An Electrifying Development Expected to Drive Growth



KEY POINTS
  • Aspen Aerogels believes that it is the global leader in aerogel technology with applications in the electric vehicle, sustainable building material, and energy infrastructure markets.
  • Aspen’s aerogel technology platform is proprietary and protected by 145 issued patents, with an additional 114 pending, in US and foreign jurisdictions.
  • Aspen believes it can double its revenues every 24 months, reaching $450 million by 2025 at 40% plus CAGR between 2021 and 2025E. By the end of 2023, it targets $225 million in revenue and a 30% gross margin.
  • To capture the EV market, Aspen has developed PyroThin™ to impede thermal runaway in electric vehicles. It has also developed carbon aerogel battery materials to boost the performance of lithium-ion batteries.
  • The fast-growing EV market is creating new growth drivers for the company, with a combined market opportunity per annum of $67 billion in EV thermal barriers and battery materials.
  • The company has secured a multiyear contract worth a potential $1 billion of revenue this decade with a US auto company to supply thermal runaway material, and the company expects additional OEM wins.
  • Management believes its COVID-19-impacted energy infrastructure business has bottomed and is poised for a recovery principally in the LNG, petrochemical, and refinery markets.

CATALYST MONITOR

  • Accelerating thermal barrier revenue in 2021 associated with the launch of 2022 model year EVs.
  • Milestone announcements being made towards commercial launch of its battery materials in 2023.
  • New EV OEM platform wins for the company’s PyroThin™ materials to diversify the customer base.
  • Additional momentum in energy infrastructure would absorb plant capacity short-term and should improve margins and cash flow.

CHARTING THE PATH

Aspen Aerogels believes that it is the global leader in aerogel technology with applications in the electric vehicle, sustainable building material, and energy infrastructure markets.

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