Micro-Cap Eyes Massive Consumer Markets After Transformational 2019

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Monday, June 22, 2020

Controlling battery heat and managing the potentially explosive condition that can occur as a result of thermal runaway is a critical challenge facing the electronics and more specifically battery industries.  Over the last 30 years, the KULR Technology (OTCQB:KULR) team has developed and delivered its carbon fiber thermal management technology to NASA and other organizations for space and defense applications, including the Mars Perserverance Rover and the NICER telescope on the International Space Station.  KULR’s technologies have been tested and proven to be effective under some of the harshest environmental conditions.

Now, the company is expanding its portfolio by making its battery safety and thermal solution technologies available to the mass commercial marketplace for uses in battery design and safety, shipping/logistics, cloud computing, electric vehicles, energy storage and more.

With customers such as NASA, Boeing (NYSE:BA), Lockheed Martin (NYSE:LMT) Ball Aerospace (a unit of Ball Corp. (NYSE:BLL)) and Leidos (NYSE:LDOS) in tow, KULR has substantially widened its revenue potential by addressing these new multi-billion-dollar markets.

Consider today’s world and the reality that we don’t go more than a few minutes without touching something with a Lithium-ion battery in it. To that point, the Li-ion battery market is growing at an 18% CAGR and expected to reach $100 billion by 2024. KULR’s suite of battery products make batteries cooler and safer:

• KULR was awarded an exclusive license from the National Renewable Energy Laboratory to market and distribute its Internal Short Circuit (ISC) device that provides electronics and battery manufacturers a more reliable way to study battery cell failures so that the industry can improve battery technology.
• NASA licensed Fractional Thermal Runaway Calorimeter device that is also used for testing purposes, which provides the industry with a way to measure the amount of heat released during thermal runaway
• KULR’s patented Thermal Runaway Shield (“TRS”) technology can be used inside a battery module/pack or as a battery enclosure packaging material capable of passively preventing thermal runaway propagation. As mentioned in our previous write-up, this is the technology that was used by NASA and Leidos (NYSE: LDOS) to transport to and store batteries on the International Space Station and licensed to Americase, a leader in providing packaging solutions for batteries in the battery recall and return space. 

What’s Driving Li-ion Usage?

Aside from smartphones and the electronics people use on a daily basis, everyone is well aware of the burgeoning EV space thanks to the growing popularity of Tesla (NASDAQ:TSLA) and the new trucks of Nikola (NASDAQ:NKLA) that Wall Street is rallying around.  The EV space is predicted to be a driving force for lithium consumption over the next decade displacing the internal combustion engine.  People have become more environmentally conscious, EV technology continues to improve, and manufacturing costs are coming down benefiting the consumer. 

Another market segment most may not be aware of is the rapidly growing energy storage market in the utility (electric grid) space that is forecasted to more than double by 2023 according to the U.S. Energy Information Administration.  Energy storage facilities are used by the utilities to store excess electricity and/or solar energy. The growth in this industry is also a highly significant factor in lithium consumption.

The Industry Demands Safer Energy Storage (battery) Technologies

The massive growth forecasts in the current and emerging technologies that utilize lithium-ion batteries will undoubtedly result in more incidents of battery fires and potential for disastrous events that impact public safety.  There is no doubt that the lithium battery industry needs improved technologies that improve battery safety. KULR Technology provides key battery safety solutions that meet the growing demands of the industry. 

If you’ve never seen a battery suddenly catch fire, check out this KULR demonstration and you’ll quickly understand why the technology is so important whether a battery is used in space or being carried around in your pocket. This video demonstrates how KULR technology contains an explosion/fire propagation and explains why the likes of NASA and Americase trust it and companies and organizations continue to approach KULR given the Company’s comprehensive and effective approach to battery safety.

2019 was a transformational year for KULR as it started dipping its toes into consumer markets. The entry was met with interest as evidenced by the company growing its customer base from 13 in 2018 to 28 last year. With a lot of the basic blocking and tackling completed last year, CEO Michael Mo says he expects 2020 and 2021 to be growth years.

Leveraging its legacy aerospace clients while expanding into the new markets, Mo is targeting being cashflow breakeven by the fourth quarter.

Stock research firm Litchfield Hills Research LLC saw significant upside from KULR’s share price of around $1.00 at the time coverage was initiated on Thursday last week. Litchfield gave a “Buy” rating with a target price of $5.00 per share. KULR closed Monday’s trading at $2.54 per share.

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