The Battery That Spins
Qnetic bets on mechanical flywheel storage over lithium-ion — building the world's largest flywheel test facility in Shanghai as it heads toward 2027 pilots.
Qnetic is betting on flywheel energy storage instead of lithium-ion technology – and aims to redefine a multi-billion-dollar market with a mechanical solution. The decisive real-world test begins in Shanghai.
- A mechanical alternative: Qnetic develops flywheel energy storage systems that store electricity purely mechanically, without lithium or other critical raw materials.
- Industrial milestone: With the construction of what the company says is the world’s largest flywheel test facility in Shanghai, Qnetic is entering a critical phase on the path to commercialization.
- High expectations, first proving ground ahead: Despite raising capital and securing non-binding letters of intent worth more than US$100 million, Qnetic must demonstrate its technology in real customer deployments beginning in 2027.
Listening to Michael Pratt, one is first struck by a surprising statement. “You can’t beat lithium-ion batteries on cost,” says the CEO of U.S. startup Qnetic – even though his company is competing directly in that market.
For Pratt, however, there is no contradiction. What matters, he argues, is not the purchase price of an energy storage system, but the economic value it delivers over several decades.
That philosophy is driving Qnetic’s development of flywheel energy storage technology. In July 2026, the company announced two significant milestones. At its Technology Center in Shanghai, it is building what it describes as the world’s largest flywheel testing facility. At the same time, it is assembling Pulsar, its first industrial-scale energy storage system with a capacity of 200 kilowatt-hours.
Mechanical energy storage instead of chemistry
Unlike conventional battery storage systems, Qnetic relies entirely on mechanical energy storage. Excess electricity accelerates a rotor that is magnetically levitated and spins inside a vacuum with minimal friction. When electricity is needed, the stored rotational energy drives a generator.
Because no electrochemical reactions occur, the company says its system avoids battery degradation, fire risks, and dependence on critical raw materials such as lithium and cobalt.
Pratt believes this is the company’s true competitive advantage. While lithium-ion batteries typically complete only one full charge-discharge cycle per day over their economic lifetime due to degradation and warranty constraints, a flywheel can theoretically perform an unlimited number of charge and discharge cycles.
As a result, the overall economic return of the storage asset increases substantially. By 2030, Qnetic expects lifetime storage costs to be roughly 50 percent lower than comparable lithium-ion systems, based on its internal calculations.
The company also highlights a geopolitical advantage. According to Qnetic, approximately 95 percent of the world’s battery cells are currently manufactured in China. Its flywheel systems instead rely on globally available materials such as steel, aluminum, copper, and carbon fiber, reducing dependence on concentrated supply chains.
“It’s not about cost – it’s about value.” — Michael Pratt, Co-founder and CEO of Qnetic
The real test will determine market entry
The new Shanghai testing facility marks Qnetic’s transition from research and development to industrialization.
According to the company, more than US$1 million is being invested in the facility. Construction of the foundation and supporting infrastructure of the flywheel test cell is already underway, followed by installation and validation of the first system.
The project has been supported by an internationally recognized specialist in high-speed spin testing. Because of the enormous amount of kinetic energy stored in the rotor, Qnetic says the facility operates on a scale with few if any comparable references worldwide.
The company sees its technology primarily in applications where conventional battery systems reach their limits. These include AI data centers with rapidly fluctuating power demand, industrial power grids, microgrids, and renewable energy storage.
AI data centers in particular – where electricity demand can rise or fall by several hundred megawatts within minutes – are viewed as an attractive market for a storage resource capable of delivering extremely fast response times and long service life.
From funding to commercial validation
According to the company, Qnetic has financed a significant part of its development through crowdfunding, including offerings under the U.S. Regulation Crowdfunding (Reg CF) framework. Qnetic states that it completed a Reg CF financing round in March 2026 and intends to continue strengthening its capital base through additional financing activities during 2026.
With construction of the Shanghai test facility and assembly of its first industrial-scale system underway, the company is moving into the next phase of its commercialization strategy. According to Qnetic, non-binding Letters of Intent have been signed with prospective customers, while the focus is now shifting to validating the technology under industrial operating conditions.
The first pilot installations at customer sites are planned for early 2027, subject to project progress. Their results are expected to provide important data on the system’s performance under real-world operating conditions. The Shanghai test facility is intended to support this validation process and, according to the company, represents an important milestone in the further development of the technology.
FAQ
What makes a flywheel energy storage system different from a lithium-ion battery?
While lithium-ion batteries store energy chemically, Qnetic’s technology stores energy as the rotational energy of a high-speed flywheel. According to the company, this eliminates electrochemical degradation, potentially enabling a much longer service life and virtually unlimited charge-discharge cycles.
What applications is the technology designed for?
Qnetic is primarily targeting AI data centers, industrial facilities, microgrids, and electric utilities. The technology is intended for applications that require rapid balancing of large fluctuations in electricity demand.
Why is the new testing facility being built in Shanghai?
The facility is designed to validate the performance and safety of the company’s first 200-kWh system under realistic operating conditions. According to Qnetic, it will be the world’s largest flywheel testing facility and represents the final step before commercial deployment.
How advanced is Qnetic commercially?
The company is still in the pre-commercial stage and currently generates no revenue. Although it reports non-binding letters of intent worth approximately US$110 million, commercial customer projects are expected to begin in early 2027.
Why does raw material sourcing matter?
Qnetic’s systems are built using materials such as steel, aluminum, copper, and carbon fiber rather than lithium and cobalt. According to the company, this could reduce dependence on highly concentrated battery supply chains and allow for broader sourcing diversification.
About Qnetic
Qnetic is developing advanced flywheel energy storage systems that deliver safe, durable and cost-effective long-duration energy storage for the modern electric grid. The company’s proprietary technology combines high-performance mechanical energy storage with advanced controls to support renewable energy integration, grid flexibility, microgrids and industrial resilience. Headquartered in New York, Qnetic is advancing a new generation of energy storage systems engineered for decades of operation with minimal degradation. For more information, visit www.qnetic.energy.
Investor note
Qnetic’s current crowdfunding round in partnership with DealMaker offers retail investors an opportunity to participate in the company’s next growth phase. To review offering documents, risk disclosures, and investor FAQs, visit https://invest.qnetic.energy.
