Braidy Industries have reported that they have spent US$15.7 million on the construction of its Braidy Atlas aluminium rolling mill in Greenup. It is working towards meeting its anticipated target of bringing the mill to full commercial operation in 2021.
Braidy is banking on its proprietary Veloxint alloy, designed by Massachusetts Institute of Technology scientists for this project. These ultra-high strength metals alloys are suitable for extreme temperature uses in the automotive and aerospace industries and help in weight and cost savings. Braidy acquired Veloxint in the first quarter of 2018 and NanoAl, another leader in high strength aluminum alloys, in mid-2018.
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Braidy is in the process of raising US$500 million in equity capital and approximately $1.2 billion in debt capital for construction of the plant. The Commonwealth of Kentucky is putting US$15 million into the deal and provided significant economic incentives. The company also received a discounted fixed power rate from Kentucky Power, which is 50% lower.
The Braidy Atlas facility is expected to produce high quality aluminium sheet at roughly half the cost of most competitors in the U.S., Europe and Asia, enabling it to enter the aluminium sheet market in 2021 as the lowest-cost producer who would be able to offer an immediate price discount to customers.
Automotive and aerospace OEMs have committed to buy its entire output the next 7 years, under non-binding MOUs. Groundbreaking in Greenup took place in late May 2018.
Braidy is raising equity through a traditional private placement targeted at large, sophisticated institutional investors along with a smaller exempt “crowdfunding” offering. Braidy seeks to meet the requirements for a listing on the Nasdaq in 2019. The management is in discussions with a number of potential strategic investors who are attracted to Braidy’s plans to construct the Braidy Atlas aluminum rolling mill in the EastPark Industrial Center near Ashland and the commercialization of the Veloxint technology.
Braidy Industries will generate revenue by selling Veloxint parts, Veloxint powder and aluminum sheet from Braidy Atlas. The company expects to sell aluminium sheet to the automotive industry and other aluminium parts to tool companies, aircraft manufacturers, auto companies, military, and space exploration partners. The company also expects sell powder for 3D printing to military and aerospace companies.
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