“Hong Kong has also offered a range of funding and investment support schemes to help us to accelerate the commercialisation, further research and development, as well as expanding its manufacturing capabilities.”

Hong Kong has long been recognised as a global financial hub and a gateway to Chinese Mainland. In recent years, it has also emerged as a centre for innovation and technology (I&T), supported by the Hong Kong Science and Technology Parks Corporation (HKSTP). Among the notable companies in this ecosystem is GRST, a clean battery manufacturer based in the HKSTP.

Co‑founded by Justin Hung Yuen and Dr Bill Ho, GRST was established in 2015 with the mission of developing sustainable lithium‑ion batteries. Dr Ho is the CEO/CTO with a PhD in Chemistry and extensive experience in electrochemistry and green chemistry.

GRST's innovative binder technology, which holds the active materials on the electrodes, is free of toxic PFAS “Forever Chemicals” and enables recycling to high purity black mass including lithium and other valuable materials through simple water dissolution process. GRST’s binder materials and technology are compatible with all existing battery chemistries, types and manufacturing equipment with no compromise in performance or cost and the company is producing binder and batteries at commercial scale.

GRST’s joint venture (JV) company, Pillar Energy (0.5 GWh capacity), invested by the Chairman of RealTek semiconductors and several local Chinese electronic manufacturers, is using GRST’s PFAS‑free water‑recyclable binder materials to produce lithium‑ion batteries at commercial scale for use mainly in electric 2 & 3 wheelers for Asia. In addition to demonstrating its technology at commercial scale with its JV factory, GRST is at advanced stages of testing its binder materials with multiple Tier 1 & 2 battery manufacturers in China and Europe for end customers who want PFAS‑free batteries. GRST is also backed by The Earthshot Prize (winner 2023), Amplifier programme under Temasek Trust, Google Startups for Sustainable Development, Unreasonable Impact with Barclays, and other climate tech accelerator programmes.

​​​​​​​Hong Kong's Funding and Investment Support for Deep-Tech Company

Securing funding is a critical challenge for many deep‑tech startups, as the long development timelines and capital‑intensive nature of their projects can make them less attractive to traditional venture capitalists. However, as a leading financial centre, Hong Kong's innovation ecosystem has developed a robust funding ecosystem to enable access to local and global funds and support the growth of deep‑tech companies like GRST.

Since 2015, GRST has secured US$80 million in a funding, including notably the family office of TAL Apparel, one of the world's largest apparel manufacturers, alongside Nan Hung Yeh, Chairman of Realtek Semiconductor Corporation. These investment have enabled GRST to validate its materials at commercial scale and has positioned it to achieve its goal of becoming the global standard for PFAS‑free water‑recyclable binder technology. Mr Yeh and TAL Group Chairman Harry Lee have thus joined GRST's board, bringing valuable expertise to the table to help propel GRST technology into the global market.

Hong Kong has also offered a range of funding and investment support schemes to help deep‑tech companies like GRST thrive in the city. Key funding programs available include the Innovation and Technology Fund (ITF) and the Technology Voucher Programme (TVP). The TVP helps local enterprises enhance productivity and business processes through technological solutions. GRST has used the TVP to develop a Customer Relationship Management (CRM) system, receiving HK$391,120 in funding. This has streamlined operations and improved customer engagement. In 2022, the Public Sector Trial Scheme for Technology Companies (PSTS-TC) was introduced, providing up to HK$1 million per project for R&D and public sector trials. GRST, with support from the Electrical and Mechanical Services Department, conducted trials on a green‑manufactured UPS system, receiving HK$573,634. This project aims to enhance the sustainability of public transportation by improving energy efficiency and reducing environmental impact.

In addition to direct funding support, HKSTP also facilitates connections between deep‑tech startups and a network of venture capitalists, angel investors, and corporate partners who are interested in supporting cutting‑edge technologies. This collaborative approach has been instrumental in helping GRST and other deep‑tech companies secure the necessary funding to turn their innovative ideas into successful businesses.

The comprehensive funding, investment, and support schemes provided by the Hong Kong government, HKSTP, and private investors – such as family office of TAL Apparel, Realtek, and the Earthshot Prize – have been instrumental in GRST's growth and success. These initiatives have not only enabled the company to accelerate its R&D efforts, but also facilitated its collaboration with academic and research institutions, and supported the establishment of its advanced manufacturing capabilities in the city. By leveraging these robust support mechanisms, GRST has solidified its position as a leading deep‑tech innovator, reinforcing Hong Kong's reputation as a hub for technological advancement.

Hong Kong's Strategic Location as a Bridge between Chinese Mainland and the Global Market

Hong Kong's strategic position in the Guangdong‑Hong Kong‑Macao Greater Bay Area (GBA) offers deep‑tech companies like GRST significant advantages, including collaboration with educational institutions and access to a large talent pool. This was a key factor in GRST choosing the city for its global headquarters. GRST’s finance, legal, and executive teams operate from Hong Kong, allowing efficient management of global operations, fundraising, and strategic partnerships. The city’s proximity to Chinese Mainland, the largest battery market, enhances GRST's access to supply chains and consumer demand. Hong Kong’s superior transportation infrastructure further supports efficient product distribution across the Asia‑Pacific.

While maintaining its R&D centre in Hong Kong, GRST has production facilities in Guangdong to benefit from lower costs and strong industrial infrastructure, enabling scaling to meet global demand. The R&D team collaborates closely with manufacturing teams in Chinese Mainland for effective technology transfer.

Support from HKSTP, through facilities like the Advanced Manufacturing Centre and Data Technology Hub, has been crucial in streamlining GRST’s operations in Chinese Mainland. Additionally, Hong Kong’s global financial network has been pivotal for GRST’s growth, facilitating early investor connections and funding necessary for R&D investment in sustainable battery solutions.

In summary, Hong Kong's strategic location, infrastructure, access to capital and talent, and supportive ecosystem have been vital in positioning GRST as a leading innovator in battery technology.

Talent Development and Infrastructure Support for Deep-Tech Company Growth

Hong Kong's strategic focus on strengthening its I&T ecosystem has provided significant benefits for deep‑tech companies like GRST, enabling them to thrive and drive technological advancements. The Hong Kong government is actively working to enlarge the city's I&T talent pool, aiming to double the number of I&T practitioners to 100,000 by 2030. This includes initiatives to attract and nurture local and international talent, which has directly benefited GRST in recruiting skilled professionals to drive their innovation, including PhD researchers from Germany focused on lithium‑ion battery research and experienced engineers from a leading battery company.

By tapping into this growing talent pool, GRST has been able to assemble a diverse and highly skilled team. The leadership team includes four PhDs, each bringing extensive battery and chemistry research experience from prestigious institutions such as ASTRI, NAMI, and Fraunhofer ISE. This wealth of expertise has enabled GRST to accelerate the development and deployment of their cutting‑edge deep‑tech solutions. The team's multidisciplinary background and advanced knowledge in areas such as materials science, green chemistry, engineering, and data analytics have been instrumental in driving innovation and ensuring that GRST remains at the forefront of technological advancements. A key innovation from GRST is its PFAS‑free water‑recyclable binder technology, which releases up to 40% less greenhouse gases during manufacturing and up to 80% less during recycling compared to current industry practices.

GRST has been able to leverage this specialised infrastructure and the broader I&T ecosystem to collaborate with other industry players, access resources, and scale its operations. The availability of shared research and development facilities, as well as the proximity to other technology‑focused organisations, has fostered a culture of innovation and collaboration, allowing GRST to stay at the forefront of their field.

The combination of talent development, infrastructure support, and fintech initiatives in Hong Kong has provided a fertile ground for GRST to thrive and expand its operations. As the city continues to strengthen its I&T ecosystem, GRST is well‑positioned to contribute to the region's technological advancements and cement its position as a leading deep‑tech player in the global market.

Hong Kong's Opportunity to Bridge the Gap between Regulation and Market Need

Hong Kong's innovation ecosystem, bolstered by the government's focus on I&T capabilities, offers significant opportunities for deep‑tech companies. However, navigating the complex regulatory landscape, particularly regarding international battery standards, poses challenges. This situation presents an opportunity for Hong Kong to emerge as a leader in aligning regulatory requirements on safety and health with market needs.

Recognising this, GRST is partnering with key local industry players to understand both international and local regulatory demands and sector‑specific needs on battery manufacturing. This collaboration aims to create a comprehensive certification programme which can be scaled globally. It allows GRST to leverage the international presence of local companies and deploy GRST’s solutions in different markets, thereby amplifying the impact of their initiatives.

These certification services would benefit Hong Kong’s innovation landscape by providing startups and established companies a trusted pathway through regulations, lowering entry barriers and fostering technological innovation. This initiative could attract more deep‑tech and fintech firms to Hong Kong, reinforcing its status as a global innovation hub and a centre of excellence in compliance expertise.

As Hong Kong continues to solidify its position as an I&T hub, the city's ability to bridge the gap between regulation and market need through strategic certification services will be a key driver of its long‑term success. By leveraging its unique strengths and the expertise of its deep‑tech and fintech ecosystem, Hong Kong can seize this opportunity to cement its status as a premier destination for cutting‑edge innovation and technological advancement.