KULR Technology Group today announced a joint development collaboration with a leading global battery‑cell manufacturer to co‑develop the KULR ONE® MAX Battery Backup Unit (BBU) for AI‑scale data centers and high‑power compute environments. The partnership targets a commercial program with an estimated value of up to $100 million and secures a long‑term supply of ultra‑high‑power 21700 cells for the entire life of the program.
Under the agreement, KULR will lead the design, development, safety engineering and UL certification of the BBU architecture, while the cell partner will provide cell‑level integration and technical resources. KULR will supply system‑level architecture, thermal‑management engineering and propagation‑resistance design, creating a product that blends KULR’s safety expertise with the cell partner’s high‑energy‑density platform.
KULR’s recent financials show strong revenue growth but sharp margin compression. In Q3 2025 revenue rose 116% to $6.88 million, yet gross margin fell to 9% from 71% a year earlier, driven by higher costs and the non‑recognition of revenue from a defaulted customer. In Q1 2025 revenue increased 40% to $2.45 million, with gross margin at 8% versus 29% in the prior year, largely due to unanticipated labor hours needed to complete technical projects. The company reported a net loss of $7.0 million in Q3 2025 and has been allocating excess cash to Bitcoin acquisition and mining as part of its treasury strategy.
CEO Michael Mo emphasized the strategic importance of the partnership: “AI‑scale computing is fundamentally reshaping how data centers think about power, safety and reliability. Integrated battery backup is becoming a core requirement, and this collaboration positions KULR to deliver a safety‑first solution that meets the needs of hyperscalers, cloud providers and system integrators.” He added that the joint‑development program “creates long‑term strategic lock‑in with AI server manufacturers and cloud platforms.”
The announcement was met with positive investor sentiment, reflecting enthusiasm for KULR’s entry into the high‑growth AI data‑center market. However, analysts and investors remain mindful of the company’s margin compression and ongoing net losses, which underscore the need for continued cost discipline and efficient scaling of the new product line.
The collaboration represents a strategic pivot for KULR, aligning its core competencies in thermal management and safety engineering with the rapidly expanding demand for AI‑scale power solutions. By securing a long‑term cell supply and a clear commercial pathway, KULR is positioning itself to capture a share of the growing AI infrastructure market while addressing its current profitability challenges.
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