Tomorrow, we are hosting various key stakeholders and government officials for a Technology Tour at our laboratory in Mississauga, Ontario to showcase our Generation III technology and future development initiatives.
For this monthly update, we highlight some of the insights expected to be shared at the Technology Tour, provide a brief commercial update, and discuss the macro environment for our key markets.
KMX’s Gen III Technology
Our latest generation of technology has been built on over 15 years of deep technology development and has already realized breakthrough results for various industries, including lithium concentration and traditional energy markets. We believe it is the most advanced membrane distillation technology, and we intend to continue innovating to maintain our leadership position.
Through our partnership approach, we are excited to proliferate this important technology across key industries and various regions, starting with lithium concentration.
Figure 1: Technology Development Path – KMX Technologies
Source: KMX Technologies, LLC
Key Benefits of Gen III – Efficiency and Durability
Two of the key benefits of our Gen III technology are superior efficiency and durability. Regarding efficiency, a significant improvement in throughput versus our previous generation of technology has allowed KMX to drive costs lower, boosting project economics and maximizing water recovery.
Superior durability, driven by exceptional manufacturing and proprietary material provided by Sumitomo, and enhancements to our proprietary designs, reduces maintenance costs and enhances our technology’s advantage in industries with challenging waste-streams.
Both factors play a key role in KMX replacing more expensive and less sustainable multi-step competing processes.
We are confident that more project developers across industries and regions will look to incorporate best-in-class technologies at the expense of outdated multi-step processes moving forward.
Commercial Update – Demos and Diversification
Preparations are underway for upcoming demonstrations and post-pilot engineering integration plans for commercial-scale systems. While we are highly focused on executing for our current customer base, the commercial team is working with select potential customers to expand our project pipeline, with a particular focus on lithium.
Our core business model remains a long-term lease one where project developers minimize CAPEX; however, we remain interested in licensing our technology with select market leaders in industries outside lithium. We hope to share more information about these efforts.
Macro Update – Lithium Tailwinds Continue to Unfold
Despite the softening macroeconomic conditions, the outlook for our core markets continue to improve.
Credit Suisse sees electric vehicle growth unabated, with EV’s representing roughly 40% of the global passenger vehicle fleet by 2030, up from under 5% today. Notably, Credit Suisse estimates legacy automakers have committed to over a half trillion dollars to the EV transition.
Importantly, we expect lithium project developers to increase focus on water stewardship and cost savings, both of which benefit KMX.
The outlook for traditional energy markets also remains robust. Higher wastewater standards coupled with an interest in monetizing critical minerals as a by-product of waste-streams is also boosting KMX’s commercial prospects in energy markets outside lithium.
Next, we expect to provide a more detailed description of some of the insights shared at our upcoming Technology Tour. We also look forward to providing insights in the months ahead on our upcoming demos and commercial progress.