Xanadu Awarded $2.0M ARPA-E Grant for Quantum Battery Research

Xanadu Quantum Technologies has been awarded $2,027,507 by the U.S. Department of Energy’s Advanced Research Projects Agency-Energy (ARPA-E). The grant is part of the Quantum Computing for Computational Chemistry (QC3) program, which aims to leverage quantum algorithms for simulations in chemistry and materials science. Xanadu will lead a three-year project in partnership with the University of Chicago to develop a photonic quantum simulation platform specifically for the development of next-generation batteries.

The project focuses on modeling defect formations in battery materials to improve energy density and longevity. Technical goals include achieving a 100x reduction in runtime for these simulations compared to classical methods. To reach this benchmark, Xanadu is developing specialized algorithms for X-ray absorption spectroscopy and reaction rates, supported by molecular structures and embedding models provided by the University of Chicago. These tools are intended to be transferable to other energy sectors, including nuclear chemistry and petrochemical production.

This award coincides with Xanadu’s pending business combination with Crane Harbor Acquisition Corp. (Nasdaq: CHAC). The merger is expected to capitalize the combined entity with approximately $500 million, positioning it for listing on both the Nasdaq and the Toronto Stock Exchange. Xanadu intends to use the ARPA-E funding to establish a roadmap for fault-tolerant quantum platforms in industrial R&D, addressing computational bottlenecks currently slowing the progress of high-capacity energy storage technologies.

For further details on the project objectives and Xanadu's technical roadmap, consult the official press release here.

March 10, 2026