Hyliion Launches Production of First KARNOTM Additive Components at Austin Headquarters

Rhea-AI Summary

Hyliion Holdings Corp. (NYSE: HYLN) announced the start of manufacturing additive components for the KARNO generator at its Austin, Texas headquarters. This milestone aims to scale production capacity in preparation for delivering generators to customers later in 2024. Hyliion's facilities in Austin and Milford, Ohio, house over a dozen additive printing machines, with plans for future capacity expansion. The company is utilizing advanced Colibrium Additive M Line printers to enhance production speed and efficiency. CEO Thomas Healy emphasized the benefits of additive manufacturing in producing complex and durable components economically. Initial parts include aluminum cooling jackets for the KARNO generator, with more components to follow. The first KARNO generators are slated for delivery in the second half of 2024, providing critical data for further technology refinement.

Positive

• Hyliion has initiated manufacturing additive components for the KARNO generator, marking a substantial production milestone.
• Hyliion's facilities house over a dozen additive printing machines, with plans to expand capacity.
• Utilization of advanced Colibrium Additive M Line printers is expected to enhance production speed and efficiency.
• Additive manufacturing offers benefits such as design flexibility, reduced material waste, and improved durability.
• Initial parts include aluminum cooling jackets, essential for the KARNO generator's efficiency.
• The first KARNO generators are expected to be delivered to early adopters in the second half of 2024, providing important real-world data.

Negative

• The commencement of additive manufacturing does not immediately translate into revenue, with delivery expected only in the second half of 2024.
• There is no immediate financial impact reported from this production milestone, which could be a concern for short-term investors.
• Future scalability is implied but not guaranteed, depending on market acceptance and operational execution.
• The press release does not specify the cost implications of adding advanced printing machines, which could impact profitability.

Insights

Tech Expert

Hyliion's move to initiate additive manufacturing for its KARNO generators showcases its commitment to leveraging cutting-edge technology to enhance efficiency and scalability. Additive manufacturing, often referred to as 3D printing, offers numerous benefits over traditional manufacturing methods. For example, it allows for complex geometries that are not possible with conventional methods and significantly reduces material waste, which can lead to cost savings and environmental benefits. Additionally, the use of Colibrium Additive's M Line printers suggests that Hyliion is investing in advanced equipment to ensure high-quality production and quick turnaround times. This can be particularly advantageous in the competitive market of sustainable power generation, where speed, efficiency and innovation are crucial.

Furthermore, the production of aluminum cooling jackets—a critical component for heat management in the KARNO generator—demonstrates the practical applications of additive manufacturing in improving product performance and reliability. As the company continues to expand its manufacturing capabilities, it can expect to see further enhancements in product quality and reductions in production costs.

Financial Analyst

From a financial perspective, Hyliion's announcement indicates a strategic move towards scaling production capacity, which is a positive signal for investors. The ability to produce additive components in-house can lead to cost efficiencies and potentially higher profit margins. Additionally, by preparing to deliver the first KARNO generators to customers later this year, the company is setting the stage for future revenue streams. The mention of early adopters suggests that there is already interest and potential demand for the product, which bodes well for future sales and market penetration.

It is also noteworthy that the company is expanding its manufacturing capabilities not just in Austin but also in its existing facility in Ohio. This geographic diversification can help mitigate risks associated with supply chain disruptions and increase production resilience. However, investors should keep an eye on the company's ability to ramp up production efficiently and meet delivery timelines, as any delays could impact financial performance and investor sentiment.

Market Research Analyst

The power generation industry is increasingly focused on sustainability and efficiency and Hyliion's advancements in additive manufacturing align with these industry trends. By enhancing the efficiency of its KARNO generators through innovative production techniques, Hyliion is positioning itself as a leader in the market. The use of 3D printing not only improves the performance of the generators but also allows for rapid prototyping and iterations, which can accelerate the development cycle and bring new products to market faster.

In the long term, Hyliion's ability to scale production and meet market demand will be critical to its success. The company's focus on additive manufacturing and advanced printing technology can provide a competitive edge, but it must also ensure that it can maintain quality and reliability as it scales up. Real-world data from early adopters will be important in refining the technology and proving its efficacy in practical applications. Investors should monitor customer feedback and the company's ability to address any issues that arise during the initial deployments.

AUSTIN, Texas--(BUSINESS WIRE)-- Hyliion Holdings Corp. (NYSE: HYLN) (“Hyliion”), a developer of sustainable electricity-producing technology, is proud to announce the successful commencement of manufacturing of additive parts for the KARNO generator at its headquarters in Austin, Texas. This significant achievement will assist with scaling capacity as the company moves towards delivering generators to customers later this year.

Between Hyliion’s headquarters in Austin, Texas, and its R&D facility in Milford, Ohio, the company currently owns over a dozen additive printing machines, with the intent to markedly grow its manufacturing capacity in the years ahead. The new additions to the manufacturing capabilities will include cutting-edge Colibrium Additive (formerly GE Additive) M Line printers that offer the latest in production speed and efficiency improvements.

Thomas Healy, Founder and CEO of Hyliion, commented, "Initiating additive production in Austin greatly enhances our manufacturing capacity as we gear up to deliver our first KARNO units to customers this year. By leveraging additive manufacturing, we can produce complex components while also scaling production economically for the KARNO generator."

The KARNO generator’s efficiency is significantly enhanced by the precision and innovation enabled through this advanced 3D printing process. Additive manufacturing allows for enhanced design flexibility, reduced material waste, and robust durability, setting a new standard for high-performance component production in the power generation industry.

The initial parts printed in Austin were aluminum cooling jackets used in the KARNO generator to remove the heat generated by the linear electric machine. In the coming months, the company will start producing additional additive components for the generator in Austin, scaling up production alongside its existing facility in Ohio.

The first KARNO generators are expected to be delivered to early adopter customers in the second half of 2024. These initial deployments will provide valuable real-world data and feedback, further refining the technology and solidifying Hyliion’s position as a pioneer in the power generation sector.

About Hyliion

Hyliion is committed to creating innovative solutions that enable clean, flexible and affordable electricity production. The Company’s primary focus is to provide distributed power generators that can operate on various fuel sources to future-proof against an ever-changing energy economy. Headquartered in Austin, Texas, and with research and development in Cincinnati, Ohio, Hyliion is initially targeting the commercial and waste management industries with a locally deployable generator that can offer prime power as well as energy arbitrage opportunities. Beyond stationary power, Hyliion will address mobile applications such as vehicles and marine. The Company aims to offer innovative, yet practical solutions that contribute positively to the environment in the energy economy. For further information, please visit www.hyliion.com.

Forward-Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Hyliion and its future financial and operational performance, as well as its strategy, future operations, estimated financial position, estimated revenues, and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, including any oral statements made in connection therewith, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Hyliion expressly disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements herein, to reflect events or circumstances after the date of this press release. Hyliion cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Hyliion. These risks include, but are not limited to, our status as an early stage Company with a history of losses; our expectation of incurring significant expenses and continuing losses for the foreseeable future; our ability to develop key commercial relationships with suppliers and customers; our ability to retain the services of Thomas Healy, our Chief Executive Officer; the expected performance of the KARNO generator and system; the execution of the strategic shift from our powertrain business to our KARNO business, and the other risks and uncertainties described under the heading “Risk Factors” in our SEC filings including in our Annual Report (See item 1A. Risk Factors) on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 13, 2024 for the year ended December 31, 2023. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact Hyliion’s operations and projections can be found in its filings with the SEC. Hyliion’s SEC Filings are available publicly on the SEC’s website at www.sec.gov, and readers are urged to carefully review and consider the various disclosures made in such filings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240605361837/en/

Hyliion Holdings Corp.

press@hyliion.com

Investor Relations

ir@hyliion.com

Source: Hyliion Holdings Corp.

FAQ

What recent manufacturing milestone did Hyliion achieve?

Hyliion has started manufacturing additive components for the KARNO generator at their Austin, Texas headquarters.

When will Hyliion deliver the first KARNO generators?

The first KARNO generators are expected to be delivered to early adopter customers in the second half of 2024.

What technology is Hyliion using for the KARNO generator production?

Hyliion is using advanced Colibrium Additive M Line printers, which offer improved production speed and efficiency.

What are the benefits of Hyliion's additive manufacturing?

Additive manufacturing allows for complex designs, reduced material waste, enhanced durability, and economic scaling of production.

Where are Hyliion's manufacturing facilities located?

Hyliion's manufacturing facilities are located in Austin, Texas, and Milford, Ohio.