XG Sciences was formed in May 2006 for the purpose of commercializing certain
technology to produce graphene nanoplatelets. First isolated and characterized
in 2004, graphene is a single layer of carbon atoms configured in an atomic-scale
honeycomb lattice. Among many noted properties, monolayer graphene is harder
than diamonds, lighter than steel but significantly stronger, and conducts electricity
better than copper. Graphene nanoplatelets are particles consisting of multiple
layers of graphene. Graphene nanoplatelets have unique capabilities for energy
storage, thermal conductivity, electrical conductivity, barrier properties,
lubricity and the ability to impart strength when incorporated into plastics
or other matrices.
We believe the unique properties of graphene and graphene nanoplatelets will
enable numerous new product applications and the market for such products will
quickly grow to be a significant market opportunity. Our business model is to
design, manufacture and sell advanced materials we call xGnP® graphene nanoplatelets
and value-added products based on these nanoplatelets. We currently have hundreds
of customers trialing our products for numerous applications, including, but
not limited to lithium ion batteries, supercapacitors, thermal shielding and
heat transfer, inks and coatings, printed electronics, construction materials,
composites, and military uses. We believe our proprietary processes have enabled
us to be a low-cost producer of high quality, graphene nanoplatelets and that
we are well positioned to address a wide range of end-use applications.
We believe we are a “platform play” in advanced materials, because
our proprietary processes allow us to produce varying grades of graphene nanoplatelets
that can be mapped to a variety of applications in many market segments. However,
we are prioritizing our efforts in specific areas and with specific customers
that we believe represent opportunities for either relatively near-term revenue
or especially large and attractive markets. At this time, we are focused on
three high priority areas: Energy Storage, Thermal Management and Composites.
The following table shows examples of the types of applications we are pursuing,
the expecting timing of revenue and the addressable market size of selected
market opportunities.
Because graphene is a new material, most of our customers are still developing
applications that use our products. Commercialization is a process, the exact
timing of which is often difficult to predict. It starts with our own internal
R&D to validate performance for an identified market or customer-specific
need. Our customers then validate the performance of our materials and determine
whether our products can be incorporated into their manufacturing processes.
This is initially done at the pilot scale. Our customers then have to introduce
products that incorporate our materials to their own customers to validate performance.
After their customers have validated performance, our customers will then move
to commercial scale production. Every customer goes through the same process,
but will do so at varying speeds, depending on the customer, the product and
the end-use market. Thus, we are not always able to predict when our customers
will begin ordering commercial volumes of our materials or their expected volumes
over time. However, as customers move through the process, we generally receive
feedback and gain greater insights regarding their commercialization plans.
The following are recent examples of where our products are providing value
to our customers at levels that we believe will warrant their use on a commercial
basis.
We target our xGnP® nanoplatelets for use in a wide range of large and
growing end-use markets. Our proprietary manufacturing processes allow us to
produce nanoplatelets with varying performance characteristics that can be tuned
to specific end-use applications based on customer requirements. We currently
offer four commercial “grades” of bulk materials, each of which
is available in various particle sizes, which allows for surface areas ranging
from 50 to 800 square meters per gram of material depending on the product.
Other grades may be made available, depending on the needs for specific applications.
In addition, we sell our material in the form of pre-dispersed mixtures with
water, alcohol, or other organic solvents and resins.
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