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Yesterday it was announced that Meta-materials (NASDAQ:MMAT) had entered into a memorandum of understanding with DuPont Teijin Movies and Mitsubishi Electric Europe. Today, the MMAT stock is gaining more than 10% at the time of writing.
The deal will see both parties use Meta’s PLASMAfusion technology to scale a “proprietary, high-volume, roll-to-roll manufacturing system for film-based coated copper current collectors.” The end product will help reduce battery weight and cost and improve range and safety compared to traditional Li-Ion batteries used in electric vehicles (EVs) and other products.
Copper is a highly coveted material in the construction of lithium-ion batteries. S&P Global predicts there could be a global metal deficit of between 1.6 and 9.9 million tonnes by 2035. Additionally, electric vehicles need 2.5 times more copper than internal combustion engines (ICE) Vehicles. The memorandum of understanding aims to reduce dependence on copper.
Meta President and CEO, George Palikaras, added, “Current Li-Ion battery innovations are primarily focused on extending battery range and life. With the current climate crisis and the increased demand for electric vehicles, a new generation Li-Ion battery is needed, which is more durable and safer. »
MMAT stock alert: what do new partnerships mean for meta-materials?
The memorandum of understanding will take the form of a multi-year project with several stages. The first stage will be a pilot-scale roll-to-roll system. Then the next step will be an industrial-scale mass production line, followed by the last step of “further development of the application to the production of semiconductor batteries”. Each company will bring different resources to the stages. For example, DuPoint will be in charge of polyester substrates, while Mitsubishi will provide automation technology and expertise.
As previously stated, Meta Materials will contribute its PLASMAfusion technology. The technology deposits thin layers of copper on the sides of a polyester substrate. This reduces the weight of the current collector by up to 80%. The lighter weight increases energy density and extends a vehicle’s range while limiting copper usage.
The press release did not disclose the financial terms of the memorandum of understanding. However, the agreement provides proof that the company’s technology is effective and sustainable with multiple use cases. DuPoint executive Dave Wall also called Meta Materials a “talented partner.”
Meta Materials has confirmed that it will release its third quarter results on November 10 after market close.
At the date of publication, Eddie Pan held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.