Annual Outlook – Goals for the Year Ahead
It was a transformative year for KMX, and the outlook remains strong for 2025 and the years ahead. In this update, I’ll share some of the key developments from 2024 and outline the major milestones and tailwinds available in 2025.
Last year, we realized three key developments, including: 1) successful technology demonstrations, 2) the closing of our strategic investment round, and 3) breakthrough results for our next generation mineral separation application.
Building on our foundational work in 2024, this year the team aims to: 1) commence manufacturing of Vacuum Membrane Distillation (VMD) systems for our cornerstone customers, and 2) open a new laboratory in North America to accommodate KMX’s commercial growth and diversification.
Major Milestones of 2024:
1. Successful Demonstrations:
Critically, 2024 saw the successful demonstration of our Gen III VMD technology by our partner in oil & gas produced water treatment, TETRA Technologies.
As TETRA recently announced, TETRA “completed a commercial pilot project for the desalination of Delaware Basin produced water for a major North America oil and gas operator”.
Notably, “The desalinated water was tested against published Texas Railroad Commission (“TRRC”) standards for beneficial re-use water at both TETRA’s laboratory and an independent third-party laboratory.”
Desalinating oil & gas produced water represents a massive opportunity for KMX (the Houston Chronicle recently referenced a $4 billion annual market opportunity in the Permian Basin).
The drivers behind desalinating oil & gas produced water are set to increase, including earthquakes resulting from the injection of produced water into disposal wells, regional drought, and interest in monetizing critical minerals found in produced water.
2. Close of Investment Round:
The team closed an over-subscribed investment round from world-class leading water and critical mineral investors in 2024. The round was led by PureTerra Ventures with funds from the European Investment Fund (EIF) and included TETRA Technologies, Archer Private Investments, and other existing investors.
The investment allows for the expansion of the team and accelerated commercialization. As a result, we are currently making new hires in the U.S. and Canada spanning engineering, operations, and commercial roles, as well as laying a foundation for the next leg of KMX’s growth.
3. Next Generation Mineral Extraction Application:
In addition to the commercialization of our Gen III VMD technology for mineral concentration and desalination, the KMX team has made significant progress advancing our proprietary mineral and salt separation technology, first highlighted in late 2023.
Mining company customer trials for this breakthrough technology have been successful in 2024, and the team is set to further accelerate the development of this technology in the year ahead, in-concert with unfolding R&D investments at our laboratory in Canada.
We intend to share more information in the coming year as we continue to advance the process and move towards commercialization with select strategic partners.
Milestones and Tailwinds for 2025:
There are several major milestones available for the team this year, supported by growing tailwinds in various end-markets.
1. Commence Manufacturing of Gen III Customer Systems:
As announced, TETRA and KMX are in the design phase of building an additional mobile commercial unit for TETRA to deploy as part of TETRA’s leading beneficial reuse solution.
The KMX team is proud to support TETRA in the delivery of this revolutionary technology for the mineral-rich oil and gas produced water market.
The team is working on several other design and manufacturing initiatives, which we hope to share in the year ahead.
2. Facilitating Commercial Growth; New Lab and Team Members in 2025:
The search for a location for an additional KMX laboratory has begun, spanning the U.S. and Canada, with an eye towards areas that could become future battery hubs and innovation powerhouses in North America.
The new KMX laboratory will facilitate our commercial growth and provide a space to work with new customers in additional industries that stand to benefit from the adoption of our proprietary VMD technology.
In the coming months, we intend to announce the home of KMX’s new laboratory. We look forward to expanding our operational capabilities and welcoming new team members with the opening of this new innovative facility.
Maximizing Water and Critical Mineral Recovery:
Despite a softening of lithium prices in 2024, long-term demand remains intact. The necessity to unlock other critical minerals continues to increase as well.
The need for companies and governments to increase water recovery in arid and water-intensive industries and regions also continues to grow.
Building on recent milestones and successes in 2024, the KMX team is excited to enable our strategic partners and customers to maximize water and mineral recovery in the years ahead.
– Zac
Zachary Sadow
Chairman & CEO
KMX Technologies