Aspen Aerogels is developing thermal barrier aerogels to tackle thermal runaway in lithium-ion batteries. Image: ESRG.
Aspen Aerogels has raised US$150 million in financing from a Koch family investment firm to help grow its aerogel thermal barrier technology division, including new products which prevent thermal runaway in batteries.
Koch Strategic Platforms (KSP) has agreed to buy convertible notes in Aspen worth US$100 million maturing in 2027 and shares in the firm worth US$50 million by the end of Q1 this year/early Q2, the companies announced 17 February.
It comes eight months after a separate US$75 million investment by KSP in Aspen and will help the company pursue ‘aerogel thermal barrier growth opportunities’, the announcement said.
Aspen Aerogels is a stock-listed manufacturing company specialising in aerogels, which are synthetic gel-derived materials for insulation and cooling that have a variety of applications.
The material is made by replacing the liquid component of a gel with air, resulting in a low density, low thermal conductivity material that feels like polystyrene. It is much more efficient than regular insulation but high prices have limited it to a few niche industries.
To-date it has mainly sold to the energy infrastructure sector, primarily fossil fuels, and building materials markets but has been developing thermal barrier aerogels to tackle thermal runaway in lithium-ion batteries.
But this new segment did not materially contribute to revenues last year which totalled US$121 million, as per its 2021 annual results. All revenue was attributed to ‘energy infrastructure’ yet the company aims for a whopping 75% of revenues in 2025 to be from thermal barrier technology.
Shortly before issuing its press release regarding the investment from KSP, the company said it will construct an advanced manufacturing facility in Bulloch County, Georgia, US, tripling its aerogel production capacity.
Aspen intends to invest at least US$325 million in building the plant, adding to an existing facility in Rhode Island. The 500,000 square foot site, on 90 acres of land in Bulloch County’s Southern Gateway Commerce Park, is expected to open up late next year. Georgia is set to become a key hub for the US electric vehicle (EV) battery sector, with battery maker SK Innovation building two gigafactories in the state and a recent announcement that the US’ largest battery recycling plant is being built there by Ascend Elements (previously known as Battery Resourcers).
Solution tweaked for cell-to-cell applications
Aspen’s CEO Donald R. Young indicated the money raised from KSP will go towards growing and expanding the thermal barrier division.
“Aspen’s strategy is to leverage our aerogel technology platform into high-value, high-growth markets, driven by our ‘PyroThin’ thermal barriers which address thermal runaway in electric vehicles and by our energy infrastructure products which promote resource efficiency, asset resiliency and safety in traditional and emerging energy settings,” he said.
“KSP’s additional investment will support our growth and allow us to address additional high-value applications in ESG driven markets, including battery materials, hydrogen energy, carbon capture, and filtration, among others, further solidifying our position as a technology leader in sustainability.”
It claimed “US$1 billion of potential revenue from current customers” for electric vehicle (EV) thermal barriers alone, although as mentioned before it posted very little revenue from this last year.
The company says on its website that PyroThin is ‘optimised for helping to mitigate thermal runaway in EV and energy storage systems (ESS).’ It has tweaked its solution for cell-to-cell barrier applications and those for modules and battery packs.
It claims the market opportunity from 2021-2030 for its products in the EV thermal barriers space is US$30 billion, US$37 billion for ‘EV Battery Materials’ and US$31 billion for ‘Energy Infrastructure’.
KSP’s parent company Koch Industries is known for its background in fossil fuels industries and has been accused by groups including Greenpeace of funding climate change-sceptic propaganda. More recently, it and its many group companies have diversified to be involved in a large number of different industry areas today, from chemicals and biofuels to polymers and fibres, software and data analytics and many others.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
