Aurora Labs (ASX:A3D) has announced that it has executed a memorandum of understanding with Swedish aluminium technology company Granges AG.
The statement says this MoU, which will operate for up to five years, provides a framework for: pre-order of an Aurora RMP-1 (which the Australian company expects to be selling by the end of the year), supply of proprietary aluminium powder from Granges to Aurora, engagement of Aurora for R&D on additive manufacturing with aluminium, and collaborative market research for application of aluminium in automotive and other industries.
Aurora is headquartered in Bibra Lake, Perth, and is bringing to market a process it calls Multilevel Concurrent Printing, allowing printing on more than one level of metal powder at once. It announced in early May that it had undertaken a live production test with a beta version of its RMP-1 machine, which uses MCP, and was in preliminary discussions with an unnamed industry partner on the sale or lease of the printer.
Granges’ focus is on rolled aluminium products “for heat exchangers and selected niche applications” and according to its website every second car produced, worldwide, contains a part manufactured by Granges. It has five factories in Sweden, China and the US.
Aurora managing director David Budge said he expected “enormous growth” in coming years for additive manufacturing in automotive.
“The proposed transactions, if consummated, could potentially be worth up to approximately US$7.75m in revenue to Aurora,” he said.
“Further, if Gränges purchases one of our RMP-1s, it will lead to some exciting and innovative developments in both the internal combustion engine and electric vehicle markets.”
Aurora’s shares are trading at $0.390 at 2 pm on Wednesday (Sydney time).
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