Looking Forward: KULR in 2025

With roughly six weeks left in 2024, I'm looking forward to KULR's future in this 2025 analysis.

KULR:

In 2025, KULR holds decent potential to cross into profitability. Factors include:

  • In Q3 2024 KULR increased record revenue and beat market predictions with an EPS of -$.01 per share. This was accomplished without their largest customer, similar to Q1 and Q2. That customer is expected to resume purchases in 2025 per KULR leadership. Given in Zack's recent report on KULR Technology that customer was identified as Viridi Parente, those resuming purchases seem highly likely as Viridi received two patents in 2024 that directly reference KULR products used within. This makes the resumption of purchases a when not if situation.
  • 2025 will be the first full year to have battery testing implemented in their Texas facility, with a projected revenue potential of $8-10M annually (or an avg of $2-2.5M per Q) in testing alone. Also, in 2025 KULR plans to incorporate two new environmental tests with a third planned for 2026.
  • Online sales will also enter their first full fiscal year in service through both KULR's online store and through their online partnership with Safeware Inc. placing accessibility for smaller orders of SafeX products in the hands of Fire Departments and small businesses that deal in li-ion battery storage. Potential sales increases may grow hand in hand with KULR's pitch and live demonstrations to insurance companies that are currently hard pressed to insure businesses that store li-ion battery products. This is also fueled by the 2024 announced partnership with UPS and Special Permits granted by the DoT.
  • With the rise of computing costs due to AI, KXV just showed that it can create a massive windfall potential if they lock in more data center customers after their first instance has proven a $1M minimum in licensing alone with a single customer.
  • KULR is prepared to bring KULR One Space and KULR One Guardian batteries into full production in 2025. KULR One Space is expected to be off the shelf 20793 compliant in Spring (roughly Q2 2025).

Battery Partners and Customers:

  • Partner company Amprius expects their new Battery Production Facility in Colorado to be operational in the first half of 2025. Recently, KULR and Amprius partnered up to develop reference designs to enhance battery and safety performance in advanced air mobility. The companies also presented their collaboration at the KULR open house where they showed optimism for Q1 prototyping and testing and to proceed further in Q2 for their eVTOL KULR One Air batteries.
  • In March KULR was contracted to provide K1DS testing solutions to a top Japanese multinational automaker to expedite design readiness to the automakers future electric vehicle buildout. After the summer investor presentation revealed Toyota (the only Japanese automaker revealed) among their EV automaker customers, it's a safe assumption to conclude this was their contract together. Why is this important to KULR in 2025, because that is when Toyota's North Carolina Battery Production Plant is set to begin operations.
  • What about Forge Nano - Forge Battery? Previously in September of 2023 KULR and Forge Nano entered into an MOU to combine K1DS with Forge Nano's Atomic Layer Deposition technology for an initially estimated $3.5-5M revenue opportunity (which company benefits most is unknown). Don't expect anything huge to come outside of a potential update in 2025 as Forge Battery's new Giga-factory isn't scheduled to start commercial production until 2026. In the meantime, Forge Nano has sent prototype high energy cells to existing customers and potential partners. They have also received an award of $100M from the DoE to upgrade their planned 1 GWh/yr factory into a 3GWh/yr factory. Additionally, KULR customer GM recently invested another $10M into Forge Nano. So, big potential is on the horizon, but not likely for 2025.

eVTOL:

  • Political affiliations aside, President-Elect Trump has vowed to put the pressure on regulators for Advanced Air Mobility policies to stay ahead of competing countries like China. Prior to his election the FAA created the new powered lift category for eVTOL aircraft in October. KULR's AAM/eVTOL partners and customers revealed in the recent investor presentation and Q3 ER include: Archer, BAE Systems, Beta, H55, Vertical, Wisk and battery cell partners Amprius and Molicel.
  • Archer plans for their commercial air-taxi services to launch 250 Midnight aircraft in 2025. In August they delivered their first Midnight aircraft to the U.S. Airforce, announced that their prospective order book sits at nearly $6B and announced a continuing relationship with automaker Stellantis of up to $400M. Stellantis is the company's largest shareholder with 17% of shares outstanding. Through a NASA Space Act Agreement Archer uses Molicel battery cells.
  • Joby plans to start commercial air taxi flights by late 2025. While Joby isn't directly a KULR customer, Toyota is, and Toyota holds roughly 20% ownership stake in Joby. Toyota and Joby have worked together to integrate the Toyota Production System with Toyota engineers working side by side with Joby since 2019. If the Toyota Production System now integrates K1DS then that would make Joby a potential 2nd party customer.

NASA Missions:

  • Intuitive Machines (LUNR) is set to launch their IM-2 in January of 2025. While Intuitive Machines is not a direct customer of KULR it's sister company, Axiom Space is (both co-founded by Kam Ghaffarian who sits as the Executive Chairman of the Board for both companies.) IM-3 is planned for Q4 2025. They are also in contention for the next Lunar Rover working with KULR customer Boeing.
  • Additional Lunar Rover contenders include Lunar Outpost who is partnered with KULR customers Lockheed Martin and General Motors; and Venturi Astrolab that is partnered with KULR customers Axiom for creation and SpaceX for delivery.
  • The NASA led Artemis II mission is scheduled for no earlier than September of 2025. This mission marks the first crewed flight moon mission since 1972.

Policies: (I'm attempting to stay as non-partisan as possible)

  • Until and unless revisions are made in the next administration, KULR and it's affiliate partners or customers can continue to take advantage of Biden policies including: the Bi-partisan Infrastructure Act, the Inflation Reduction Act and the Chips and Science Act.
  • The incoming administration is looking to de-regulate many things that may speed up some industries that KULR partakes in, including appointing Elon Musk as the head of the proposed new Department of Government Efficiency which aims to cut government spending.
  • As mentioned above, President-Elect Trump plans to push eVTOL policies to stay ahead of China.
  • Though analysts are now predicting a 75% chance of recession under the new administration, most of KULR's business is Military and Space related. Military budgets tend to stay largely untouched, and Elon himself has much to gain from the space program through his company SpaceX, a KULR customer.
  • The Setting Consumer Standards for Li-ion batteries Act (H.R. 1797 - S. 1008) has been stuck in limbo at the Senate with bi-partisan support after passing the House. It is likely, but not guaranteed to be pushed in the lame duck session of congress over the next six weeks, and has high potential to be one of the final laws that President Biden signs while in office.
  • Several key KULR customers have begun layoff's recently, including GM and Boeing, with some saying it's in prep for the incoming administrations proposed policies.

As far as politics go, it's a wait and see moment for KULR and friends, but otherwise 2025 looks bright with a chance of profitability.

~iggy