Israeli based battery technology company UltraCharge Limited (ASX: UTR) has announced an early conclusion of its research agreement with Nanyang Technological University (NTU), following a technical review of its recently acquired internal capabilities which found these internal capabilities now outreach those offered by NTU.
According to the company, the cessation of this agreement will have no material impact on current research and UltraCharge’s anode technology development plans, but it will provide it with greater technical flexibility and an immediate positive impact on cashflow, with $1 million of savings projected.
Under the new development model, UltraCharge will continue to undertake its own development and maintains its exclusive rights to the patented anode technology, with the leading developer of the patented anode technology, Prof. Chen Xiaodong from NTU, remaining as a member of the company’s Advisory Board.
UltraCharge’s original agreement with NTU was for the provision of research and development services in Singapore, in addition to the Company’s already established development capacity in its Israeli based facility.
Commenting on the cessation of the NTU agreement, UltraCharge CEO, Mr Kobi Ben-Shabat, said “We take this opportunity to thank NTU for their contribution. They have been instrumental to our fast progress to date.
“I am confident that UltraCharge’s internal research team has the capacity to deliver on our world class research programs.
“The new research model provides immediate cost benefits to the Company and delivers better value for shareholders. I am also pleased to advise of our plan to apply for new funding opportunities with the Israeli government and look forward to updating the market on the outcome”.
The newly acquired UltraCharge Israeli research team have made significant progress in the development of its anode technology, reproducing its titanium dioxide nanotube technology and producing test batches, which the company has stated will be ready to be shipped to end-users shortly. This outstanding progress made the provision of additional research services by NTU redundant.
As a result of the Company’s upgraded scope and capabilities, its potential collaboration with NTU for a conditional grant offer by the Singapore Israel Industrial R&D Foundation (SIIRD) (announced in June 2017) will not proceed.
UltraCharge stated that ending the NTU research agreement has resulted in a cash positive impact on the Company, providing an immediate saving of $1million.
Furthermore, it better positions UltraCharge to actively pursue funding opportunities through the Israeli government. A funding submission for the same value as the SIIRD grant submitted last week.
The UltraCharge technology being developed by UltraCharge will replace graphite in anodes (negative pole) with a nanotube gel material made from titanium dioxide, in lithium batteries.
According to the company this has the potential to revolutionise the market for lithium batteries by producing a battery that is safe, has a longer lifetime and is fast charging.
UltraCharge has established a laboratory facility in Israel to conduct nanotube synthesis and fabrication of the nanotube anode, and is discussing supply options with end users in the global battery market.