First used in the 1990s, Lithium-ion (Li-ion) batteries are used in countless rechargeable electronic products today, including mobile phones, power tools, toys, laptops and electric vehicles, to name just a few applications. As it happens, a handful of companies have also recently come out with rechargeable Li-ion batteries in common sizes like AA, D and 9-volt, chipping in on accelerating industry growth with the advent of EVs and mobile communications.
According to Statista, “In the upcoming five years, the global lithium-ion battery market is expected to double in size, reaching $71.0 billion by 2025.”
There is one notable problem with Li-ion batteries, though…and it’s a big one. They can catch fire, generally from excessive heat or short-circuit. From there, a domino effect can ensue, spreading the fire from cell to cell until everything around it could go up in flames, whether it’s a phone, a car or an airplane.
While explosions are relatively rare given the hundreds of millions of Li-ion batteries in use, protecting against fires is a top priority, resulting in stiff regulations on shipping where an explosion can be catastrophic.
It is these fire and overheating risks that have battery manufacturers, shippers and others in the industry looking to companies like KULR Technology Group, Inc. (OTCQB: KULR) for their end-to-end portfolio of Li-ion battery technologies to test and protects against fire propagation. For instance, KULR technology has been used multiple times on NASA space programs, where the risk of fire needs to be mitigated to the maximum degree. The company also has proprietary packaging for shipping Li-ion batteries, including those that are damaged that are subject to intense safety regulations.
In addition to NASA, KULR works with stalwarts like Boeing (NYSE: BA) and Lockheed Martin (NYSE: LMT), as well as striking a deal with Drako that will put its thermal management technology in Drako’s new $1.3 million GTE electric supercar.
With this sort of pedigree, it is not surprising that KULR is making headway into the regulation space, working with different entities and governing bodies, including the United Nations, HAZMAT Safety Consulting and Outdoor Power Equipment Institute. Getting a seat at the table is not easy and comes with advantages, namely brand exposure and a bird’s eye view of where things are going in battery shipping and being able to add input as an expert on the matter.
Shares Liquid and Rising
Early in 2020, shares of KULR traded by appointment as the company quietly worked in niche aerospace markets. While sexy, that’s not where the company was going to build value, it took moving into commercial markets here on Earth and KULR has burst onto that scene in recent months. That has catalyzed trading volumes, particularly since June, when the stock went from a low of 55 cents to as high as $3.70.
The 10-day trading volume is now near 180,000 shares per day, according to data from Yahoo Finance.
A retrace from the 52-week high at $3.70 established technical support at $0.80 and $0.90. Support is a level identified by technicians where selling tends to end, replaced with buying that results in a stock price rising. Technicians take note of the new uptrend in place since coming off the bottom support, including new higher highs at $1.36 and recently $1.88 this month.
Shares have been consolidating off the recent high for 6 days and holding over the $1.36 support, potentially a sign that the spring tension could be mounting for a next leg in continuance of the uptrend. Further lending credence to that notion is the dragonfly doji made today with KULR opening at $1.59, dipping to $1.42 in intraday trading and closing right where it started. In this case, the doji can be interpreted as a possible signal for a reversal in direction after the pullback from the high.
The way KULR moved in leaps and bounds in June, it did very little to set up technical resistance levels. To that point, there is resistance at $2.00 and some more around $2.15 as intraday highs during the consolidation, but it is relatively open beyond that until the 52-week high is tested again, as is covered in more detail in this short video (https://youtu.be/vQRJFXSAH2c), making KULR a company to keep an eye on both fundamentally and technically.
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