Dragonfly Energy Holdings Corp stock shot up after it revealed that it would be granted a new US patent for the use of a powder-coating process related to non-flammable lithium battery production.
The Reno, Nevada-based supplier of deep-cycle lithium-ion batteries explained that the US patent addresses the streamlined production of conventional lithium-ion (Li-ion) batteries and nonflammable solid-state lithium batteries in the US.
According to the company, the patent is for the “preparation and powder film deposition of pre-coated powders” and specifically addresses the feedstock material portion of the process in the production of conventional Li-ion batteries and nonflammable solid-state lithium batteries. Dragonfly said it paves the way for it to bring nonflammable LiFePO4 storage batteries to market.
Investors reacted to the news, sending Dragonfly shares up 14.8% to $2.94 on the Nasdaq in morning trade.
The company said the allowance is a big step in its mission to produce nonflammable lithium batteries in the US. Solvent-free cell production is known to have a big cost advantage over traditional slurry coating, and the company has successfully applied the process to different battery chemistries, including all solid-state cells.
Manufacturability at scale remains a challenge to the commercialization of solid-state batteries. Dragonfly’s new patent enables it to use a powder-coating process that cuts out the need for large drying rooms, replacing methods which require a lot of time and expensive heavy machinery, making the process scalable within a reduced footprint.
Dragonfly’s nonflammable all solid-state batteries will contain a solid electrolyte rather than liquid, making them lighter, smaller, non-flammable, and potentially cheaper to manufacture.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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