Research Report: Forge Nano
Forge Nano, Inc. is a leading materials science company specializing in the development of Atomic Layer Deposition (ALD) technology. Founded in 2011 and headquartered in Thornton, Colorado, Forge Nano has established itself as a pioneer in precision nano-coating technology, offering scalable solutions for a wide range of industries, including batteries, semiconductors, pharmaceuticals, and more.
Forge Nano is changing the way that batteries are made. With their proprietary Atomic Armor technology they allow manufacturers to engineer their materials, down to the individual atom, in a way that is scalable and cost saving. The superior coatings produced by Forge Nano’s Atomic Armor process allow them to unlock a material's performance at the atomic level, optimizing battery characteristics like range, safety and cycle life, to name a few. The Forge Nano team of scientists have worked with an expansive portfolio of commercial partners to develop custom solutions to meet any need at any scale, from small-scale R&D and laboratory work to large-scale, high-volume production.
Over the last year, Forge Nano has signed key strategic partnerships with leading U.S. producers of materials and battery off-takers that demonstrate the capabilities of Forge Nano’s proprietary nanocoating technology, Atomic Armor, to create next-generation batteries and strengthen the U.S. domestic battery supply chain. For example, the company’s recent partnership with Anovion, an innovation-led, U.S.-based battery material producer, combines the strengths of Forge Nano’s proven surface engineering capabilities with Anovion’s synthetic graphite for next-generation, lithium-ion batteries that deliver industry-leading performance.
Dominated by EVs, electrification presents a $100B Market Opportunity
Electrification of vehicles is a secular megatrend projected to grow 22% compound annual growth rate (CAGR) through 2035.
The demand for Li+ batteries from automotive companies is forecasted to grow at a 14% CAGR from ~$40B to >$100B through 2027.
The need for domestic LI+ production
Sources: Benchmark minerals; Statista; CNN Business; all data is estimated
China Dominates Li+ Production; the US is moving to Secure Domestic Production
Market Position and Growth
Forge Nano has positioned itself as a key player in the nanotechnology sector, focusing on enhancing material properties at the atomic level. The company’s proprietary Atomic Armor™ technology enables manufacturers to engineer their materials atom-by-atom, improving product performance and longevity. This technology is particularly impactful in the battery industry, where it contributes to the creation of more durable and efficient lithium-ion batteries.
In 2023, Forge Nano raised over $50 million in a funding round led by Hanwha Corporate Venture Capital, bringing its total capital raised to more than $95 million. This funding is being used to build out a 1 GWh battery production line to meet the growing demand for premium batteries. The new facility will support various applications, including aerospace, consumer electronics, and defense, positioning Forge Nano for significant revenue growth and market expansion.
Key Technological Innovations
Atomic Armor™ Technology: Forge Nano’s flagship technology, Atomic Armor™, applies ALD to various materials, enhancing their properties and performance. This technology is critical for producing next-generation batteries with higher efficiency and durability.
ALD Equipment: The company offers a range of ALD equipment for different scales of production, from R&D systems to commercial-scale manufacturing. Their equipment portfolio includes solutions for wafer coating, powder coating, and object coating, making Forge Nano a versatile provider in the ALD market.
Forge Nano’s Atomic Armor is Poised to Deliver a Step Change in Li+ Batteries
High Energy density – 20% increase in range for same battery size and chemistry.
Fast charge – enables 10-minute fast charge without sacrificing battery life.
Longer cycle life – 2x to 10x increase for same battery size and chemistry.
Lower fire risk – pushes out thermal runaway initiation point from 70o C to 140o C (when separator melts); 50% reduction in heat generation.
Best in class battery cost – 20% lower cost per kWh.
Light weight and long range – 20% reduction in battery weight.
Forge Nano’s Atomic Armor Benefits
Technology – Atomic Layer Deposition(ALD) is revolutionary technology that enhances materials and creates better performance.
Protection – Atomic Armor creates a nano shield to prevent negative reactions.
Performance – Atomic Armor enhances the material surface to improve functional properties.
Source: from Forge Nano presentation, May 2023.
Strategic Partnerships and Collaborations
Forge Nano has formed key strategic partnerships with leading U.S. material producers and battery manufacturers. Over the last two years, Forge Nano has signed partnership agreements with leading U.S. producers of materials and battery off-takers that demonstrate the capabilities of Forge Nano’s proprietary nanocoating technology, Atomic Armor, to create next-generation batteries and strengthen the U.S. domestic battery supply chain. Notably, their collaboration with Anovion, focuses on developing next-generation lithium-ion batteries using Forge Nano’s ALD technology and Anovion’s synthetic graphite for next-generation, lithium-ion batteries that deliver industry-leading performance. These partnerships are crucial for advancing the company’s technology and expanding its market reach.
Financial Performance
Forge Nano has demonstrated robust financial growth, with revenues doubling year-over-year in recent periods. The company’s financial health is supported by strategic investments and increasing demand for its advanced nanocoating solutions. The new battery production line is expected to further accelerate revenue growth and enhance Forge Nano’s market position.
Our View
Forge Nano stands out as a promising investment opportunity in the nanotechnology and advanced materials sectors. The company’s innovative ALD technology, strong market position, strategic partnerships and robust financial performance highlight its potential for continued growth and industry leadership. We believe that exposure to this cutting-edge nanotechnology and the rapidly evolving battery market will position Forge Nano as a compelling growth company for quite a number of years.
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