A Case Where One Part is Worth More Than the Whole is an Investment Gem
Thursday, July 28, 2022
Lithium-ion batteries have revolutionized the world, but they are still only in their infancy when it comes to what they will do to support a greener, interconnected planet. Production capacity is booming as battery manufacturers look to keep up with demand across the entire Li-ion spectrum from smartphones and toys to electric tractor trailers to 5G infrastructure. Speaking of tractor trailers, shipping of Li-ion batteries is a unique investment opportunity with a limited number of companies atop the food chain.
The leader list includes KULR Technology Group, Inc.
, a company differentiated by a portfolio of carbon fiber thermal management solutions and shipping certifications from transport regulators that no one else in the industry has. (NYSE American: KULR)
Make no mistake about it, laws are strict, very strict, about how Li-ion batteries can be shipped. The long-and-short of it is that Li-ion batteries need to maintain a relatively narrow internal temperature range to be safe and stable. If those levels are violated, for whatever reason (damage, ambient temperature, etc.), a battery’s cell can ignite, which in turn heats and ignites the adjacent cell and so on, a phenomenon known as thermal runaway.
According to the Federal Aviation Administration (FAA), a lithium battery fire happened on average every 10 days during shipments during 2006 and January 2020.
Every 10 days. And that was before manufacturing, and subsequently shipping, started turning straight upward. Moreover, today’s batteries are becoming increasingly energy dense, further exacerbating explosion risks. Consider that the number of battery factories under construction from 2015-2020 soared from 4 to 181. That expansion underscores estimates that the global Li-ion battery market with grow from $41.1 billion in 2021 to $116.6 billion in 2030, growing at 12.3% annually across that span.
KULR, a company built on its expertise in Li-ion testing and safety, is in a sweet spot for the burgeoning Li-ion market. Part of KULR’s technology was developed in collaboration with aerospace and defense juggernauts like NASA (for space missions) and Lockheed Martin
. While still a core competency of KULR’s business, its new commercial portfolio has vaulted the company to the position as a key opinion leader and provider of safety technology for transporting Li-ion batteries today. (NYSE: LMT)
KULR’s product bag of cutting-edge heat sinks, passive propagation resistant (PPR) solutions, thermal runaway shields, cathodes, and more have tremendous value to countless industries, including aerospace, defense, and consumer goods. That said, it’s arguable that the shipping opportunities alone could account for the entire $154 million market capitalization of KULR.
It's not like manufacturers can just toss skid loads of Li-ion batteries on trucks, boats, rail, or planes to get them from point A to point B. These batteries are highly regulated as a hazardous material under the U.S. Department of Transportation's (DOT) Hazardous Materials Regulations (officially HMR; 49 C.F.R., Parts 171-180).
After the fire and loss of life on a vessel off the coast of California in September 2019, the U.S.
Coast Guard is implementing new fire safety requirements on boats, including handling of rechargeable batteries. Again, KULR fits the billing to solve the Coast Guard’s new mandates.
The KULR-tech Safe Case is the only such product approved by the U.S. DOT for storage and transport of lithium-ion batteries that can manage up to a capacity of 2.1 kWh for recycled, prototype and DDR (damaged, defective and recall) batteries. KULR is also the only company with a special permit from the U.S. DOT authorizing the transport of prototype lithium cells and batteries aboard cargo aircrafts.
KULR has agreements in hand to serve the shipping market with Americase, a leader in shipping damaged, defective, and recalled batteries that handled the Samsung Galaxy Note 7 recall in 2016, and Heritage Battery Recycling, a North American giant servicing 100,000+ battery collection locations.
Only about 15% above its 52-week low, it is time to look at KULR for its Li-ion battery shipping technology, not to mention its tech that has safety applications throughout every bit of the battery’s life cycle, a claim no other company can make.
KULR Technology Group, Inc. (NYSE American: KULR) Full Corporate Write-Up:
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