KULR Technology Group Inc (NYSE: KULR) develops and commercializes high-performance thermal management technologies for batteries, electronics, and other components across an array of battery-powered applications. As the global economy becomes increasingly electrified and connected, KULR is addressing the rising demand for cooler, lighter, and safer batteries, and electronic systems. Leveraging the company’s roots in developing breakthrough cooling solutions for NASA space missions and backed by a strong intellectual property portfolio, KULR provides customers with industry-leading battery safety technologies as well as cost-effective cooling technologies that outperform traditional solutions. The world’s leading aerospace, electronics, energy storage, 5G infrastructure, and electric vehicle manufacturers trust KULR to solve safety, reliability, and efficiency challenges in an ethical and environmentally sustainable manner. 

Active government initiatives propelled by industry and regulatory tailwinds are increasing demand for battery recycling and clean energy, resulting in an expanding total addressable market for KULR’s solutions. The Company’s disruptive technologies strive to fulfill an addressable $24 billion thermal management systems market (estimated based on market data projections published by Converged Markets stating that the thermal management systems market size was projected to grow from $11.1 billion in 2017 to $24.8 billion by 2025. KULR’s integrated design approach offers comprehensive solutions in thermal interface materials, lightweight heat exchangers, and protection against lithium-ion battery thermal runaway propagation. Its high-performance solutions can be designed to fit demanding configurations and applications. 

As companies and governments around the world pledge to meet net zero emissions over the next few decades, KULR is uniquely positioned to accelerate the adoption of clean energy solutions and sustainable products and facilitate the migration to a global circular economy. The Company’s goal is to provide total battery safety solutions for more efficient battery systems, increased sustainability, and end-of-life battery management, making KULR a key technology solutions provider in the migration to a global circular economy. 

 

*****BREAKING NEWS RELEASED YESTERDAY*****

 

KULR Thrived As Others Struggled To Survive

In fact, while others struggled to survive in 2021-22, KULR is proving it can thrive, with strategic investments resulting in the build-out of its holistic, total battery safety platform to provide customers with an extensive set of solutions to achieve battery sustainability within their respective ecosystems.

As noted, the initiatives are expected to provide multiple sources of income and allow KULR to expand its go-to-market efforts by upselling and cross-selling to new and existing customers the individual components of its comprehensive platform through a product sales or subscription model. In other words, KULR has created an innovative way to attract and keep customers for the long term. That means new clients become long-term revenue drivers that provide rapid revenue growth and sales visibility. Better yet, it’s an excellent sales model that can keep on giving. And from multiple sources.

Why and how? Because the versatility of KULR’s holistic platform provides speed and allowance to penetrate potentially lucrative untapped sectors and markets. Additionally, they’re already showing they can attract significant customer interest across several verticals, including energy storage, battery recycling, electric aviation, industrial and power tools equipment, and e-mobilities. All tolled, those markets present over 300 enterprise and government organizations that can be immediately added to the sales pipeline. For KULR, it’s a case where sales ambitions can translate to dollars in the bank.

Beating The Macro Issues To Ramp Sales

And that could happen faster than many think as the headwinds within the supply chain stabilize in the sectors KULR targets. There’s more to fuel the bullish argument. As macro-economic pressures ease, an expected result from a new spending bill, KULR is again ideally positioned to ramp sales volumes as they begin to monetize growing customer engagements over the coming quarters. Thus, with momentum in creating deals and making its legacy ones stronger, KULR could be in its best operating position ever to generate a significant increase in shareholder value. In other words, a higher share price could be imminent.

Based on management commentary, that’s likely. Remember, in addition to KULR selling the highest standard of battery safety technology that puts up to billions in the revenue-generating crosshairs from aerospace and defense companies, the momentum generated from developing other accretive platforms could put them as a leading provider and enabler of the circular electrification economy.

Keep in mind that Q2 sales may have been comparably flat, but that’s historical news. The critical takeaway is that guidance is decidedly bullish. Several deals prove the point, one with its recycling partner that provides KULR immediate and open access to commercial partners and customers after securing United Parcel Service (“UPS”) shipping certification. That certification allows for the shipment of batteries utilizing the KULR Safe Case products through UPS’ vast shipping network. It does more.

The permit also allows the United States Department of Transportation compliant “Safe Case” to be used as a safe and reusable shipping container for Li-Ion battery transportation up to 2.1KWh, providing KULR’s major recycling partner a safe shipping container that can handle batteries above 300Wh. Those wondering, these certifications aren’t easy to get.

More importantly, KULR can earn premium prices for services rendered, and the revenue-generating opportunity can be enormous, with billions of batteries needing to be disposed of. Again, that’s one significant opportunity. There’s plenty more.

New Licensing And Follow-On Deals

KULR also announced completing the licensing and starting the construction of its Fractional Thermal Runaway Calorimetry (FTRC). Further, they noted having multiple customer engagements already in queue and three purchase orders expected to close in September 2022. Accounting for those, Q3 could be a fuse to light a substantial end-of-year revenue rally. And that’s still not all.

KULR also secured four major commercial accounts for its Safe Case products, with deployment trials underway. Forecasts from that opportunity indicate several multi-million-dollar recurring commitments over the next 18 months are in the crosshairs. That adds to a follow-on order from leading aerospace and defense company Lockheed Martin (NYSE: LTM, $LTM) for its space-developed phase change material (PCM) heat sink technology. Yes, there’s still more.

KULR also highlighted the near-term potential of its biosensing solution for its Fortune 50 Metaverse customer. In its earnings commentary, KULR said its recently revised engineering design improves pliability, increases conductivity, and enhances softness to the skin. Also important, the next shipment to the customer is expected in late August 2022, with customer testing to occur shortly after that. Again, new revenues are in play.

Other near-term value drivers include benefitting from its partnership with E-One Moli Energy Corporation (“Molicel”) to advance KULR’s total battery safety and thermal management solutions strategy. Also adding value is the expected installation of a fully automated battery testing program with an initial processing capability of roughly 500,000 18650/21700 lithium-ion cells annually in support of NASA’s manned flight specification EP-WI-037.

That initiative and system installation is scheduled to conclude in Q3 2022, with full capability processing beginning in Q4 2022. Once completed, screened cell capacity will be allocated to NASA and the United States Department of Defense battery cell deployments, including internal requirements related to KULR’s qualified commercial cell deployments.

Right Things At The Right Time

The bottom line is simple to understand- KULR is doing the right things at the right time. Also easy to comprehend is that its well-timed initiatives are expected to boost revenues considerably as early as this quarter. It gets better. From a competitive perspective, KULR is distancing itself from others that may have an interest in poaching.

Actually, it may be hard to infringe on KULR’s technical turf, with an IP portfolio providing substantial competitive insulation and making the barriers of entry for others extremely high. Moreover, KULR’s commitment to developing a universal modular battery product by combining its PPR technology and CellCheck for E-mobility, enterprise energy storage, data center, and crypto-mining applications may be more than a way to earn diversified market share; IP could allow them to own the billion-dollar spaces they target.

Remember, there may be companies trying to do what KULR does on a singular basis. But, few, if any, can boast of solidifying its market presence and earning as significant a share in as many market applications as KULR. And by manufacturing and licensing next-generation carbon fiber thermal management technologies for batteries and electronic systems, partnering with NASA to create breakthrough cooling solutions for space missions, having a robust intellectual property portfolio enabling leading aerospace, electronics, energy storage, 5G infrastructure, and electric vehicle manufacturers to make their products cooler, lighter and safer for the consumer, it’s a position they will likely maintain.

Thus, is KULR a value investment opportunity too good to ignore? Facts and performance indicate yes. And with plenty of cash in the bank to support and grow its ongoing mission, KULR is doing more than checking all the right boxes. They are positioned better than ever to close a valuation disconnect, which for investors, makes consideration at recent prices a timely and compelling proposition.

Energy Storage 

The U.S. doubled its energy storage capacity in 2021 and is expected to increase 17x by 2030, according to Wood Mackenzie. Lithium-ion batteries are the dominant technology on the market for energy storage because of their cost and availability but do carry well documented safety risks. While rare, cell to cell thermal runaway in lithium-ion batteries can cause a fire or explosion. For example, an explosion at Arizona Public Service’s McMicken battery plant injured four emergency responders in 2019 and overheating caused the 1.2 GWh Moss Landing storage facility in California to go off-line. To reach net zero by mid-century will require an additional 245 GWh of battery capacity each year until 2030, but incidents of the like distill trust in battery technologies and threaten to slow the pace which is needed to achieve decarbonization goals. KULR’s passive propagation resistant (PPR) and thermal runaway shield (TRS) technologies prevent cell to cell thermal runaway propagation and inhibit fire and ejecta of a single cell from exiting the battery enclosure, making battery energy storage packs safe for homes, hospitals, schools, and universities, and more. KULR is partnering with leaders in the energy storage industry such as Volta Energy Products, the subsidiary of Buffalo NY based parent company, Viridi Parente, to increase deployments of safe, reliable, and durable energy storage safety systems to accelerate the broader energy transition. 

Battery Recycling and Management 

KULR-Tech Safe_Case provides a safe and cost-effective solution to commercially store and transport lithium batteries, which is increasing in frequency as supply chain challenges and ESG commitments necessitate battery recycling and end-of-lifecycle management. Whether shipping a single battery, a battery-powered device or a load shipment of batteries, KULR’s technology mitigates the impacts of cell-to-cell thermal runaway propagation and ensures a safe journey. KULR’s Thermal Runaway Shield (TRS) technology is trusted by NASA to ship and store astronauts’ laptop batteries on the International Space Station. In addition, KULR combines its Passive Propagation Resistant (PPR) solutions with its new CellCheck intelligent battery management system to extend battery life. The CellCheck modular battery management system platform is KULR’s AI-powered battery safety technology for e-mobility, energy storage and fleet applications. It captures real time and lifetime battery intelligence, sensing adverse electrical, environmental, and physical events to analyze and control for maximum battery safety, reliability, and performance. As commercial industries across the board face greater scrutiny to comply with ESG standards, KULR is serving a total addressable market for a circular economic model for batteries that will reach over $21 billion by 2025 (estimated based on market data projections published by Grand View Research, Inc. stating that the global battery recycling market size is expected to reach $21.04 billion by 2025). 

E-mobility 

KULR is supporting the shift to electrified transport by enabling safer, lighter, and faster charging lithium-ion batteries for electric vehicles and micro mobility solutions. KULR’s passive propagation resistant (PPR) battery pack solutions increase battery energy capacity while preventing thermal runaway events that can lead to hazardous explosions, helping the transportation industry to address growing public safety concerns around electric vehicles, electric aviation and micro-mobility markets. 

Vehicle technology advancements and EV range anxiety requires more battery capacity to expand the range and power of existing platforms while adding new, power-demanding components for advances such as 5G data networks. The additional strain on batteries increases the risk for overheating and serious failures and can damage sensitive chip architecture. In addition, overheating has been a key limiting factor for advancing fast charging battery technology. KULR’s carbon fiber thermal management technologies reduce the thermal resistance inside battery cells while increasing electrical conductivity to dissipate heat more efficiently to enable the safe deployment of fast charging batteries. With KULR, automotive OEMs and battery manufacturers can increase the energy capacity of battery cells so less cells are needed, making for lighter vehicles that drive further before needing to be charged. 

Aerospace/Defense 

KULR’s thermal management solutions enable the defense and aerospace industries to safely deploy electronic technologies that support critical missions and protect national security.Technology in this sector is developing at increasing rates – the space industry alone will be worth nearly $3 trillion in 30 years. The electronic devices being placed into aircrafts, satellites, and missiles are becoming ever smaller and more powerful. Lithium-ion batteries, which are already prone to overheating and propagation, are exposed to harsh thermal environments as well as shock and vibration during aerospace and defense operations. KULR has partnered with Lockheed Martin, Leidos and other prime contractors to develop and supply mission-critical technologies for hypersonic vehicles, high-power magnetic wave, and other defense systems. 

High-Powered Computing & 5G 

Demand for improved, cost-effective cooling solutions in the rapidly growing 5G and cloud computing industries is ever-increasing. KULR’s portfolio of thermal management solutions target air and liquid-cooling of high-performance computing applications such as crypto mining, cloud computing, AI, and AR/VR simulations to maximize performance, energy efficiency and safety. KULR’s proprietary carbon fiber-based suite of thermal interface materials leverage advanced carbon fiber based heatsink technology that offers customers highly customizable, lightweight, and cost-effective solutions with industrial-level reliability due to their high thermal conductivity, lightweight, and low contact pressure. 

New Battery Cell Development 

KULR started a research and development initiative using carbon fiber structures to produce battery cells with higher energy density and faster charging capabilities. Fast-charging will be the killer app for next-gen batteries. Right now, overheating is a key limiting factor in advancing fast-charging battery technology. There may be a way to solve that problem by using carbon fiber inside the battery cell to reduce thermal and electrical resistance which can dissipate heat more effectively. The R&D initiatives include thicker cathode with higher loading factor, silicon anode, lithium metal anode and solid-state electrolyte development. This is a long-term strategic development for KULR. 

Commercial Partnerships 

KULR has a long-term technology and developmental partnership with Andretti Technologies (ATEC), the advanced technology arm of racing team Andretti Autosport. 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 with the goal of transferring solutions to mass-market electric vehicle (EV) applications. 

New Facility and IT-Systems 

KULR relocated in October 2021 to a new facility located at 4863 Shawline St, San Diego, CA. The facility is 3 times larger than the previous facility with adequate room to support the Company’s new automated battery cell testing capability that will launch in Q322 as well as personnel growth. Additionally, the Company installed independently enclosed areas to support the machine shop, testing lab, battery lab, and Fiber Thermal Interface Material (“FTI”) manufacturing lab. KULR has implemented a 5S standard for the entire facility and will seek ISO 9001 certification in June 2022. 

KULR has engaged with Managed Solutions to enhance its IT infrastructure and improve all aspects of Cyber Security. As a sub-contractor for DOD programs, it was vital that KULR have state of the art IT systems and controls. The Company believes the best path based on the current scale of the company is to outsource this activity to a professional IT services organization. The result of this activity was an improvement of our NIST score of over 140 points. 

KULR Recent News:

KULR Receives Follow-On Phase Change Material Heat Sink Order from Lockheed Martin 

SAN DIEGO, June 29, Jun 29, 2022 (GLOBE NEWSWIRE via COMTEX) — SAN DIEGO, June 29, 2022 (GLOBE NEWSWIRE) — KULR Technology Group, Inc. (NYSE American: KULR) (the “Company” or “KULR”), a leading developer of next-generation lithium-ion battery safety and thermal management technologies, announced today it received a follow-on order for its space-developed phase change material (“PCM”) heat sink technology from leading aerospace and defense company Lockheed Martin Corporation (NYSE: LMT). 

Phase change material heat sink technology reduces system temperature excursions and extends both the life of key components within the thermal storage process. The solution is most useful for compact and high-performance devices that require bursts of computational power in short time intervals. KULR’s PCM heat sink technology is compact, reliable, and lightweight and has been utilized by leaders in the U.S. aerospace and defense industries. 

“Repeat business like this is a testament to our reliable engineering, testing, and design capabilities that meet the stringent requirements of long-range weapon systems,” said Keith Cochran, President & COO of KULR Technology Group, Inc. “Our many years of experience designing lightweight and durable heat sink technologies positions us well to capture additional share of the thermal design market for military precision strike weapons. Lockheed is a valuable customer to us, and we look forward to the continued partnership in providing them the best thermal management technologies for crucial aerospace, defense and other systems.” 

KULR Partners with E-One Moli Energy Corporation to Advance its Total Battery Safety and Thermal Management Solutions Strategy 

SAN DIEGO, June 30, Jun 30, 2022 (GLOBE NEWSWIRE via COMTEX) — SAN DIEGO, June 30, 2022 (GLOBE NEWSWIRE) — KULR Technology Group, Inc. (NYSE American: KULR) (the “Company” or “KULR”), a leading developer of next-generation lithium-ion (“Li-ion”) battery safety and thermal management technologies, placed an initial order for over 75 megawatt hours (“MWh”) of Li-ion battery cell capacity from Taiwan’s E-One Moli Energy Corporation (“Molicel”) to design and build battery applications with the highest safety ratings. As part of the strategic relationship, KULR would purchase over 700MWh of battery energy capacity to further accelerate its production and supply chain localization initiatives within North America. 

Molicel, a subsidiary of publicly traded Taiwan Cement(1101.TW), has been a leading innovator in the Li-ion battery industry for more than four decades and is focused on developing the high-power cylindrical cell segment as a top tier global supplier. The company has proven to be a world-class manufacturer of high-performance rechargeable Li-ion cells and battery pack products. Molicel was the first organization in the world to produce high-power Li-Ion cells for high discharge rate applications, producing the world’s first Li-Ion power tool system, and it supplied the first NASA Spacesuit Li-Ion battery on the STS-133 mission. 

“Partnering with a battery supplier that has the technical and manufacturing pedigree of Molicel is an important step for our growth strategy,” said KULR CEO Michael Mo. “This collaboration ensures that KULR has access to world-class Li-ion battery capacity – an increasingly scarce resource given today’s global supply chain challenges. As a total battery safety platform solution provider, we will incorporate our core technologies into battery pack design, testing and production to create the safest batteries for high value applications. This is an inflection point for KULR as it positions our thermal safety solutions platform to become better entrenched in the marketplace, ultimately providing us with an opportunity to optimize logistics and to more effectively capture full value for our shareholders. As we described earlier this year, we plan to continue investing in the localization of our production and supply chain to North America. Securing this Molicel battery cell supply accelerates our ability to provide total solutions to high value customer applications with revenue potential that could exceed $350 million.” 

Through the partnership with Molicel, KULR will apply a holistic and comprehensive solution to battery safety and thermal energy management with a suite of technologies including its: Passive Propagation Resistant (“PPR”) design and testing, Internal Short Circuit (“ISC”) trigger cells, Fractional Thermal Runaway Calorimeter (“FTRC”) testing and AI-powered CellCheck battery management system, to target the following markets: 

Aerospace and defense systems, such as CubeSat batteries meeting JSC 20793 safety requirements and the strategic battery reserve program initiated by NASA 

• Energy storage systems 
• High-performance electric vehicles and electric vertical take-off and landing (“eVOTL”) 
• Premium industrial and consumer electronics 

KULR Set to Join Russell Microcap(R) Index 

SAN DIEGO, June 06, Jun 06, 2022 (GLOBE NEWSWIRE via COMTEX) — SAN DIEGO, June 06, 2022 (GLOBE NEWSWIRE) — KULR Technology Group, Inc. (NYSE American: KULR) (the “Company” or “KULR”), a leading developer of next-generation lithium-ion battery safety and thermal management technologies, is set to join the Russell Microcap(R) Index at the conclusion of the 2022 Russell indexes annual reconstitution, effective after the US market opens on June 27, according to a preliminary list of additions posted June 3. 

Membership in the Russell Microcap(R) Index, which remains in place for one year, means automatic inclusion in the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes. 

“We look forward to joining the well-known Russell Microcap(R) Index, as it will enhance our equity profile and support our efforts in expanding our existing base of institutional investors,” said KULR CEO Michael Mo. “As we just pass the year mark from uplisting to the NYSE, it is truly an honor to be on track to achieve another encouraging milestone in our company’s history. With several exciting initiatives brewing in the pipeline, we look forward to further sharing the KULR story to the broader investment community.” 

KULR has a compelling chart setup; after trading as high as $3.81 in December the stock has come down and is currently forming a new base over $1.50. KULR has closed green the last 4 sessions in a row and continues green again today on a significant surge of trading volume.