War cannot stop Israeli startups determined to thrive in the desert

Amazon-backed Israeli robotics startup BionicHIVE and Carrar, a startup developing battery modules and thermal management systems for electric vehicles, are both based in the small desert town of Sderot, less than a mile from Gaza. They were founded and run by people who defy the odds, living and working in an arid region that has been subject to constant rocket attacks for more than twenty years and terrorist attacks for seven decades.

BionicHive’s SqUID robot, with its built-in cameras and sensors, navigates warehouses and climbs shelves, guided by its AI algorithms to sort, select and put away packages precisely and efficiently. The scalable SqUID robot fleet is nearly error-free and adapts to the warehouse’s existing structure and processes, saving 35-50% per warehouse transaction while increasing storage space. It also works just as well with humans as it does in a dark warehouse. “Logistics and supply chain are like emergency services,” says co-founder and CEO Liran Raizer, and they require flexible, efficient and scalable automation.

When Elon Musk saw a video of SqUID in action three years ago, he tweeted, “The robot future is coming.” A year later, BionicHIVE received funding from the Amazon Industrial Innovation Fund in recognition of “its differentiated solution that can optimize safety for repetitive tasks at any height in the supply chain workplace, and this type of technology is driving innovation.” The World Economic Forum wrote of SqUID and warehouse automation, “There are tasks that are better suited to robots, such as those that deal with repetitive or hazardous work. Additionally, in countries with labor shortages, robots can relieve pressure on hiring and labor costs.”

Last year, Maersk announced a pilot project with BionicHIVE at its warehouse in Mira Loma, California. BionicHIVE expects to pilot projects with two more customers in the near future. The company has raised $15 million so far.

Using innovative internal thermal management based on two-phase immersion technology, Carrar is developing automotive-grade commercial battery modules for electric vehicles that triple battery life. “We use liquid-to-vapor transition, similar to air conditioning technology,” says Avinoam Rubinstain, founder and CEO of Carrar. Addressing the key challenges facing the electric vehicle industry such as battery safety, longevity and cost, the company aims to “provide optimal performance for electric vehicles in all weather conditions and improved passenger safety while reducing the environmental impact of electric vehicle batteries,” says Rubinstain.

Carrar has raised $11 million so far and is testing its batteries with Volvo, Volkswagen and GM. Its target market, the thermal management and battery modules and packs market, is estimated to reach $66 billion by 2030.

The October 7 Hamas terrorist attack on Sderot and the nearby agricultural settlements presented the two startups with new and difficult challenges. Many of their employees were called up for reserve duty or evacuated from their homes when the Israeli government declared the area a no-go zone. Very quickly, however, both BionicHIVE and Carrar resumed (almost) normal operations. Carrar had a November deadline for its project with Volvo. Employees worked hard, giving up their weekends and flying back and forth between Israel and Germany to meet the deadline. BionicHIVE had planned to demonstrate its robots at a major trade show in the US in February. Working from different remote locations and with greatly reduced staff, they also achieved their goal and presented SqUID at the show.

In December 2023, the Israel Innovation Authority announced that several key ministries have joined forces to invest over NIS 100 million to establish nine new regional innovation centers across Israel. The innovation centers will encourage the emergence and growth of new startups with strong regional ties and drive high-tech employment in the selected areas. One of these areas is the Western Negev Technological Center for Security and Resilience, which will operate a center in the Gaza border region focused on homeland security and food resilience.

“We see our company as an island of stability for our employees,” says Carrar’s Rubinstain. BionicHIVE’s Raizer says his startup is part of “a movement of technology companies that really believe in the South, and that’s part of our message to the world. We want to continue to be here as an anchor for people who believe in this region.”