RENO, NV / ACCESSWIRE / June 1, 2023 / Concerns about an upcoming recession are continuing to not just grow but mutate. As a consequence of simultaneous central bank interest rate hikes and ongoing economic instability, the World Bank warned of the risk of a recession in 2023.
However, despite fears of a recession, the commitment to a low-carbon, clean energy economy has not wavered. In 2022, $1.1 trillion was invested in clean energy, equalling fossil fuel spending for the first time ever.
There is no better example of robust growth in the clean energy market than the lithium-ion battery segment. Forecasts for this sector are routinely revised upwards, and current projections for the entire battery chain predict its growth from $85 billion in 2022 to $400 billion by 2030, at a compound annual growth rate (CAGR) of 21%.
Dragonfly Energy Holdings Corp (NASDAQ:DFLI) is a Nevada-based supplier of deep-cycle lithium-ion batteries. The company is addressing the need for clean energy through its line of batteries, with over 45 filed and pending patents. It also has over 10 years of experience in research and development (R&D) and is focused on developing long-lasting and efficient energy storage solutions.
The company has already seen success with its brand Battle Born Batteries. These batteries are made of Lithium Iron Phosphate (LiFePO4), which is a safer and more powerful energy source than traditional, lead acid batteries. These batteries are designed by the company and assembled in-house. Long term, the company aims to use lithium from the ground in Nevada to build cells, assemble battery packs and recycle in-state as well - creating a fully vertically integrated process and lithium loop for domestic batteries.
Q1 Results And An R&D Future
Dragonfly Energy just released its financial results for Q1 of 2023. It saw $18.8 million in revenue, a 2.7% increase year-on-year (YoY), beating expectations. Diluted earnings per share (EPS) were $0.10, again beating analyst expectations.
"We delivered a solid start to 2023, with healthy sales and record growth within the OEM segment, while effectively managing headwinds that challenged the wider industry," said Denis Phares, CEO of Dragonfly Energy. "In addition to our healthy core business, we have a strong and growing patent portfolio ranging from innovative new products, like our Dragonfly IntelLigence™ line of battery packs, to groundbreaking new cell manufacturing and design technologies that we believe offer significant upside and long-term competitive advantages within the energy storage market."
Dragonfly also revealed in the earnings call that it hit a significant milestone in the development of these batteries - successfully cycling a cell 1000 times with no added liquids or external pressure applied. This chemistry-agnostic process can be used for a variety of applications, signaling potential growth in these verticals and de-risking efforts. Commercialization of this technology, as mentioned in the Q1 call, is expected to occur in 2024.
Dragonfly is continuing to fund its R&D efforts with the goal of creating a next-generation, non-flammable solid-state battery to solve the looming energy storage problem. It has verified the nonflammable technology and is optimizing cell efficiency and getting ready for production. As it moves toward completing the battery's development, the company's goal is for all its energy storage solutions to be fully vertically integrated. - entirely within the U.S., potentially positioning it to be a key part of the U.S. transition to clean energy in a world where China still dominates lithium battery production.
Featured photo courtesy of Dragonfly Energy.
Sioban Hickie, ICR, Inc.
SOURCE: Dragonfly Energy