Coherent Selected for Funding by the Department of Energy for Its Li-S Battery Technology for Next-Generation Electric Vehicles

Rhea-AI Summary

Coherent Corp. (NYSE: COHR) has secured multimillion-dollar funding from the Department of Energy (DOE) to accelerate the development of its patented chemical immobilization technology for lithium sulfur (Li-S) battery cells. The funding aims to meet next-generation electric vehicle (EV) requirements and recognizes the unique ability of Coherent’s technology to store more energy in less weight at lower cost. Coherent will use the funds to optimize its patented immobilized sulfur materials and cathodes for EV requirements, with a focus on designing and manufacturing stable cathodes based on sulfur that can retain more than 80% of their original capacity after 1,000 recharging cycles. The potential of sulfur cathodes to secure supply chains and support the strong and growing EV market is also highlighted.

Insights

Energy Technology Analyst

The Department of Energy's multimillion-dollar investment in Coherent Corp. signals a significant commitment to advancing electric vehicle (EV) battery technology. The focus on lithium-sulfur (Li-S) cells is noteworthy, as they promise higher energy densities than current lithium-ion batteries, which could lead to longer driving ranges for EVs. This funding could catalyze the development of a technology that has the potential to disrupt the EV battery market, currently dominated by lithium-ion variants.

Li-S batteries are less mature than lithium-ion batteries, but the support from the DOE could help overcome some of the technical challenges, such as the notorious 'polysulfide shuttle' issue, which has historically hampered the commercial viability of Li-S batteries. If Coherent's chemical immobilization technology can successfully stabilize sulfur cathodes, it could reduce reliance on metals like cobalt and nickel, which have ethical and supply chain concerns.

For the energy sector, this development could lead to more sustainable battery production and help meet the growing demand for EVs, which is aligned with global efforts to reduce carbon emissions. However, it's important to monitor the scalability of this technology and its integration into the existing manufacturing ecosystem.

Financial Analyst

The DOE's funding for Coherent Corp. is a strategic move that can be seen as a vote of confidence in the company's technology and its market potential. Investors should note the potential for long-term growth if Coherent successfully brings its Li-S battery cells to market. The company's stock could see increased investor interest as it progresses through the development phases and begins to demonstrate the commercial viability of its technology.

While this funding is a positive development, it is also essential to consider the execution risks associated with R&D-intensive projects. Investors should look for milestones such as the production of demonstration cells and the achievement of the targeted energy densities and cycle life. These milestones will be critical indicators of the technology's readiness for commercialization and its potential impact on Coherent's financial performance.

It's also worth considering how this technology might affect the broader battery supply chain and the competitive landscape. A successful Li-S battery could shift market dynamics, potentially impacting other companies in the battery and EV sectors.

Automotive Industry Analyst

The advancement of Li-S battery technology has significant implications for the automotive industry, particularly for EV manufacturers. The promise of batteries that offer higher energy densities and lower costs could accelerate the adoption of EVs, making them more competitive with internal combustion engine vehicles. Coherent's technology could enable manufacturers to offer EVs with longer ranges without significantly increasing vehicle weight, addressing one of the main consumer concerns regarding EVs.

However, the transition from lithium-ion to Li-S batteries will not be immediate. Automotive companies will need to consider the compatibility of Li-S batteries with existing vehicle designs and charging infrastructure. The industry will also need to address potential challenges in battery management systems and safety protocols for these new types of batteries.

For stakeholders, the implications are two-fold: there is the potential for increased demand for EVs, but there is also the need for strategic planning to adapt to new battery technologies. This could lead to partnerships or further investments in companies like Coherent that are at the forefront of battery innovation.

PITTSBURGH, Jan. 31, 2024 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR), a global leader in engineered materials, has been selected for multimillion-dollar funding under the Department of Energy (DOE) Fiscal Year 2023 Vehicle Technologies Office (VTO) Program Wide Funding Opportunity Announcement (FOA-0002893). This funding will accelerate the development of Coherent’s patented chemical immobilization technology for lithium sulfur (Li-S) battery cells to meet next-generation electric vehicle (EV) requirements.

“The innovations behind sulfur immobilization are based on more than a decade of research by Coherent to make sulfur cathodes and Li-S batteries a commercial reality,” said Rob Murano, Senior Director, Product Development and Commercialization. “This selection recognizes the unique ability of Coherent’s technology to unlock the potential of sulfur cathodes – storing more energy in less weight at lower cost.”

Under this three-year program, Coherent will use the DOE funds to optimize its patented immobilized sulfur materials and cathodes for EV requirements. Coherent will build demonstration cells that target energy densities exceeding today’s best-in-class EV batteries while retaining more than 80% of their original capacity after 1,000 recharging cycles. Designing and manufacturing stable cathodes based on sulfur has long been a goal of battery researchers, as sulfur provides both higher performance and lower cost compared with current cathode materials such as nickel and cobalt. As such, sulfur cathodes have the potential to both secure supply chains and support the strong and growing EV market.
        
About Coherent

Coherent empowers market innovators to define the future through breakthrough technologies, from materials to systems. We deliver innovations that resonate with our customers in diversified applications for the industrial, communications, electronics, and instrumentation markets. Headquartered in Saxonburg, Pennsylvania, Coherent has research and development, manufacturing, sales, service, and distribution facilities worldwide. For more information, please visit us at coherent.com.

Contact

Mark Lourie
Vice President, Corporate Communications
corporate.communications@coherent.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/feb4c598-e553-4428-8981-dd6dd810ee37

FAQ

What is the funding for Coherent Corp. from the Department of Energy (DOE)?

Coherent Corp. has secured multimillion-dollar funding under the Department of Energy (DOE) Fiscal Year 2023 Vehicle Technologies Office (VTO) Program Wide Funding Opportunity Announcement (FOA-0002893) to accelerate the development of its patented chemical immobilization technology for lithium sulfur (Li-S) battery cells.

What are the goals of the funding received by Coherent Corp. from the Department of Energy (DOE)?

The funding aims to optimize Coherent’s patented immobilized sulfur materials and cathodes for electric vehicle (EV) requirements, with a focus on designing and manufacturing stable cathodes based on sulfur that can retain more than 80% of their original capacity after 1,000 recharging cycles.

What is the potential of sulfur cathodes mentioned in the press release?

Sulfur cathodes have the potential to secure supply chains and support the strong and growing EV market, as they provide higher performance and lower cost compared with current cathode materials such as nickel and cobalt.

What is the ticker symbol for Coherent Corp.?

The ticker symbol for Coherent Corp. is COHR.