Xanadu Secures $2.03 Million ARPA-E Grant, Eyes SPAC Merger to Raise $500 Million
Xanadu Quantum has won a $2.03 million ARPA-E grant to develop quantum algorithms that cut battery simulation runtimes by 100×, aiming for higher energy density and longer life. It will merge with Crane Harbor Acquisition to become NewCo with $500 million in capital, including $225 million from trust and $275 million private placement.
1. ARPA-E Grant for Quantum Battery Simulations
Xanadu Quantum Technologies has been awarded $2,027,507 under the DOE’s ARPA-E QC3 program to develop specialized quantum algorithms targeting X-ray absorption spectroscopy and reaction rate simulations of battery materials. In partnership with the University of Chicago, the three-year effort aims to achieve a 100× reduction in simulation runtime while maintaining high accuracy, accelerating the design of higher energy density, longer-lasting batteries.
2. SPAC Merger and Pro Forma Capitalization
Xanadu recently agreed to merge with Crane Harbor Acquisition Corp., creating NewCo expected to list on Nasdaq and the Toronto Stock Exchange. The combined entity will hold approximately $500 million in gross proceeds—$225 million from Crane Harbor’s trust and $275 million from a committed private placement—to fund quantum computing and materials science initiatives.
3. Pipeline Opportunities and Long-Term Impact
Beyond the initial grant, Xanadu is pursuing larger-scale awards across the U.S. and Canada to extend quantum simulation applications into superconducting power lines, engineered magnets, nuclear chemistry and petrochemical production. This strategic momentum positions quantum computing as a foundational tool for next-generation energy storage and industrial R&D over coming decades.