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JIOS Aerogel's Groundbreaking Partnership with Hyundai

JIOS Aerogel, recognized as a global leader in the production of silica aerogel technology, has recently made headlines with an important announcement regarding its partnership with Hyundai Motor Group. The company revealed its Korean manufacturing licensee has secured a significant contract aimed at supplying Thermal Blade® thermal runaway barriers for Hyundai and Kia's future electric vehicle models. This deal is particularly notable as it marks the first success under JIOS's innovative 'Hub & Spoke' business model, a strategic approach that facilitates manufacturing partnerships in the automotive realm.

The awarded contract was the result of a formal tender process held by Hyundai Motor Group, and it's expected that mass production will kick off by June 2027, with a substantial duration of 12 years planned for order fulfillment. This collaboration reflects JIOS's technology credibility at the high-end spectrum of the automotive industry and promises not only substantial order volumes but also a stable, revenue stream as Hyundai expands its electric vehicle offerings.

The Hub & Spoke Model

The recently introduced 'Hub & Spoke' model by JIOS centralizes the production of core aerogel powder at its facility in Korea, which serves as the Hub to maintain stringent quality and cost controls. In this framework, the proprietary powders produced in the Hub will then be distributed to a global network of licensees (the Spokes) who are responsible for producing high-volume Thermal Blade® products. This operational design enables JIOS to bolster regional supply chains, addressing localized production needs without the complexities and costs associated with establishing numerous downstream assembly plants on a global scale.

Stephen Kang, CEO and Co-Founder of JIOS, elaborated on the model by stating, "By separating upstream powder production from downstream assembly, JIOS can scale revenue without incurring the repeated heavy investments typically needed for new facilities." This strategy allows licensees to manage the local assembly processes while enabling JIOS to create a global network easily adaptable to geographical demands – a flexibility that teams with the rising global electric vehicle market.

A Step Toward Localized Manufacturing

JIOS's locations in both Singapore and Korea position the company well to assist automakers like Hyundai in reducing reliance on conventional supply chains. James Lee, Chairman and Co-Founder, affirmed that the geographical strategy aligns seamlessly with the industry's transition towards localized manufacturing close to end assembly points. The secured contract with Hyundai by JIOS’s licensee is seen as a success story that opens doors to finalizing similar partnerships with automotive manufacturers across other significant regions.

About JIOS Aerogel

Founded in 2013, JIOS Aerogel has quickly positioned itself as the leading producer of silica aerogel powder worldwide. The company is headquartered in Singapore and is on a mission to drive the adoption of aerogels, enhancing both safety and performance attributes of electric vehicle batteries. With its state-of-the-art technology recognized globally for mitigating thermal runaway in lithium-ion batteries, JIOS continues to innovate in creating efficient thermal solutions that offer crucial protection against excessive heat.

In conclusion, the partnership between JIOS Aerogel and Hyundai is not merely a transaction but a larger strategic move that could redefine sector standards in thermal management for electric vehicles. As the demand for EV technologies soars, JIOS is well-prepared to play a pivotal role in this evolving industry landscape.