KULR Technology emerges as leading provider of NASA-grade electronics and lithium-ion battery safety solutions

• Pioneer in thermal (cooling) management technology with its carbon fiber thermal interface material 
• Tapped by NASA for Mars Rover mission and safe-battery storage aboard International Space Station  
• Has developmental partnership with the advanced technology arm of racing team Andretti Autosport 

What the company does:  

KULR Technology Group Inc (OCTQB:KULR) develops, manufactures, and licenses next-generation carbon fiber thermal-management technologies for batteries and electronic systems. 

The San Diego-based company’s technology enables leading aerospace, electronics, E-mobility, energy storage, 5G infrastructure, electric vehicle, and drone manufacturers to make their products cooler, lighter, and safer for users and consumers.

It is a pioneer in thermal management technology and battery safety, built upon its carbon fiber thermal interface material. The material offers superior thermal conductivity and heat dissipation properties. It is also ultra-lightweight and flexible that it can fit most power or electronic configurations and was designed for space exploration and defense applications, where efficient cooling is paramount.

Simply put, KULR’s technology is all about keeping things cool and in order — so lithium-ion batteries or cells don’t overheat, catch fire, explode, and cause a catastrophic fire or worse — whether it’s aboard a spaceship to Mars, an electric vehicle racing in the desert, or inside a simple smartphone.

Underscoring this technology are two flagship products that standout — KULR’s Passive Propagation Resistant (PPR) battery design (cooler and safer battery module or pack) and Thermal Runaway Shield (TRS) (battery enclosure)

KULR’s carbon fiber technology acts as a firewall between batteries/cells to encapsulate the initial faulty cell (and subsequent fire, if it happens) while keeping the others around it cool and safe. But heat needs to be dissipated — so the removal of heat is important not only for performance but also for longevity as well, as consistently high temperatures over time can degrade batteries.

KULR developed its cooling technology with help from NASA for regulating extreme temperatures of sensitive components in space. The company has manufactured custom-designed heat sinks (channels heat away) and thermal management products for two NASA Jet Propulsion Laboratory space missions — Mars Perseverance Rover and the return to the Moon in 2025. Its technology also is being used on the International Space Station and the Mercury Messenger project.

In fact, the company has more than 30 contracts with NASA and deals with the Department of Transportation, US Air Force, and other government agencies in projects that are critical to the country’s national security interests. 

How it is doing:

KULR has had a busy first and second quarter in 2021, reporting a number of new initiatives and beefing ups its board.

At the start of January, KULR  announced that it had provided thermal management design services to a Tier-1 aerospace and defense technology manufacturer. The technology is designed to improve thermal subsystems that are needed to increase performance of hypersonic weapons.

Hypersonic strike systems are valued for their unique war-fighting aspects of range, speed, maneuverability, survivability and lethality, according to Mike White, assistant director of hypersonics at the Office of the Undersecretary of Defense for Research and Engineering.  A Congressional Research Services report released in December showed that the Pentagon’s FY2021 budget request for hypersonic-related research is $3.2 billion, up from $2.6 billion in the prior year’s request.

A month later, KULR revealed a partnership with the CSA Group to develop a new battery safety and testing procedure. The CSA Group (formerly the Canadian Standards Association) is a leading standards development organization and a global provider of testing and certification services. 

KULR’s passive propagation resistant (PPR) design solutions prevent dangerous cell-to-cell thermal runaway propagation. The company said its collaboration with CSA Group is the most recent of several alliances it has formed, to which it can apply its expertise and help shape the regulatory and industry standards for battery shipments. 

And then in March KULR announced that it had agreed on long-term technology and developmental partnership with Andretti Technologies (ATEC), the advanced technology arm of racing team Andretti Autosport. The company said the alliance will establish a thermal management testing and design platform for high-performance battery solutions with the highest safety ratings that will be adapted to the technical requirements of Andretti’s racing enterprise.

Both parties will also focus on co-developing and co-marketing motorsports’ battery and safety technologies to automotive partners for mass-market electric vehicle (EV) applications. KULR said the aim of the partnership is a transfer of technical knowledge from aerospace to the racetrack through ATEC affiliated programs.

Drawing upon KULR’s technical expertise in building lightweight, high-performance thermal management solutions for space exploration, including instruments for the International Space Station, the Mercury Messenger, and the Mars Rover, ATEC plans to implement new cooling technology, battery cell architecture, and testing methodologies for its high performance and high power applications within the global EV motorsports marketplace.

At the end of March, KULR also announced that it would be the official thermal management and battery safety provider to electric SUV extreme racing team Andretti United Extreme E ahead of the inaugural all-electric SUV Off-Road Racing Series which took place in April. The Andretti United Extreme E team won the Crazy Race semifinal and placed second overall in the inaugural Desert X Prix in Saudi Arabia on April 3-4, 2021.

The company is also targeting the drone industry by launching high-capacity lithium battery packs. The move is part of its overall strategy to go after markets that complement its established battery safety and thermal management products. KULR’s initial drone battery pack platform will service the high-performance market, retailing at between $450 and $550.

To underscore its growth plans, KULR is expanding its manufacturing presence to a new, larger facility in San Diego. The company plans to leverage it to commence commercialization of its product portfolio while also establishing new internal operational efficiencies. The new facility will also provide KULR’s partners with improved workspaces to facilitate collaboration and communication for growth.

Over in the boardroom, at the beginning of March 2021, KULR announced the appointment of veteran manufacturing and operations executive Keith Cochran as its president and chief operating officer. Cochran brings over 25 years of successful operations and business management experience, having previously served as senior vice president of Jabil Greenpoint’s global business units in Singapore.

The company also recently named former Jabil Inc. executive Antonio Martinez as its new vice president of operations. He’s responsible for managing day-to-day operations of the manufacturing department as well as supporting its strategic growth goals. 

In addition, KULR appointed Morio Kurosaki to its board as an independent director. Kurosaki, a seasoned executive and investor in Japan’s information technology industry, brings global go-to-market strategy and scalability. The company also appointed Dr Joanna Massey, a former senior vice president of corporate communications at Lions Gate Entertainment, as an independent director. 

As for its finances, in May the company posted first-quarter results which saw revenue jump by 439% year-over-year on the back of new orders for products and engineering services from military and aerospace customers. For the period ended March 31, 2021, the company generated revenue of $417,905, compared to $77,500 in 1Q 2020. 

KULR also closed the quarter with a cash balance of $6.2 million. In May, the company raised an additional $6.5 million via a preferred convertible financing agreement.

Inflection points:

• Second-quarter 2021 results
• Further development from technology partnership with Andretti Technologies
• More news on partnership with the CSA Group to develop a new battery safety standards

What the broker says:

Taglich Brothers initiated coverage of KULR in December 2020, arguing that the company “is well-positioned for strong growth” as the shift to EVs and 5G technology should fuel demand for its products.  

As a result, the New York-based analyst firm is started coverage with a Speculative Buy rating and a 12-month price target of $2.50 a share. The stock was then trading at around $1.36 a share. 

“The opportunities for the company’s products include industries such as electric motor vehicles that have become increasingly more reliant on Cloud computing, portability, and high-demand processing power,” wrote analyst John Nobile. 

“KULR’s high-performance thermal interface materials can also be used to accelerate 5G communications development due to their high thermal conductivity, light weight, and low contact pressure.” 

What the boss says:

“Our focus on expanding application areas for our technologies is showing results,” said KULR CEO Michael Mo in a recent statement.

“In April, we broadened our product offering by launching high-capacity lithium battery packs targeting the $127-billion commercial drone market. The announcement was a first step in KULR’s overall strategy of targeting adjacent markets complementary to our established battery safety and thermal management products. KULR intends to expand into additional e-mobility markets in the coming year.”

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Story by ProactiveInvestors