Smoltek publishes operational update on the company’s continued activities within industrialization and new innovation areas
This press release is an English version of the previously published Swedish version, which has interpretive precedence.
Smoltek Nanotech Holding AB (“Smoltek”) announces that the company, after a completed change in the management team and subsequent initial strategy work, now is able to elaborate on the next step in Smoltek’s ongoing activities within industrialization and innovation in line with the direction set forth in connection with the directed issue of 80 MSEK that was conducted in October 2020. During the rest of 2021, Smoltek will focus on two main areas: industrialization of the company’s carbon fibre based capacitors (CNF-MIM) and development and collaborations in the electrolyzer segment. A strengthening of the company’s internal resources and investments will support these activities.
Today, Smoltek is running its development projects in two group companies: Smoltek Semi, which is focusing on applications for the semiconductor industry (capacitors), and Smoltek Innovation, which is focusing on development in new application areas such as energy storage, energy conversion (electrolyzers) and applications in the biotechnology sector (bioelectrodes).
“Smoltek has excellent potential to achieve important milestones in 2021 on the path towards full-scale production of ultrathin capacitors based on our unique and high-performing carbon nano technology. We also see very promising opportunities in the new electrolyzer segment, and here we are aiming to sign a collaboration agreement with a partner that already has large-scale industrial manufacturing,” says Marie Landfors, Smoltek’s interim CEO.
A more detailed update per group company, as well as on the continued strengthening of the company’s industrial knowledge and development capacity, follows below.
The ongoing work related to the extended evaluation license is continuing according to plan, and here the company aims to progress and sign an agreement with a customer for the development of a commercial product. The company has previously communicated that its plan is to progress from evaluation licenses to production licenses. A production license covers the right to produce, but in order to be able to begin production there is a need for an extended period of industrialization in collaboration with a customer/partner.
In 2021, Smoltek has intensified its internal work to industrialize the CNF-MIM technology in collaboration with several international contract manufacturers. Within the framework of these efforts, the company has identified a supply chain and related production processes with the potential to be scaled up to cost-effective production of CNF-MIM capacitors in high volumes. The target product for which this production line is aimed for is ultrathin capacitors for applications in processors for mobile phones. The production line under development also has the potential to, with slight modifications, deliver other types of capacitors for applications where low losses in combination with high capacitance density and miniaturization are important requirements, such as for example 5G applications and high performance computing (HPC).
Smoltek is also studying the advantages of conducting the industrialization work on its own. This would open up a product-based business model for discrete capacitors (specific components) as a complement to the company’s license-based business model. The company also sees increased opportunities to keep knowhow related to the core business (carbon nanostructures) if the work to industrialize the CNF-MIM technology for discrete capacitors is being done within Smoltek.
After promising internal technical evaluations, Smoltek has decided that this group company’s main focus in 2021 will be the electrolyzer segment. Electrolyzers are being utilized in the production of hydrogen gas, which is used for example during carbon dioxide neutral steel manufacturing, an area where multibillion SEK investments have been presented in Sweden and in other parts of the world recently. In 2021, Smoltek aims to complete technical proof-of-concept for cell components based on carbon nano fibers, and to initiate a development collaboration with a large-scale manufacturer of electrolyzers or its components.
Strengthening of the company’s industrial knowledge and development capacity
Smoltek will continue to substantially strengthen the company’s organization in the two group companies Smoltek Semi and Smoltek Innovation during the rest of 2021. For Smoltek Semi, expanded and partly new skillsets are needed to be able to conduct deepened collaborations with partners in process technology equipment and production, and in Smoltek Innovation there is a need for a general strengthening of the company’s industrial knowledge and resources to be able to match a possible industrial manufacturing partner.
The costs of all of the activities described that Smoltek will now conduct in 2021 are covered by the financing that was secured in October 2020. The company has a strong technological and financial position, and it has a very positive view on its possibilities to achieve further progress within its focus areas in 2021 and beyond. Within the work related to identifying and signing agreements with relevant partners, Smoltek will utilize its collaboration with DC Advisory, a leading global financial advisor with expertise in the industrial transactions field.
Marie Landfors concludes: “Naturally, we have extensive work ahead of us when it comes to develop and expand our organization to be able to handle a more industrial focus. The whole Smoltek team, myself included, is working hard to progress with the development of the company, and now that we have set clear guidelines for 2021, I will be able to be more active in my communication with our stakeholders. I will for example present the company and answer questions from participants at Aktiespararna’s digital event on May 17.”
Smoltek is a global company that develops process technology and concepts for applications based on carbon nanotechnology to solve advanced materials engineering problems in several industrial sectors. The company protects its unique technology through an extensive and expanding patent portfolio consisting of around 100 applied for patents, of which today 65 have been granted. Smoltek's share is listed on the Spotlight Stock Market in Stockholm, Sweden under the short name SMOL.