Soteria licenses its lithium-ion battery safety materials into a broad supply base so that every device, whether a hearing aid or an electric bus, can have a battery that is virtually impossible to self-ignite. Having established itself as one of the primary go-to sources for battery safety, Soteria is well-positioned to ensure that these materials are used responsibly by setting world-class safety standards.
Soteria’s technology addresses the ignition event, and stops the flow of energy when a short circuit occurs, preventing ignition. Soteria is licensing its technology to material and cell manufacturers for ultimate sale to end users. Royalties are calculated as a percentage of the battery cost. The Company owns 80 trademarks, copyrights, Internet domain names, and trade secrets.
The lithium-ion battery market is projected to exceed $400B by 2030 driven by the rapid growth of electric vehicles and utility storage. The SAM for the capital-efficient royalty model is over $4B.The company is targeting 1.5-2% royalties, which makes the TAM $6-8B. Since it can access almost all of that, the SAM is at least $4B. Competitors in the space include Amionx, Meta Materials, and Electrovaya.
Soteria has formed an open innovation consortium to optimize the network effect as the principal go-to-market vehicle. The consortium is a fee-based network connecting materials suppliers, equipment suppliers, testing labs, licensees, and end users, thus involving a broad array of over 120 worldwide stakeholders involved in optimizing battery innovations for the lithium-ion market. Soteria recently purchased Voltaplex, which may streamline its adoption in small device markets and add revenue and margin immediately. In the future, it plans to enter into a battery pack line for e-bike safety.
Soteria has sold three technology licenses to Glatfelter, Ahlstrom, and Delfort and currently receives $240,000 per year in licensing revenue. The consortium formed by the company has revenue of around $500k per year. Through the purchase of Voltaplex in December 2022, Soteria now has a product distribution business for lithium-ion battery packs with significant ongoing revenue. Revenue of $1.15M was recorded in 2022 compared to $785k in 2021. The net loss was $2.37M in 2022 against $1.54M in 2021. The gross margin was 75%.