Infinitum and Alliance Resource Partners, L.P. Announce Agreement to Bring Highly Efficient, Reliable Motor Technology to the Mining Industry

Rhea-AI Summary

Infinitum and Matrix Design Group, a subsidiary of Alliance Resource Partners, have announced an agreement to develop and distribute high-efficiency, reliable motors and advanced motor controllers for the mining industry. The new motor system is 50% smaller and lighter, uses 66% less copper, consumes 10% less energy, and aims to electrify heavy industry. This collaboration is expected to bring innovation to the mining industry, reduce operating costs, and boost productivity.

Insights

Market Research Analyst

The strategic alliance between Infinitum and Matrix Design Group signifies a potential paradigm shift in mining equipment technology. By integrating Infinitum's air-core motor systems, which are substantially lighter and more efficient, Matrix aims to revolutionize the performance of mining operations. This innovation aligns with the broader industry trend towards sustainability and efficiency, as mining companies worldwide are under increasing pressure to reduce environmental impact and enhance productivity.

Considering the mining sector's energy-intensive nature, a 10% reduction in energy consumption, alongside a 50% reduction in motor size and weight, could significantly decrease operational costs. This would not only improve profit margins for mining companies but also enhance the appeal of mining stocks to environmentally conscious investors. The scalability of this technology, as indicated by plans to offer it globally, suggests a substantial market opportunity for both Infinitum and ARLP.

Financial Analyst

The announcement of this joint development could be indicative of future financial performance for Alliance Resource Partners and its operating subsidiaries. The integration of Infinitum's motor technology into ARLP's mining equipment is expected to provide direct operational cost savings. For investors, the potential for reduced capital and operating expenses could translate into improved earnings and potentially higher dividends, given ARLP's status as a publicly traded master limited partnership.

It is also noteworthy that the collaboration is an extension of a strategic investment initiated in 2022. This could suggest a confidence in Infinitum's technology and a long-term vision for its integration. Investors should monitor the progress of the technology's adoption and its impact on ARLP's operational efficiency and margins.

Environmental, Social and Governance (ESG) Analyst

From an ESG perspective, the partnership between Infinitum and Matrix Design Group, particularly in the mining industry, represents a significant step towards sustainability. The ability to electrify and decarbonize heavy industry equipment is in line with global ESG trends and the transition to a low-carbon economy. Mining companies face increasing scrutiny over their environmental footprint and adopting Infinitum's motor technology could improve their ESG ratings.

Additionally, the technology's emphasis on using less copper and generating less waste could appeal to stakeholders concerned with resource conservation and responsible sourcing. These factors could enhance the corporate reputation of both Infinitum and ARLP, potentially leading to a more favorable perception among investors and the public.

This new innovative motor system will create lighter-weight, high performance mining equipment and help electrify heavy industry.

TULSA, Okla.--(BUSINESS WIRE)-- Infinitum, creator of the sustainable air-core motor, and Matrix Design Group, LLC (“Matrix”), a wholly owned subsidiary of Alliance Resource Partners, L.P. (“ARLP”) and leading safety and productivity technology provider for mining and industrial applications, today announced an agreement to jointly develop and distribute high-efficiency, reliable motors and advanced motor controllers designed specifically for the mining industry.

Under the agreement, Matrix will integrate Infinitum’s smaller, lighter motor technology into mining equipment of ARLP's operating subsidiaries to provide performance validation in production environments for the jointly developed products. In addition to supporting installations at ARLP operations, Matrix plans to offer the products to third-party mining customers around the globe.

Infinitum’s patented motor technology will replace traditional, heavy iron-core motors with a motor system that is 50% smaller and lighter, uses 66% less copper, and consumes 10% less energy, and is expected to offer mining companies and equipment manufacturers a more efficient, reliable alternative.

“Working with ARLP and Matrix expands Infinitum’s ability to sustainably power heavy machinery with our lightweight, power-dense motors that use less energy, material and waste,” said Ben Schuler, founder and Chief Executive Officer, Infinitum. “We’re excited to join forces with a mining leader like ARLP to make a greater impact towards electrifying and decarbonizing heavy industry.”

Over the past 15 years, Matrix has become a leader in collision avoidance and proximity detection technologies, providing safety and productivity solutions for ARLP and many other mining companies, while extending its reach beyond the U.S. and to other industrial applications. This agreement builds upon that success and enables the development of proven products that provide technological advancements in support of rapidly expanding customer needs.

Joseph W. Craft III, ARLP Chairman, President and Chief Executive Officer commented, “This collaboration with Infinitum represents a natural progression and extension of our strategic investment in the company. We believe their groundbreaking motor technology will bring much needed innovation to the mining industry by delivering more efficient and higher performing production equipment, which will enable companies such as ours to improve mining processes, reduce operating costs, and boost productivity.”

Infinitum, ARLP, and Matrix have collaborated since 2022, when ARLP made an initial investment in Infinitum as part of the company’s Series D funding.

About Infinitum

Infinitum has raised the bar for a new generation of motors that is better for the planet and people. The company’s patented air core motors offer superior performance in half the weight and size, at a fraction of the carbon footprint of traditional motors, making them pound for pound the most efficient in the world. Infinitum’s electric motors open up sustainable design possibilities for the machines we rely on to be smaller, lighter and quieter, improving our quality of life while also saving energy and reducing waste. Based in Austin, Texas, Infinitum is led by a team of industry experts and pioneers. To learn more, visit goinfinitum.com.

About Alliance Resource Partners, L.P.

ARLP is a diversified energy company that is currently the largest coal producer in the eastern United States, supplying reliable, affordable energy domestically and internationally to major utilities, metallurgical and industrial users. ARLP also generates operating and royalty income from mineral interests it owns in strategic coal and oil & gas producing regions in the United States. In addition, ARLP is evolving and positioning itself as a reliable energy partner for the future by pursuing opportunities that support the advancement of energy and related infrastructure. News, unit prices and additional information about ARLP, including filings with the Securities and Exchange Commission ("SEC"), are available at www.arlp.com. For more information, contact the investor relations department of ARLP at (918) 295-7673 or via e-mail at investorrelations@arlp.com.

About Matrix Design Group, LLC

A leading technology provider in the mining and industrial sectors, Matrix is a wholly owned subsidiary of Alliance Resource Partners, L.P. Since 2006, its core business has been mining safety and providing operations-friendly applications that meet evolving industry regulations. Today, it is developing customer-driven suites of innovative, leading-edge products that balance product advancement in its existing markets with expansion into new, sustainable growth markets.

Headquartered in Newburgh, Indiana, the Matrix Team embraces the concept of hard work, working smart, and collaborating on product development with its customers and strategic partners. As technology evolves, Matrix incorporates the latest innovations, such as artificial intelligence, cloud management, and real-world analytics into its next-generation products. The Matrix Quality Management System (QMS) is certified as being in conformity with ISO 9001:2015 by Intertek. For more information, please visit MatrixTeam.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240116028889/en/

Infinitum Media Contact:

Erin Gilmore

Activate PR on behalf of Infinitum

egilmore@activateprmktg.com

512-466-4559

ARLP Investor Relations Contact:

Cary P. Marshall

Senior Vice President and Chief Financial Officer

918-295-7673

investorrelations@arlp.com

Source: Alliance Resource Partners, L.P.

FAQ

What is the agreement between Infinitum and Matrix Design Group?

The agreement aims to jointly develop and distribute high-efficiency, reliable motors and advanced motor controllers for the mining industry.

What are the benefits of the new motor system?

The new motor system is 50% smaller and lighter, uses 66% less copper, consumes 10% less energy, and aims to electrify heavy industry.

When did ARLP make an initial investment in Infinitum?

ARLP made an initial investment in Infinitum as part of the company’s Series D funding in 2022.