Oddly enough, it will likely turn out that batteries are the next big thing. It shouldn’t be so surprising given that the big idea here is really about the storability and transportability of energy to power the world.
The global market for lithium-ion batteries was valued at $108.4 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14.1% over the next seven years. In the U.S., the battery market was valued at $10.49 billion in 2019.
This is a clear revolutionary growth theme. And it is being driven primarily by the shift to electric vehicles. But there are many other use cases that fold into the same battery-driven revolution.
Demand for portable electronics, including LCD displays, smartphones, tablets, and wearable devices also play a major role in the flood of growth now anticipated almost universally among analysts.
One of the most interesting stocks set to sit at the heart of this explosive growth theme is KULR Technology Group Inc (NYSEAMERICAN:KULR), a company that manufactures and licenses next-generation carbon fiber thermal management technologies for batteries and electronic systems.
The central premise on offer here is to be found in the company’s proprietary technology for preventing heat-induced catastrophic damage in EV batteries. This includes the company’s two core products: its Passive Propagation Resistant (PPR) battery design (cooler and safer battery module or pack) and its Thermal Runaway Shield (TRS) (battery enclosure).
KULR has also recently solidified its IP protection moat, recently being granted its third full patent on its TRS technology in May 2021.
The technology behind these products was developed in partnership with NASA.
KULR has already built custom heat management technology for two NASA JPL space missions (Mars Perseverance Rover and the mission to put a human back on the Moon’s surface by 2025) and its tech is currently in use on the International Space Station. KULR has also already won over 30 NASA contracts, and has inked deals with the DoT and USAF.
Now the company is picking up additional momentum with the Department of Transportation.
KULR Technology Group Inc (NYSEAMERICAN:KULR) announced this week that it has received a special permit, its third in two months, from the U.S. Department of Transportation (DoT).
This latest permit authorizes commercial transportation of damaged, defective, or recalled (DDR) lithium-ion cells and batteries, or lithium metal cells contained in or packed with KULR’s proprietary Thermal Runaway Shield (TRS) packaging.
According to the company’s release, the granting of the recent DDR special permit marks a key strategic step for KULR as it continues to push its Thermal Runaway Shield as an integrated design solution providing total battery safety for more efficient battery systems, increased sustainability, and end of life battery management. The Company’s solutions have been proven by various government testing authorities to stop or mitigate the impacts of dangerous lithium-ion battery failures known as thermal runaway which can occur during transportation of batteries.
We would also note that the granting of KULR’s third special DoT permit, according to the release, validates the commercial and regulatory viability of its passive propagation resistant (PPR) solution. Previously, in October 2020, the Consumer Product Safety Commission reported KULR’s design solutions could stop fires and explosions in lithium-ion battery packs, and provided additional insights on the future of safe battery technology. In 2019, KULR provided NASA with a solution to protect laptop computer battery packs aboard the International Space Station (ISS).
“Damaged, defective, or recalled lithium-ion batteries can present tremendous safety risks to people, property, and the environment if they are improperly handled, stored or disposed of,” said Keith Cochran, KULR President & COO. “We live in an increasingly portable and digital society in which we routinely see rechargeable batteries or battery centric products suffer damage or defect which require a recall. We’ve seen it with children’s toys, scooters, laptops, mobile phones, online shopping, and of course electric vehicles. With further adoption of Li-ion technology, we believe there will be an ever-increasing need for KULR’s Thermal Runaway Shield (TRS) packaging. Our DDR special permit, along with our recently attained prototype battery special permit and recycling special permit, strategically establishes KULR as an end-to-end provider of safe battery shipping solutions, no matter the mode of transfer.”
Stocks related to the battery theme have been red hot over the past 2 years as the market tries to look around the corner. We have seen huge moves in names like FuelCell Energy Inc (NASDAQ:FCEL), BYD Company ADR (OTCMKTS:BYDDY), and Plug Power Inc (NASDAQ:PLUG).
We have also seen big moves in related names like Albemarle Corporation (NYSE:ALB), Blink Charging Co (NASDAQ:BLNK), and Nio Inc – ADR (NYSE:NIO), with Tesla Inc (NASDAQ:TSLA) being perhaps the poster boy in the group.
However, we haven’t seen the same retail investor spotlight fall on KULR Technology Group Inc (NYSEAMERICAN:KULR) despite its top-tier technology, high credibility, emerging momentum, and strong government contract support.
One explanation for this is likely that the stock has been trading on the OTC. This keeps institutional support at a minimum.
However, the company has recently been uplisted onto the NYSE American exchange. That opens the door to more traditional big-money potential as well as rich retail validation. It’s a “made” stock at this point. And we may see that play into valuation going forward, especially given the company’s robust credibility at the heart of such an indisputable growth theme.