War can't stop Israeli startup determined to thrive in the desert

The empty streets of Sderot, southern Israel, Saturday, November 18, 2023. The Israeli government… [+] Voluntary evacuations from the town, near the border with the Gaza Strip, began after it was attacked by Hamas on October 7. (AP photo/Ariel Shalit)

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BionicHIVE, an Amazon-backed Israeli robotics startup, and Carrar, a startup developing battery modules and thermal management systems for electric vehicles (EVs), are both based in Sderot, a small desert town less than a mile from Gaza. The companies were founded and run by hard-working people who live and work in an arid region that has endured relentless rocket attacks for more than two decades and terrorist attacks for seven decades.

BionicHives' SqUID robot is equipped with built-in cameras and sensors to navigate warehouse floors and climb shelves. Guided by AI algorithms, it sorts, selects and puts away packages with precision and efficiency. Virtually error-free and scalable, SqUID robot fleets adapt to a warehouse's existing structure and operations, increasing storage space while reducing costs by 35%-50% per warehouse transaction, working alongside humans and even in dark warehouses. Co-founder and CEO Liran Raizer says logistics and supply chains are like emergency services, requiring automation that is flexible, efficient and scalable.

BionicHIVE's flexible bot, SqUID

Gil Press

Three years ago, Elon Musk saw a video of SqUID in action and tweeted, “The future of robots is coming.” A year later, BionicHIVE received funding from the Amazon Industrial Innovation Fund for its differentiated solution to optimize safety for repetitive tasks at any height in supply chain workplaces – technology that drives innovation forward. Speaking about SqUID and warehouse automation, the World Economic Forum said that there are tasks that robots are better suited to, such as repetitive or dangerous tasks. Additionally, in countries with labor shortages, robots can reduce the burden of hiring and wage costs.

Last year, Maersk announced a pilot project with BionicHive at its Mira Loma, California, warehouse, and BionicHive plans to conduct pilot projects with two more customers in the near future. The company has raised $15 million to date.

Carrar is developing commercial automotive-grade battery modules for EVs that triple battery life using innovative internal thermal management based on two-phase immersion technology. “We're leveraging the liquid-to-vapor transition, similar to air conditioning technology,” says Avinoam Rubinstain, founder and CEO of Carrar. By addressing the EV industry's key challenges, including battery safety, lifespan and cost, the company aims to provide optimal performance for electric vehicles in all weather conditions and improve passenger safety while reducing the environmental impact of EV batteries, says Rubinstain.

Karrall has raised $11 million to date and is testing its batteries with Volvo, Volkswagen and GM. Its target market, thermal management and battery modules and packs, is projected to reach $66 billion by 2030.

Carrar battery module

Gil Press

The October 7 Hamas terrorist attack on Sderot and nearby agricultural settlements presented the two startups with new and difficult challenges. Many employees were called up to reserve duty or evacuated from their homes as the Israeli government declared the area a closed security zone. But BionicHIVE and Carrar quickly resumed (almost) normal operations. Carrar had a November deadline for a project with Volvo. Employees worked hard, sacrificing weekends to fly back and forth between Israel and Germany to meet the deadline. BionicHIVE had planned to show off its robot at a major trade show in the United States in February. With a significantly reduced workforce and working from various remote offices, they achieved their goal and presented SqUID at the trade show.

In December 2023, the Israel Innovation Authority announced that several key government ministries will work together to invest more than NIS 100 million to establish nine new regional innovation centers across Israel. The innovation centers will foster the emergence and growth of new startups with strong ties to the community and promote high-tech jobs in selected areas. One of these areas will be the Western Negev Tech Center for Security and Resilience, which will operate a center in the Gaza border area and focus on homeland security and nutritional resilience.

“We see ourselves as an island of stability for our employees,” says Karas Rubinstein. Bionic Hives' Lazer says his startup is part of a movement of tech companies that really believe in the South, and that's part of our message to the world: We want to remain here as a hub for people who believe in the region.

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