Aspen Aerogels (ASPN) Barclays 38th Annual CEO Energy & Power Conference summary

Business overview and product differentiation

• Aerogel products offer superior thermal insulation, being 5-10 times more effective than alternatives, and are highly fire resistant with unique mechanical properties for EV applications.

• Initial applications included NASA spacesuits, later expanding to industrial energy insulation, LNG, and subsea pipelines.

• Proprietary manufacturing process enables flexible, durable aerogel forms suitable for various industrial and automotive uses.

• Demand in the energy sector has outpaced supply, prompting a shift to external manufacturing in China.

• The company has established a strong position in niche markets like subsea pipe insulation and carbon capture projects.

Manufacturing strategy and capacity expansion

• Manufacturing for the energy business was shifted from Rhode Island to China to meet growing demand and free up capacity for EV products.

• External manufacturing in China has improved product quality and enabled certification of more SKUs, supporting over $150 million in annual revenue.

• Full capacity in China is expected by Q4, with potential for further expansion and low double-digit annual growth in the energy segment.

• The company has leveraged existing assets to increase EV product capacity from $120 million to $500 million per year.

• Automated processes in Mexico support high-volume production of cell-to-cell barriers for EVs.

EV market entry and growth trajectory

• Entry into the EV market began with GM, supplying thermal barriers for all Ultium platform vehicles, with production ramping from $7 million to facilities producing 130,000 parts daily.

• The product provides significant safety and value, replacing less effective and potentially hazardous foams in battery packs.

• OEMs are increasingly focused on cell-level thermal management to enable higher energy density and longer range.

• The company is expanding its customer base, with new contracts from Audi, Stellantis, Porsche, and another German OEM starting in 2025.

• Positioned for growth in both the U.S. and Europe, targeting additional OEMs such as Ford, Volvo, and Korean manufacturers.