KULR Technology Group announced a five‑year, $30 million preferred battery supply agreement with Miami‑based Caban Energy, a renewable‑energy services provider focused on critical infrastructure. The contract will generate revenue for KULR beginning in 2026 and is backed by the company’s newly acquired Plano, Texas manufacturing assets.
The acquisition of Caban’s Plano facility gives KULR a domestic production base that can scale to meet the growing demand for ultra‑high‑power lithium‑ion systems in hyperscale AI data centers, telecom infrastructure, and defense applications. The plant’s capacity and advanced carbon‑fiber thermal‑management technology position KULR to deliver end‑to‑end battery solutions that combine high‑performance cells with Caban’s energy‑as‑a‑service model, creating a differentiated offering for mission‑critical networks.
Financially, the deal represents a significant revenue stream for a company that has struggled with margin compression. KULR’s gross margin fell from 37% in Q2 2023 to 24% in Q2 2024, and further to 18% in Q2 2025, largely due to higher raw‑material costs and investments in new manufacturing capacity. The $30 million contract will add a predictable, multi‑year revenue stream that could help stabilize margins if the company can maintain its cost discipline and leverage the new plant’s efficiencies.
The agreement also diversifies KULR’s customer base, which had been heavily concentrated in a single large client. By securing a multi‑year contract with Caban, KULR reduces revenue concentration risk and positions itself to capture additional market share in high‑growth verticals. Management expects the deal to contribute to 2026 revenue growth, though the company has not yet provided explicit guidance for that year.
CEO Michael Mo highlighted the strategic importance of the partnership, noting that “the supplier award and the addition of manufacturing assets are timely and important steps as we continue to scale into fast‑growing global markets.” Analysts have responded positively to the announcement, citing the deal’s potential to strengthen KULR’s revenue pipeline and manufacturing capabilities.
The market reaction was driven primarily by the $30 million, five‑year agreement and the acquisition of the Plano manufacturing assets, both of which address long‑standing concerns about revenue diversification and production capacity. Investors view the deal as a meaningful step toward achieving sustainable growth in the battery‑storage market.
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