Hong Kong-based startup Amazinc Energy is developing water-based zinc batteries aimed at replacing lead-acid backup systems used in AI data centers and critical infrastructure, as lithium battery fire risks continue to raise concerns.

The company, spun out of research at City University of Hong Kong, recently secured funding under Hong Kong’s second batch of the RAISe+ Scheme to scale its aqueous zinc battery technology and build a production line capable of 1 GWh annual capacity within three years.

The batteries are designed for large-scale energy storage and uninterruptible power supply (UPS) systems that support data centers, financial institutions, hospitals, and commercial facilities.

Unlike lithium-ion batteries that use flammable organic electrolytes, Amazinc’s system uses zinc metal and a water-based electrolyte, reducing fire and explosion risks while also lowering material costs and environmental impact.

Fighting battery fires

Lead-acid batteries still dominate nearly 90 percent of UPS backup systems globally, but their low power density often forces operators to install oversized battery banks to meet sudden power demand. According to the company, this increases costs, limits flexibility, and complicates maintenance.

Lithium-ion systems offer higher energy density but continue to face scrutiny over overheating and thermal runaway incidents, especially as AI data centers scale rapidly and demand larger backup power systems.

To improve zinc battery performance, the research team is working on several engineering upgrades targeting one of the technology’s biggest challenges: zinc dendrite formation. Dendrites are needle-like metal structures that can damage batteries and trigger short circuits over repeated charging cycles.

The team said it is optimizing zinc anode structures and surface treatments to suppress dendrite growth and extend battery lifespan. Researchers are also developing protective cathode coatings to improve dissolution resistance and cycling stability.

A two-layer composite separator is also being designed to improve safety and battery performance. Beyond material improvements, the company is refining manufacturing processes such as slurry coating, roll pressing, electrode cutting, tab welding, electrode winding, and vacuum electrolyte filling to improve battery consistency, mechanical strength, and cycle life.

Scaling data-center power

The company is also developing dedicated battery management, power control, and thermal management systems specifically for zinc-based batteries. These systems are intended to monitor battery conditions in real time and prevent overheating during large-scale operation.

Amazinc already operates automated production facilities in mainland China for pilot manufacturing and testing of backup power batteries.

The startup is also integrating with Huasu Technology, a Chinese supplier of battery management systems and data-center infrastructure solutions, to accelerate commercial deployment.

“Our goal is to develop a new generation of battery technology that is both safe and efficient,” said Dr Tang Zijie.

“The aqueous zine-based battery system eliminates fire risks, reduces costs, and can operate safely and reliably in large-scale energy storage and backup power applications.”