Cymat Technologies Ltd. announced that it has entered into a component development agreement with a global automotive manufacturer Cymat, together with its design partner Tesseract Structural Innovations Inc. has been retained to re-design a structural element (14 parts) within an existing electric vehicle battery enclosure. By integrating SmartMetalTM - Cymat's proprietary aluminum foam - into the component, the new design is expected to optimize performance by reducing weight, improving crash resistance, minimizing manufacturing complexity and creating cost savings for the OEM. This opportunity is the culmination of almost a year's work of exploring potential solutions for the OEMs challenges with EV battery enclosure systems. The first phase of the agreement stipulates the completion of conceptual design together with the verification of performance through computer simulation.

Subsequently, Cymat will be required to produce physical prototypes for the OEM to validate these simulation results. Once physical crash testing by the OEM is successfully completed and other production/pricing related issues agreed to, Cymat expects to receive a serial production contract. As this component is common to a number of vehicle platforms and would be treated as a running change, the potential volume of SmartMetalTM together with the compressed timeline to production, management views this opportunity as being transformational for Cymat.

The OEM has also indicated an interest in having Cymat/Tesseract evaluate other elements of their battery enclosure for performance enhancement.