Teague Egan wanted to be at the center of renewable energy. As CEO of EnergyX, a startup focused on extracting lithium to be used in electric vehicles, that center is in Austin, where he’s tripling his team and moving into a site five times the current lab’s size this summer.
Starting off in the Bay Area in 2018, the company moved to Austin in June 2021. Egan says it's building up its battery team, field operations and scientists working on lithium extraction. But the big project the company has under its belt is a pilot program to extract lithium reserves in Bolivia, where a quarter of the world’s known lithium is.
Austonia toured the company's 6,000 square foot site near the Heritage Hills neighborhood in North Austin. The office area had a laid-back, humble setting. A small dog named Molly barks out from one of the offices, another worker is blow-drying their hair in the middle of the workday and there’s a company book club, which is currently reading "Make Your Bed" by William H. McRaven.
Egan holds a container from the nanomaterials library. (Andrea Guzmán)
But the lab area carries a different atmosphere. Before walking in, goggles are needed. Racks, known as the nanomaterials library, house almost 1,000 materials that are used to do experiments.
Especially important to its mission of helping to reduce CO2 emissions, the company works with samples of lithium in its raw form to refine it for batteries. If a series of in-field pilot plants are successful, it can be ready for market by early 2023. “I think they are motivated by that or else they wouldn’t be working at the company. It’s kind of a prerequisite in the interview process," Egan said.
Egan, who's 33, says he wants to foster creativity with more hires and expand their patent portfolio.
With a hint of sentimentality, he turns to the organization chart, which features about 30 current employees. With a hint of sentimentality, he gestures to his screen. “This used to be just this little thing,” Egan said.
In his office, Egan talks to Austonia about his average week, which includes meetings focused on batteries, business development, lithium separation and more. (Andrea Guzmán)
Having the home base in Austin was important to Egan. Being right by Tesla’s headquarters was key, he says, despite some people leaving the startup to work there. And observing that the major tech titans are here, like Google, Apple and Meta, Egan knew the talent pool would be strong. Venture capital is also plentiful.
“Pair that with the culture of the food and the music and the vibes, it’s just a really good place, I think, to start a company,” said Egan, who is toying with the idea of having a company presence at South by Southwest.
Plus, the University of Texas at Austin is an important partner. UT is where they licensed their first four initial patents. They’ve now expanded to 43.
The team has worked with John Goodenough, who invented the lithium-ion battery. At nearly 100 years old, his capacity at the company isn’t much, but his last Ph.D. student is the vice president of battery technology at Energy X and the company also employs another student who worked with Goodenough for a decade.
Egan is aware that he lacks experience, but when his father told him to make two lists: one with his top five passions and another with the five industries he thought would grow the fastest in the coming decades, renewable energy came out on both.
As EnergyX proceeds with its pilot in Bolivia, it will compete with seven others across the globe approved for the pilots whose results will determine access to commercial operations there.“I feel like we have a pretty good head start over some of the competition,” Egan said. "I wasn’t really focused on what they were doing. I’m trying to run my own race.”
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A theory that’s been swirling around lately is that the web as we know it is on its way out and something called Web3 will take over.
It’s hard to know what Web3 is without first understanding the original versions. The first web is the 90s Internet where people had their own random websites that didn’t link together, making it decentralized. In Web2, we saw the rise of Google, Facebook and other major players who configured standard ways for people to share and receive information.
Ethereum co-founder Gavin Wood and other blockchain developers say a decentralized version of the Internet, Web3, is on the way. Web3 can be thought of as synonymous with cryptocurrency, meaning it is based on the blockchain. Platforms and apps built on Web3 won’t be owned by a central gatekeeper, but rather by users. Those in the Austin crypto community believe to see a growing presence of Web3 in Austin.
Pujaa Rajan, an engineer at financial software company Stripe and adviser for startups, describes herself as a “digital nomad.” She has traveled all over from Hawaii to New York and San Francisco, looking for the crypto community in each place.
Having been in Austin for the past month, Rajan organized a Web3 meetup this week at Cosmic Coffee + Beer Garden in South Austin open to folks working in crypto or the crypto-curious. About 30 people showed up. "Compared to a lot of other cities that I went to, it is a lot more open and community-oriented here, which is what Web3 is all about,” she said.
Pujaa Rajan, an engineer at financial software company Stripe, organized a Web3 meetup in Austin during a visit. (Andrea Guzman/Austonia)
ATX DAO member Roberto Talamas, who stopped by the event, talked about the crypto group’s expansion. Web3, in Talamas’ view, expands on the previous versions which allowed people to read, then read and write. Now, he says, people can read, write and own. To Talamas, blockchain technology has powered that ownership aspect, and it can be utilized through groups like a DAO, a group that pools together capital and goes on to make investments or take on blockchain-based projects.
“The ecosystem of work with (Web3) companies here in Austin is still relatively small,” Talamas said. “And that’s one of those things that we’re trying to deal with at ATX DAO is to do all the advocacy work needed to make Austin the best Web3 city.”
Part of that community, however, has gotten a bad rep for being “crypto bros.” Rajan acknowledged that Web3 involves both finance and technology, which are fields women have historically been excluded from. But, she says the decentralization aspect creates a clean slate and a new means to form groups. “I feel like we can kind of take back the power or create a world for ourselves,” Rajan said.
The meetup at Cosmic brought together crypto users to talk about the prospects of Web3. (Andrea Guzmán/Austonia)
Meetup attendee Jonathan Hillis also talked about the idea that Web3 creates an opportunity to start over and how this could be something that grows in Austin. Born and raised in the capital city, Hills has left his Bay Area Web2 Instacart job behind to live in a cabin outside Dripping Springs last year. He and his wife, along with a group of internet friends formed a DAO called Cabin, and he's now writing on the Web3 version of Medium, known as Mirror.
When it comes to the state of Web3, four cities stand out. “The dam broke in Covid,” Hillis said. “Everybody no longer had to live in the Bay Area for tech.”
San Francisco is still rooted in Web2 traits with Big Tech and software as a service venture. New York is financial technology. Miami is another major player. But with Austin, Hillis sees a lot of potential.
“Austin is great at being a place for independent online creators of many types—musicians, but also artists,” Hillis said. “What excites me about Web3 is the opportunities for putting creators at more of the center of the value capture.”
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Once a bargain-hunter's paradise, Austin's reputation as a cheaper California seems to be dissipating. But does money have more value in Austin when compared to other U.S. metros?
For Carson Stanch, who moved to Austin from Brooklyn, New York, to be near family, Austin's lower cost of living was just an added bonus. According to the latest data from the U.S. Bureau of Economic Analysis, a $100 bill is worth $98.20 in Austin when compared to the national average in 2020, while it's worth just $84.53 in New York.
Houston native Carson Stanch moved from Brooklyn, New York to Austin just before the pandemic. (Carson Stanch)
Stanch soon realized she was a trendsetter—or perhaps a fortune teller—as the pandemic hit a few months after her move. No longer willing to spend extra money on their more expensive apartments, Stanch said many of her friends and other New Yorkers left the city amid COVID lockdowns.
"It's so expensive to live there (and) all of the reasons why you live in New York, you couldn't really do anymore," Stanch said.
Garrett Watson, a senior policy analyst with the Tax Foundation who wrote a 2018 report on the value of $100 in U.S. metros, told Austonia the report factors in the costs of goods and services with residents' incomes and compares them to the national average. The result is price parity, a number that varies drastically across the country—for instance, a $100 bill won't get you near as far in Austin as it would in more rural parts of the Hill Country.
While a Ben Franklin note was worth $4 more in New York in 2020 when compared to 2018, a $100 bill decreased by $1.60 in value in Austin. Austin's cost of living also saw the 12th-highest increase among U.S. metros from the 2010 to 2020 census.
And as the pandemic's nationwide housing boom gained extra momentum in Austin, peaking at a median home price of $575,000 in June 2021, Watson said the value of $100 could have dropped even further.
"There's just been a chronic hunger for building houses on the coasts and in certain cities in the heartland," Watson said. "Especially this year, we're seeing more and more discussion about that in Austin, and so that is a big, big factor."
Price parity bleeds into other factors as well—in San Francisco, where the value of $100 sits at $82.63, residents are nearly 18% poorer than their higher incomes suggest. But with higher incomes than the U.S. average, they may find themselves more flush with cash when moving to a cheaper city like Austin.
Many out-of-towners have used that extra change to make housing offers much higher than the asking price, Redfin chief economist Daryl Fairweather told Fox7 Austin.
"All those migrants are bringing with them high-paying jobs who are used to much more expensive housing and they’re willing to pull out all the stops to win these homes and move to Austin," Fairweather said.
But Austin is catching up to those traditional hotspots: the area was predicted to be the most expensive metro outside of the Golden State by the end of 2021.
In just two years, Stanch said she's seen some signs.
"I feel like I look around certain areas of Austin (and) they do feel more similar to downtown Brooklyn," Stanch said. "Some businesses I see might tend to cater to folks who have a little more income."
I cannot believe there’s a Hermès (an Hermès?) store opening around the corner from where I live. Oy vey. The scrappy, cheap, charmingly dusty locals-only South Congress of yore is receding into the past so very quickly. 😭 pic.twitter.com/sUHxI4pX8F
— Cari Marshall (@CariMarshallTX) August 3, 2021
So why not move to, say, Florence, Alabama, where money is almost 20% more valuable?
Watson said the difference comes down to the value of amenities—something the study can't track.
"Part of the value in New York City is all the amenities that you're near, the value of Broadway, the value of being able to get food delivered to your door," Watson said. "So that may be reflected in people's willingness to pay higher prices... there's a lot of really great reasons why people may want to be in Austin from an identity perspective that you can't get in other parts of Texas."
In Austin, tech salaries rose 5% from 2020-2021 as big-name corporations like Oracle and Tesla—alongside Tesla's billionaire owner Elon Musk—flocked to the nation's new "boomtown." With an ever-increasing job market, eclectic culture and reputation as one of the world's best cities for move-ins, Austin's appeal might still offset its price.
But for Stanch and many others, there may still come a time when price wins over location.
"If I was to the point where homebuying was more important than being near friends and family, then I would move to get the home," Stanch said. "I think that's kind of part of my plan."