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KULR Technology Stock Rises As Deals With Andretti Racing And Global Business Giants Earn Investor Attention ($KULR)

KULR Technology Stock Rises As Deals With Andretti Racing And Global Business Giants Earn Investor Attention ($KULR)

KULR Technology (NYSE: KULR) and its stock are heating up. And it's no accident. The company announced that Marco Andretti, the third-generation NTT INDYCAR SERIES driver from the legendary Andretti Family, will represent KULR at various events and by driving the No. 98 KULR Technology Honda for the 2023 Indianapolis 500®. That news sent KULR shares roughly 20% higher. But while an impressive update, it wasn't the only one inspiring investor interest. 

Following that announcement, KULR said it received a production prototype order for KULR SafeCase, its reusable, safe, and high-energy battery transportation and storage solution. That order came from an unnamed but described as "a top-tier power tool manufacturer." They defined them further, saying that this specific power-tool manufacturer is a leader in sustainability and safety within the industrial tool and household hardware sectors, and an active participant in many initiatives around lithium-ion battery safety, transportation, education, and recycling. Hence, like its deal in the metaverse space with another unknown but said to be a global business leader, this one, too, could lead to significant add-on contracts.

By the way, making deals and not disclosing names is common when a company is trying to protect proprietary interests. And because KULR technology is allowing client companies to gain a competitive edge from its battery-safety technology, investors shouldn't point to the non-disclosure as vague. Well, vague in name, yes, but not substance. Just as important, clients are turning to KULR solutions for a reason. They are best-in-class and, in some cases, the only type of battery safety technology validated to use in consumer and industrial products, protecting assets ranging in price from single dollars to billion of them. 

SafeCase Technology Earning Interest 

In the spotlight again is its SafeCase solution. And KULR didn't only announce a new deal; they announced why clients are turning to KULR technology. Foremost, KULR is unique in its ability to leverage special permits from the U.S. Department of Transportation for the safe shipping of lithium-ion batteries up to 2.5 kilowatt-hours. The competitive distinction is enhanced by SafeCase ability to provide both standard and customized case sizes incorporating a reusable, sustainable, and cost-effective design.

But more than design advantages, the SafeCase provides cost-effective warehouse storage for fire safety and transportation and is tailored to meet needs in the commercial lithium-ion battery markets. Those include consumer products like power tools and industrial applications targeting just about any product using lithium-ion batteries. 

Notably, KULR's patented, NASA-proven Thermal Runaway Shield technology makes them the only company in the world with a product approved by the DoT for storage and transport of lithium-ion batteries that can manage up to a capacity of 2.5 kWh for recycled, prototype, and damaged, defective and recalled batteries. That's a big deal and a potentially massive value driver, near and long term. In multiple sectors, too. 

Deals With Industry-Best People And Companies

In addition to working with the Andretti team in E.V. motorsports racing, KULR's SafeCase and energy management platform also targets battery safety applications in the consumer electric vehicle markets. Those would include opportunities from high-growth companies like Tesla (NYSE: TSLA), Ford (NYSE: F), Nio (NYSE: NIO), and Rivian (NASDAQ: RIVN), as well as the more emerging players that need lithium-ion power to accelerate their growth initiatives.

Millions of batteries will be used in the E.V. sector alone. And it's a safe bet that as more attention is given to potentially catastrophic events in these cars, mandates will be placed to protect consumer and industrial markets. Face it, the government likes to get involved. And with lithium-ion battery power now fueling phones, automobiles, tools, and even supporting trips to space, safety advocates will likely be successful in having safety measures embedded as part of product development. 

That could mean that an already significant battery safety solutions and global energy storage market expected to reach $554 billion by 2035 will likely get even larger. That market is already heating up, and proactive interest has made it one of the hottest sectors in the market. And with KULR technology a potentially integral ingredient to keeping more powerful and denser batter packs safe in both consumer and industrial markets, KULR's growth trajectory may steepen. If so, expect its share price to follow. Higher revenues often translate to higher stock prices. 

News Is Generating Interest

That's happening. As noted, KULR stock has been higher by over 20% since the start of the month. And that move comes on the heels of news, not hype. That's understandable, noting that savvy investors are bidding shares higher understanding that KULR's battery-safety solutions target demand from those needing to maximize efficiency without losing function or malfunctioning when using Lithium-ion batteries. Their interest buys into precisely what KULR does. And not just in motorsports but also in maritime, defense, aerospace, and recycling markets. 

Revenue-generating opportunities from each are more than targeted; they are in the crosshairs. Better still, from an investor's perspective, within reach of providing KULR potentially exponential income growth from a suite of innovative technology providing essential thermal management and safety system technologies to just about every sector in business. 

That includes government agencies, including NASA and the U.S. Department of Defense, two agencies already on the KULR client list. Indeed, having a share price under two dollars while doing business with some of the world's most powerful and influential companies and agencies is a disconnect. But stock prices are often imperfect, and whether considered over or underpriced, they seldom tell the truth. In KULR's case, it's the latter. But that can change quickly, with KULR's intrinsic and inherent strengths supporting higher prices. 

A Best-In-Class KULR Portfolio

Many are apparent from KULR's ability and the opportunity to serve surging demand from its highly configurable thermal interface materials. Especially its lightweight heat exchangers and monitoring systems ensure that lithium-ion batteries and the machinery they power can operate efficiently while minimizing the risk of overheating or explosions. Additional market applications include KULR's technologies providing a means for the safe transportation and disposal of these batteries, opening the door to revenue opportunities across the nation from the billions of batteries needed to be disposed of and transported in a compliant way. 

Other deals are vale drivers, too. And some extend out of this atmosphere, with KULR's technologies currently used by NASA to transport and store laptop batteries on the International Space Station. Protecting those billion-dollar assets validates that its Thermal Runaway Shield (TRS) effectively prevents battery explosions by protecting against the scorching heat encountered during its deployment to space. NASA has also utilized KULR's carbon fiber thermal management technologies in the Mars Perseverance Rover and their 2017 NICER mission to mitigate the risk of excessive cooling. Earning the repeat business of NASA to protect multi-billion dollar assets is a testament to the importance and efficiency of KULR's technologies. There's plenty more to like.

Other offerings include the previously mentioned Safe Case based on its NASA-proven Thermal Runaway Shield technology. And it's not only used in rockets. The Safe Case has a presence on earth as well, with it being the product to date approved by the U.S. Department of Transportation for storing and transporting 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 maximizing a current agreement with Heritage Battery Recycling to supply this technology to safely allow nationwide battery collection operations. As billions of lithium-ion batteries await regulatory-compliant disposal, expect analysts to further appraise the revenue-generating potential and model their impact on KULR financials. 

Acquisitions are also contributing to KULR's value proposition.

Accretive Acquisitions Expand Market Reach

KULR recently announced acquiring VibeTech and the subsequent launch of KULR VIBE. KULR VIBE is an AI-driven vibration reduction solution that addresses energy loss from excessive machinery vibration. Excessive vibration is a plague to modern advanced machinery that not only results in the diminished efficiency and lifespan of the asset but can also increase the risk of operator injury. Utilizing a vast database of vibration signatures, the KULR VIBE suite of technologies uses proprietary sensor processes and state-of-the-art learning algorithms to improve machinery balance and forecast component failure. Its A.I. learning algorithms can locate areas where excessive vibrations cause energy loss, potentially preventing performance and maintenance issues before they become dangerous. 

Accretive to its other technology applications, VIBE technology can meet demand from customers across the motorsports industry, aviation, transportation, renewable energy (wind), and manufacturing sectors. It also serves industrial, performance racing, and autonomous aerial (drone) applications with precise balancing solutions by successfully pinpointing areas where excess vibrations cause a loss of energy that can lead to system malfunctions, weakened performance, and maintenance issues. In other words, many businesses need what KULR sells. 

Significant Contributions To Private Sector Interests

And not just government agencies. KULR's thermal management and battery safety technologies have also captured the attention of private sector companies. They've inked deals with global business behemoths like Lockheed Martin (NYSE: LMT), which just upped its order from KULR for its Phase Change Materials (PCM) heat sink technology. This carbon fiber-infused heat sink uses PCM technology to either provide or absorb heat, extending the life of crucial components used by Lockheed Martin. If all goes well during evaluations, the next contract with LMT could be massive. And it could add to other deals accruing value.

Another private-sector contract that could drive near-term value is KULR's deal with Volta Energy Products, a subsidiary of Viridi Parente Inc. The agreement calls for a multi-million-dollar deployment order of KULR's Passive Propagation Resistant solution suite over three years. Volta raised $95 million to support the creation of "fail-safe" lithium-ion battery technology and plans to market 750 to 1,000 battery storage units in 2022 using KULR's technology. Notably, the companies anticipate that this number could increase to 50,000 units by the end of 2023. If the maximum number is shipped, KULR could reasonably expect revenues of $40 million within the following year. But if pricing power holds, this figure could rise to $80 million.

Still, these deals represent a tiny part of the KULR value proposition. Empowering battery safety in supercars to space stations, and everything in between, KULR is undeniably operating within lucrative sectors with high barriers to entry. Notably, the energy storage and thermal management markets will only become more critical to implement as global green-energy initiatives and regulations bring these products further into the mainstream. Thus, Litchfield Hills Research analyst's target of $7 by 2023 may prove conservative. 

A Warranted Value-Based Investment Consideration

But keep in mind that Litchfield's $7 price target was made before several new deals were announced. Since then, KULR has expanded its business presence to include revenue-generating opportunities in the drone, maritime safety applications, enterprise energy storage, and crypto-mining applications sectors. Each has a high demand for energy storage and thermal management solutions, an opportunity in KULR's crosshairs. 

That's not all. Diversifying interests further, KULR announced its developments within the metaverse sector, where the company is collaborating with a Fortune 50 client, speculation is that it's Meta (NASDAQ: META), to develop a novel biosensing solution.  KULR described its work on the project as a revised engineering design that improves flexibility, increases conductivity, and enhances softness to the touch of their industry-leading client's product. Opportunities presented by the metaverse are quickly capturing the eye of tech giants worldwide, and KULR's early support of a related product could bring substantial interest following a full announcement. Forecasts are for the metaverse sector to reach trillions of dollars in opportunities before the end of the next decade. 

Hence, is KULR and its stock presenting a value proposition too good to ignore? With a portfolio of innovative thermal management and battery safety technologies providing a solid base for the company to capitalize on and maximize opportunities, most answer yes. Undoubtedly, clients like NASA, Lockheed Martin, Leidos (NASDAQ: LDOS), and Volta Energy are using KULR technology for a reason. It's worthy of protecting multi-billion assets and programs. 

Thus, while KULR can benefit from establishing itself prominently in many sectors, investors can also score a win. After all, with KULR technology critical to some of the most important global industries, sectors, and green-energy initiatives, it's likely that the stock's path of least resistance is higher. Appreciably and deservedly so.

 

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