KULR Stock Surges on $30M Battery Supply Deal with Caban Energy
The five-year agreement includes the expansion of KULR's U.S. manufacturing footprint through the acquisition of Caban's facility in Texas.
Shares of KULR Technology Group Inc. (NYSE: KULR) jumped more than 13% in recent trading after the company announced a significant five-year preferred battery supply agreement with Caban Energy. The deal, valued at up to $30 million, marks a strategic victory for the thermal management and battery safety firm as it expands its manufacturing capabilities and secures a substantial long-term revenue stream.
Under the terms of the agreement, KULR will supply battery products to Caban Energy, a provider of sustainable energy solutions for the telecommunications sector and other critical infrastructure. The deal is projected to generate an average of $6 million in annual revenue for KULR, a notable increase over its trailing twelve-month revenue of approximately $16.7 million. This provides a significant boost to the company's top line and enhances its financial predictability over the next half-decade.
A key component of the partnership involves KULR taking over Caban’s manufacturing facility in Plano, Texas. According to the company's official announcement, this move is set to accelerate KULR’s expansion into the energy storage markets for communications, fiber, and data centers by establishing a stronger U.S.-based production capacity.
"This partnership is a milestone in our journey to monetize our extensive technology portfolio," a company representative might state, emphasizing the transition from research and development to large-scale commercialization. The collaboration allows KULR to leverage its expertise in battery safety and thermal management—initially developed for high-stakes applications in aerospace and defense—for the rapidly growing terrestrial energy storage market.
Investors responded positively to the news, sending KULR’s stock price up approximately 13% to $3.91 on heavy trading volume. The company, which has a market capitalization of around $157 million, has been working to solidify its position in the competitive battery technology space. This deal serves as a major validation of its patented technology and go-to-market strategy.
Caban Energy specializes in designing and operating intelligent, modular energy systems that often replace legacy power sources like diesel generators with cleaner battery-based solutions. The partnership ensures Caban a reliable supply of safe and efficient batteries, which are core to its Energy-as-a-Service (EaaS) model for the telecommunications industry. This sector's demand for resilient and sustainable power is growing, driven by the rollout of 5G and the increasing need for uninterrupted connectivity.
The agreement represents a strategic pivot for KULR, positioning it not just as a technology developer but as a key supplier in the domestic energy supply chain. By securing a multi-year contract and expanding its physical manufacturing footprint, KULR is better positioned to capture future opportunities in the electrification of everything from data centers to electric vehicles. For a company with a 52-week stock price range between $2.15 and $21.76, this deal provides a fundamental anchor that could support sustained growth and reduced volatility moving forward.