Yesterday, it was announced that Meta Materials (NASDAQ:MMAT) had entered into a memorandum of understanding (MOU) with DuPont Teijin Films and Mitsubishi Electric Europe. Today, MMAT stock is gaining more than 10% at the time of writing.
The agreement will see the two parties utilize 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 contribute toward lower battery weight and cost and improve range and safety when compared to traditional Li-Ion batteries used in electric vehicles (EVs) and other products.
Copper is a heavily coveted material in building lithium-ion batteries. S&P Global predicts that there may be a global shortfall of the metal between 1.6 and 9.9 million tons by 2035. In addition, EVs need 2.5x more copper than internal combustion engine (ICE) vehicles. The MOU seeks to reduce the dependence on copper.
Meta President and CEO George Palikaras added: “Current Li-Ion battery innovations focus mainly on extending battery range and life span. With today’s climate crisis and the increased demand for Electric Vehicles, a next-generation Li-Ion battery is required that is more sustainable and safer.”
MMAT Stock Alert: What Do New Partnerships Mean for Meta Materials?
The MOU will take the form of a multi-year project with several stages. The first stage will be a pilot-scale roll-to-roll system. Afterward, the next stage will be an industrial-scale mass production line, followed by the last stage of “further development of the application to the production of solid-state batteries.” Each company will contribute different resources to the stages. For example, DuPont will be in charge of polyester substrates, while Mitsubishi will provide automation technology and expertise.
As stated earlier, 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 the range of a vehicle while limiting copper use.
The press release did not disclose the financial terms of the MOU. However, the agreement provides proof that the company’s technology is efficient and sustainable with several use cases. DuPont executive Dave Wall also characterized Meta Materials as a “talented partner.”
Meta Materials has confirmed that it will report third-quarter earnings on Nov. 10 after the market close.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.