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KULR Experiences Fast-Growing Demand for Next-Gen EV Battery Safety and Testing Solutions with Order from Top Japanese Automaker

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KULR Technology Group announced a contract with a top Japanese automaker to test and analyze high-energy battery cells for next-gen electric vehicles using KULR ONE Design Solutions (K1-DS). The comprehensive testing includes Fractional Thermal Runaway Calorimetry (FTRC), bomb calorimetry, and impingement zone mapping. This new service unit is expected to generate $8-$10 million in annual revenue starting in 2025, without extra investment in testing capabilities. The contract signals KULR's growth in the EV battery safety and testing market, particularly in the automotive sector, which is increasingly evaluating next-gen cells for better efficiency and faster charging times.

Positive
  • Secured contract with top Japanese automaker.
  • Projected $8-$10 million annual revenue from battery testing unit starting in 2025.
  • No additional investment needed for new testing capabilities.
  • High-margin, recurring revenue stream from design services.
  • Comprehensive and advanced battery safety testing protocols.
Negative
  • Revenue impact from new service unit won't be realized until 2025.
  • Dependence on the growing but competitive EV market.

The announcement of KULR Technology Group securing a significant contract with a top Japanese automaker is a promising development for the company, particularly given the size of the projected revenue from this contract. The expected annual revenue of $8 to $10 million starting in 2025 is notable, as it adds a substantial and recurring revenue stream to KULR's financial outlook. This aligns well with the current surge in demand for electric vehicles (EVs) and the continuous advancements in battery technology. KULR's strategic move to leverage its K1-DS platform for high-margin, recurring business is particularly beneficial in terms of profitability and market positioning.

The automotive sector's interest in KULR's comprehensive battery safety testing platform underscores the company's leadership and innovation in the battery safety space. With the International Energy Agency projecting that EVs will account for 35% of new vehicle sales by 2030, KULR is well-placed to capitalize on the growing EV market. It is important for investors to monitor how KULR manages this new influx of business and whether they can sustain the projected revenue without additional investment in testing capabilities.

The contract with a top Japanese automaker showcases KULR Technology Group's strong positioning within the global automotive sector, which is increasingly pivoting towards electric vehicles. This speaks volumes about the company's technological prowess and reliability, making it a trusted partner in the high-stakes EV market. The expanded use of the K1-DS platform for testing of next-gen battery cells provides KULR with a competitive edge as it addresses critical industry needs such as battery safety, improved efficiency and faster charging times.

This development is also reflective of broader industry trends where battery safety and performance are becoming paramount as EV adoption increases. Investors should note the strategic significance of KULR's expertise in Fractional Thermal Runaway Calorimetry (FTRC) and other advanced testing protocols, which could become industry benchmarks. As these technologies gain broader acceptance, KULR's market share and influence are likely to grow, reinforcing its leadership in sustainable energy management.

The integration of KULR's K1-DS platform and its advanced testing protocols, such as Fractional Thermal Runaway Calorimetry and bomb calorimetry, highlight the technical rigor and innovation KULR brings to battery safety. These tests provide deep insights into cell-level characteristics, which are critical for optimizing battery safety and performance. This level of detailed analysis is essential for next-generation EVs, where enhancing efficiency and safety are primary goals.

What stands out is KULR's ability to project this service as a standalone high-margin business without further investment in testing capabilities. This indicates not only the robustness of KULR's existing infrastructure but also the scalability of its services. For retail investors, understanding the technical superiority and the recurring nature of KULR's revenue from these services can provide confidence in the company's long-term growth potential within the rapidly evolving EV market.

 Battery Testing and Analysis Services Unit to Generate $8 Million to $10 Million Revenue Annually Starting in 2025

SAN DIEGO, May 29, 2024 (GLOBE NEWSWIRE) -- KULR Technology Group, Inc. (NYSE American: KULR) (the “Company” or “KULR”), a global leader in sustainable energy management, today announced it has secured a contract from a top Japanese multinational automaker (“Automaker”) for testing and analysis of high-energy battery cells intended for their next-generation electric vehicles. The Company will utilize its KULR ONE Design Solutions (K1-DS) platform to expedite design readiness for the Automaker’s future electric vehicle buildout.

KULR’s extensive spaceflight expertise and proprietary KULR ONE Design Solutions are integrated into its rigorous testing protocols, forming what KULR believes to be the world's most comprehensive battery safety testing platform. These tests encompass Fractional Thermal Runaway Calorimetry (“FTRC”), bomb calorimetry, and impingement zone mapping, providing unparalleled cell-level characterization and insights to optimize battery safety.

Originally, K1-DS was developed to introduce customers to KULR products, with the goal of transitioning to volume production. While this remains the Company’s core objective, over time KULR has expanded its testing services, projecting it to become an annual $8 to $10 million revenue standalone business starting in 2025, without additional investment in testing capabilities.

New K1-DS contracts are in progress as KULR recognizes design services as a high-margin, recurring revenue stream, with the automotive sector being a prime target for ongoing business. This demand is largely driven by electric vehicle manufacturers' continuous evaluation of next-generation cells for improved efficiency and faster charging times. According to last year’s International Energy Agency's projection, electric vehicles, including fully electric and plug-in hybrid models, are expected to account for 35 percent of new vehicle sales worldwide by 2030. The Company expects the FTRC to remain widely used across various industries for assessing both current and future cell technologies.

About KULR Technology Group Inc.
KULR Technology Group Inc. (NYSE American: KULR) is a leading energy management platform company offering proven solutions that play a critical role in accelerating the electrification of the circular economy. Leveraging a foundation in developing, manufacturing, and licensing next-generation carbon fiber thermal management technologies for batteries and electronic systems, KULR has evolved its holistic suite of products and services to enable its customers across disciplines to operate with efficiency and sustainability in mind. For more information, please visit www.kulrtechnology.com.

Safe Harbor Statement
This press release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. This release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our Form 10-K filed with the Securities and Exchange Commission on April 12, 2024, as may be amended or supplemented by other reports we file with the Securities and Exchange Commission from time to time. Forward-looking statements include statements regarding our expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” and “would” or similar words. All forecasts are provided by management in this release are based on information available at this time and management expects that internal projections and expectations may change over time. In addition, the forecasts are entirely on management’s best estimate of our future financial performance given our current contracts, current backlog of opportunities and conversations with new and existing customers about our products and services. We assume no obligation to update the information included in this press release, whether because of new information, future events or otherwise.

Investor Relations:
KULR Technology Group, Inc.
Phone: 858-866-8478 x 847
Email: ir@kulrtechnology.com


FAQ

What is KULR's new contract about?

KULR secured a contract to test and analyze high-energy battery cells for a top Japanese automaker's next-generation electric vehicles.

When will KULR's new service unit start generating revenue?

The battery testing and analysis services unit is expected to generate $8-$10 million annually starting in 2025.

What testing methods does KULR use for battery safety?

KULR uses Fractional Thermal Runaway Calorimetry (FTRC), bomb calorimetry, and impingement zone mapping.

What is KULR's K1-DS platform?

KULR ONE Design Solutions (K1-DS) is a platform for expediting design readiness and offers comprehensive battery safety testing.

Why is the automotive sector important for KULR?

The automotive sector is a prime target for KULR's high-margin, recurring revenue from design services, driven by demand for next-gen electric vehicle batteries.

How does KULR's expertise impact its services?

KULR integrates extensive spaceflight expertise into its K1-DS platform, offering advanced battery safety testing.

KULR Technology Group, Inc.

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