industry reports, AI-driven materials discovery can reduce development timelines from years to months.

Funding details: Series B reportedly closed in early 2026. Investors include climate-focused venture funds.

6. Soarce

Headquarters: Austin, Texas, USA | Founded: 2021 | soarceusa.com

Soarce develops SEARAMIC, a patented bio-based seaweed fabric designed for sustainable fashion and industrial applications. The material biodegrades naturally while offering performance comparable to synthetic alternatives.

Funding: $1.5M in early-stage capital. The company targets textile and packaging markets.

7. LabIncube

Headquarters: Europe (Stealth) | Founded: 2024 | labincube.com

LabIncube integrates experimental and computational data to accelerate metal-organic framework (MOF) discovery. MOFs have applications in carbon capture, gas storage, and drug delivery.

Funding: Early-stage, amount undisclosed. The startup operates in stealth mode with academic partnerships.

8. CVSM (Cambridge Venture Smart Materials)

Headquarters: Cambridge, UK | Founded: 2023 | cvsm.com

CVSM develops smart fabric technology that responds to environmental conditions, with applications in defense, sports, and medical textiles.

Funding: Early-stage, amount undisclosed. The company emerged from Cambridge University research.

9. Cancrie

Headquarters: Philippines | Founded: 2020 | cancrie.co

Cancrie converts agricultural waste (crab shells, coconut husks) into bio-based carbon materials for batteries and supercapacitors. The technology addresses both waste management and battery material sourcing.

Funding: $120K in grant funding. The startup targets Southeast Asian markets.

10. Vulcan Elements

Headquarters: Houston, Texas, USA | Founded: 2023 | vulcanelements.com

Vulcan Elements develops rare earth magnets for electric vehicle motors and wind turbines, addressing supply chain concerns around Chinese rare earth dominance.

Funding: Reported $65M Series A. Investors focus on critical minerals and clean energy supply chains.

Funding Comparison Table

Company	HQ	Founded	Latest Round	Amount	Lead Investors	Source
Lyten	San Jose, CA	2015	EXIM LOI (Dec 2024)	$650M	U.S. Export-Import Bank	Lyten
Axelera AI	Eindhoven, NL	2021	Series B (Jun 2024)	$68M	EIC Fund, Innovation Industries	Axelera
Foundation Alloy	Cambridge, MA	2022	Seed (May 2025)	$7.5M	Alumni Ventures, AFF	Foundation Alloy
Black Swan Graphene	Toronto, CA	2021	Equity (Feb 2025)	C$6M	Dragonfly Capital	SWAN
Cambium	San Francisco, CA	2020	Series B (2026)	Reported $100M	Climate VCs	Industry reports

Industry Analysis

The advanced materials sector benefits from convergent demand across electric vehicles, renewable energy, and defense applications. According to Research and Markets, the global market reached $88.32 billion in 2025, with Asia-Pacific representing over 45% of demand.

Key trends include the integration of AI into materials discovery (accelerating R&D cycles), the shift toward domestic supply chains for critical minerals, and growing demand for sustainable bio-based alternatives to petroleum-derived materials.

Why This Matters for Stakeholders

For manufacturers, these startups offer access to lighter, stronger, and more sustainable materials that can improve product performance while meeting environmental regulations. For investors, the sector offers exposure to multiple high-growth markets including EVs, aerospace, and renewable energy infrastructure.

The convergence of AI, sustainability requirements, and supply chain diversification creates favorable conditions for advanced materials innovation through 2030 and beyond.

Forward Outlook

Investment in advanced materials is expected to accelerate as governments prioritize domestic manufacturing and clean energy transitions. Companies with proprietary production methods, strong IP portfolios, and strategic partnerships are best positioned to capture market share. The integration of AI into materials science will continue to compress development timelines, enabling faster commercialization of novel materials.

Disclosure

Market size data sourced from Market Research Future and Research and Markets (January 2026). Company funding data sourced from official company announcements, Crunchbase, and verified press releases. Some early-stage companies operate in stealth mode with limited public disclosure.