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Future Direction Smoltek

Future direction of Smoltek

Did you miss the webinar with Smoltek’s CEO, Håkan Persson, where he talked about Smoltek’s future direction? No worries! We have your back covered. This summarizes the highlights of Håkan’s presentation.

On June 4, Smol­tek held a webin­ar on the company’s future. The speak­er was Håkan Persson, CEO of Smol­tek, and the mod­er­at­or was Albin Kjell­berg, known in Sweden for his talks, pod­casts, and tips on stock, sav­ings, and funds. This blog post sum­mar­izes Håkan Persson’s speech. In a fol­low-up blog post, we will report on all the ques­tions raised after the present­a­tion and Håkan Persson’s answers.

Amazing technology and significant potential

Smol­tek is a com­pany with revolu­tion­ary tech­no­logy and enorm­ous poten­tial. Accord­ing to Håkan Persson, Smol­tek has the most sig­ni­fic­ant poten­tial of all the com­pan­ies he has worked with. The company’s tech­no­logy is very rel­ev­ant in today’s tech­no­logy devel­op­ment, which requires high­er per­form­ance and smal­ler, cheap­er, and more effi­cient com­pon­ents. Smoltek’s tech­no­logy can meet these demands through innov­at­ive and dis­rupt­ive solutions.

Brief on Smoltek

Foun­ded in 2005, Smol­tek works with nan­o­tech­no­logy based on 20 years of research at Chalmers Uni­ver­sity of Tech­no­logy in Gothen­burg. The com­pany was lis­ted on Spot­light in 2018. Smol­tek aims to solve advanced mater­i­al engin­eer­ing prob­lems with its pro­pri­et­ary tech­no­logy, Smol­GROW. This tech­no­logy cre­ates a three-dimen­sion­al sur­face struc­ture by con­trolling the growth of car­bon nan­ofibers. This provides a lar­ger act­ive sur­face for elec­tric­al and chem­ic­al pro­cesses, which can be used in vari­ous applic­a­tion areas.

Business model

Smoltek’s busi­ness mod­el is based on an incub­at­or mod­el where busi­ness oppor­tun­it­ies based on the core tech­no­logy Smol­GROW are iden­ti­fied and developed with part­ners into mar­ket-ready com­pan­ies. Smol­tek makes money by licens­ing the tech­no­logy and selling the subsidiaries.

The potential sale of assets or entire subsidiaries

Smol­tek has recently announced that it is explor­ing the pos­sib­il­ity of selling all or part of its sub­si­di­ar­ies Smol­tek Semi and Smol­tek Hydro­gen, or their tech­no­logy, to high­light the value of the com­pany and ensure con­tin­ued growth. There is a large gap between the con­fid­ence of the stock mar­ket and the value that the board and man­age­ment see in the com­pany. They have begun to reach out to poten­tial stake­hold­ers to max­im­ize share­hold­er value.

New issue of shares

To ensure a struc­tured pro­cess and to con­tin­ue the devel­op­ment, Smol­tek is con­duct­ing a rights issue. The sub­scrip­tion price is set at SEK 0.45 per share, which can provide the com­pany with SEK 26 mil­lion before expenses. The issue is sub­ject to a min­im­um sub­scrip­tion of 80 per­cent. Approx­im­ately 50 per­cent of the issue is ini­tially under­writ­ten by sub­scrip­tions and guar­an­tees from investors who have fol­lowed the com­pany over time.

Why invest in Smoltek

Smol­tek is an innov­at­ive deep-tech com­pany with great poten­tial in two busi­ness areas: semi­con­duct­ors and hydro­gen. The com­pany has an exper­i­enced man­age­ment team and board of dir­ect­ors and tar­gets volume pro­duc­tion between 2025 and 2027. The tech­no­logy plat­form has the poten­tial to expand into many oth­er applic­a­tion areas. Smol­tek has cre­ated much value in recent years that it can cap­it­al­ize on.

Two business areas

Smol­tek focuses on semi­con­duct­ors and hydro­gen. In semi­con­duct­ors, it devel­ops ultra-thin capa­cit­ors for applic­a­tion pro­cesses in mobile phones and oth­er advanced elec­tron­ic com­pon­ents. In hydro­gen, the com­pany is devel­op­ing high-per­form­ance cell mater­i­als for cheap­er and more effi­cient pro­duc­tion of fossil-free hydrogen.

Semiconductor industry

After this intro­duc­tion, Håkan Persson goes into each busi­ness area to explain its poten­tial. He star­ted with Smol­tek Semi – the sub­si­di­ary that serves the semi­con­duct­or industry.

The con­tinu­ous devel­op­ment of more and more tran­sist­ors on chips requires new, thin, and advanced capa­cit­ors. Smoltek’s tech­no­logy meets these needs by cre­at­ing high capa­cit­ance dens­ity while main­tain­ing per­form­ance, solv­ing mini­atur­iz­a­tion prob­lems, and improv­ing the func­tion­al­ity of mod­ern semiconductors.

Why YAGEO stopped negotiations

Before con­tinu­ing, Håkan Persson addressed the ele­phant in the room. Nego­ti­ations with YAGEO were sus­pen­ded due to their intern­al cir­cum­stances and pri­or­it­ies, not dis­trust of Smoltek’s tech­no­logy. YAGEO still sees the poten­tial of tech­no­logy and may return to col­lab­or­a­tion if its con­di­tions change.

Robert S. Wil­loughby, dir­ect­or of YAGEO’s Mul­tilay­er Ceram­ic Capa­cit­or Divi­sion, explains:” We believe in the poten­tial of Smoltek’s Car­bon Nan­ofiber tech­no­logy to pro­duce Sil­ic­on capa­cit­ors. How­ever, after a thor­ough eval­u­ation, we regret to con­clude that the tim­ing is not right for us to make fur­ther invest­ments cur­rently. Nev­er­the­less, we remain open to revis­it­ing the decision if con­di­tions change. We are still con­fid­ent that Smoltek’s innov­at­ive tech­no­logy will provide com­mer­cial­ized products that deliv­er dis­rupt­ive cap­ab­il­it­ies com­pared to the cur­rent products on the market.”

YAGEO may return

The decision to break off nego­ti­ations was based on intern­al pri­or­it­ies. YAGEO still wants to become a tech­no­logy pro­vider and is inter­ested in Smoltek’s tech­no­logy. Smol­tek will now approach more play­ers in the mar­ket as exclus­iv­ity agree­ments with YAGEO no longer bind it.

New generation of capacitors required

The mar­ket requires a new gen­er­a­tion of capa­cit­ors with high capa­cit­ance dens­ity, and Smoltek’s tech­no­logy can meet these require­ments. Mul­tilay­er Ceram­ic Capa­cit­ors (MLCC) can­not meet the new require­ments, which gives Smoltek’s CNF-MIM capa­cit­ors a unique position.

Existing option

The exist­ing option to meet these needs is sil­ic­on deep trench. It is developed in col­lab­or­a­tion between Apple and TSMC, cre­at­ing intel­lec­tu­al prop­erty and com­pet­it­ive chal­lenges for oth­er play­ers in the mar­ket. Smol­tek offers a more com­pet­it­ive solu­tion by adding mater­i­al to the sub­strate, which provides high capa­cit­ance and is robust, rather than etch­ing mater­i­al away from the sub­strate, which lim­its capa­cit­ance and is fra­gile. Smol­tek achieves per-micro­met­er capa­cit­ance levels on par with the best cur­rently avail­able. With our next gen­er­a­tion, Gen 1, Smoltek’s CNF MIM capa­cit­ors will have a sig­ni­fic­ant increase in capacitance.

Cost-effective alternative

Smoltek’s CNF-MIM capa­cit­ors enable high­er per­form­ance and are a cost-effect­ive altern­at­ive to sil­ic­on deep trench. The tech­no­logy is com­pat­ible with stand­ard CMOS man­u­fac­tur­ing pro­cesses and can be used by exist­ing con­tract manufacturers.

Possible auction

Smol­tek sees an oppor­tun­ity to cre­ate an auc­tion situ­ation around its tech­no­logy by re-enga­ging with YAGEO and oth­er poten­tial part­ners. The com­pany is also work­ing on soft fund­ing through par­ti­cip­a­tion in EU-related projects.

Summary about Smoltek Semi

Smol­tek Semi offers a com­pet­it­ive altern­at­ive to mar­ket-lead­ing tech­no­lo­gies for future mini­atur­iz­a­tion and high capa­cit­ance dens­ity needs. In 2024, the focus will be on increas­ing capa­cit­ance dens­ity and deliv­er­ing pro­to­types to part­ners for eval­u­ation. There are sig­ni­fic­ant com­mer­cial oppor­tun­it­ies for Smol­tek and a poten­tial partner.

Smoltek Hydrogen

Håkan Persson switches gears and talks about Smol­tek Hydro­gen – the sub­si­di­ary that serves the hydro­gen industry.

Smol­tek Hydro­gen is devel­op­ing a new type of cell mater­i­al for elec­tro­lyz­ers that can scale up the pro­duc­tion of fossil-free hydro­gen. This is neces­sary to com­bat cli­mate change.

Huge market

PEM elec­tro­lyz­ers are essen­tial for har­ness­ing energy from inter­mit­tent green sources such as sol­ar and wind. They match capa­city to energy avail­ab­il­ity, lower­ing the cost of pro­du­cing green hydro­gen. Fore­casts show a sharp hockey stick increase as the need for this tech­no­logy is urgent and widespread.

Iridium – the Achilles heel of fossil-free hydrogen

PEM elec­tro­lyz­ers require iridi­um, an extremely rare and expens­ive pre­cious met­al. Today, iridi­um costs about € 150,000 per kilo­gram, but it is expec­ted to reach € 700,000 per kilo­gram by 2030. Cur­rent tech­no­logy, which mixes iridi­um into ink on the mem­brane, is inef­fi­cient. The solu­tion is to place iridi­um on a sub­strate in con­tact with the mem­brane, which requires 10–30 times more sur­face area.

95 % less iridium

Smoltek’s solu­tion mul­ti­plies the sur­face area in con­tact with the mem­brane, pro­du­cing the same amount of hydro­gen with sig­ni­fic­antly less iridi­um. This reduces the need for iridi­um and lowers pro­duc­tion costs. A suc­cess­ful thou­sand-hour test shows a 90 per­cent reduc­tion in demand. In the lab, we have achieved a 95 per­cent reduction.

Saves 10 billion SEK

It is reas­on­able to expect that Smoltek’s cell mater­i­al will reach a mar­ket share of 30% by 2030, which means pro­du­cing 200,000 square meters of cell mater­i­al. This would save SEK 10 bil­lion in elec­tro­lyz­er pro­duc­tion costs, cre­at­ing a strong busi­ness case for an indus­tri­al partner.

Next step

Smol­tek has proven its tech­no­logy and know how to  pro­duce the mater­i­al in large quant­it­ies. The next step is to find a part­ner to indus­tri­al­ize the solu­tion and bring it to market.

Summary about Smoltek Hydrogen

Smol­tek Hydro­gen offers a cost-effect­ive solu­tion to reduce the need for iridi­um in the pro­duc­tion of green hydro­gen. The com­pany has sol­id pat­ents and part­ner­ships with glob­al lead­ers. The mar­ket is grow­ing rap­idly, and Smol­tek is well-posi­tioned to cap­it­al­ize on this growth.

Invest in Smoltek

Smol­tek has cre­ated much value not reflec­ted in today’s mar­ket cap­it­al­iz­a­tion. The com­pany has both the tech­no­logy and the com­pet­ence to real­ize its poten­tial. It is an excit­ing invest­ment oppor­tun­ity for both the short and long term.

The end

This was the sum­mary of Håkan Persson’s speech. You can watch the entire speech on You­Tube. And don’t miss the next blog post, which details the ques­tions from the audi­ence and Håkan Persson’s answers.

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