With a market capitalization of around $120 million Canadian dollars NanoXplore is a relatively big graphene company, but with a lot of potential. Their products can be used in pipes for increasing durability and strength, in tires as replacement for carbon black leading to weight reduction and costs savings. And there are many more applications for their sustainable products including in textiles, packaging, electronics, coatings and several other goods and equipment.
High Levels Of R&D-Spending Make It A Risky But Rewarding Stock
With game-changing production methods in this highly R&D-intensive sector NanoXplore is one of the first companies to scale up their production of graphene to industrial scales. This year NanoXplore started with the installation and set-up of their new high scale graphene production facility with the expectation to start producing in the second quarter of this year. NanoXplore’s main share holder is Martinrea, a fellow Canadian auto part manufacturer with whom NanoXplore has an intense working relationship. This will create a precedent for potential future buyers to physically see the improvement graphene enhanced products can bring. With a revenue of four billion Canadian dollars a year Martinrea is a significant catalyst for further growth of NanoXplore.
Graphene Products Are The Future
The widely-ranged possible applications of graphene will make it easy for NanoXplore to attract attention of potential buyers for their products. Most applications of GrapheneBlack and other NanoXplore products involve adding a small amount of this material as additive or mixture to improve certain characteristics of other materials. From extra strength, weight reduction, increasing durability, to improvement of resistance and shielding, graphene can do it all. And with NanoXplore’s main product GrapheneBlack in combination with their new high scale and low costs production facility NanoXplore will challenge carbon fiber and carbon black producers with a much better product. The introduction of NanoXplore’s new facility causes an interesting shift in manufacturing possibilities and with ongoing R&D more graphene-enhanced products and applications will presumably be added in their product portfolio. The biggest challenge for first mover NanoXplore will be competition of other graphene suppliers. But as the first industry scale supplier of graphene products NanoXplore makes an important step ahead of others.
NanoXplore Could See Large Growth On The Short Term
If the new facility will run accordingly The Golden Investor expects the business to grow exponentially in the next decade. With the potential to become a billion dollar company, the only thing NanoXplore has to do is staying more efficient than others, while continuing to increase supply where demand is created. With an exceptionally smart and well-educated team, several PhD-graduates and a motivated workforce, NanoXplore holds great growth potential to create and dominate a market created by themselves.
Disclaimer: The writer of this article holds NanoXplore (CVE:GRA) stock, this article should not be interpreted as investment advice or anything like that.