Stronger prospects ahead for alloy allies

Amorphous metal expertise gives Eontec a head start in expansion

Mention of "amorphous alloys" may not ring a bell, but if you consider Huawei smartphone frame hinges or Tesla car door lock cases, you will get a sense of how widespread their applications are. It is something that Dongguan Eontec Co is well aware of and keen to exploit on a global scale.

"I believe 2017 will mark the beginning of a golden era for the amorphous metals industry. Eontec aims to be a respected company in the world," says Li Yangde, chairman of the new materials company, which is based in Guangdong province and listed on the Shenzhen Stock Exchange.

In November, Li led Eontec to a controlling 46 percent stake in California-based Liquidmetal Technologies Inc. This is expected to benefit both companies, according to a report by Essence Securities.

In March last year, Eontec initially bought an 18 percent stake in Liquidmetal. It then spent $55 million for an additional 28 percent stake, which also saw Li becoming Liquidmetal's CEO in December.

From Eontec's perspective, the investment is worth every dollar spent, since Liquidmetal specializes in the research, development and commercialization of amorphous metals - expertise that would complement Eontec's strengths.

Eontoc is the only company in the world that can produce molding for bulk metallic glasses (another name for amorphous alloys), which are used in the consumer electronics, automotive and healthcare sectors.

The alloys combine a number of desirable material features, including high tensile strength, excellent corrosion resistance, very high coefficient of restitution and excellent anti-wearing characteristics. A typical alloy is almost 1.5 times harder than stainless steel and about 2.5 times stronger than titanium.

"We are now planning to enter the US market and become a leading player," says Li.

Such ambition stems from Liquidmetal's strong patent portfolio, high reputation and reasonable prices. Liquidmetal has 128 patents in the United States.

Abdi Mahamedi, former chairman of Liquidmetal, says the company has invested substantially in the development of new processes and technologies like injection molding, as well as in developing relationships with customers outside the conventional application areas.

So, Liquidmental has potential customers even in segments like consumer electronics, surgical and medical equipment and aerospace.

"Liquidmetal needed more capital and size to commercialize its efforts. It also needed a low-cost manufacturing partner, both of which Eontec brings to the table now," says Mahamedi.

So far, Liquidmetal's technology can produce only smaller precision parts weighing less than 100 grams each, Mahamedi says. Since Eontec is capable of manufacturing larger parts, their partnership will create a more diverse range of parts made of amorphous alloys as well as a large base of customers.

Eontec's mature technology and cost-effective materials could help turn the loss-making Liquidmental profitable. Although Liquidmetal's losses started in 2012, its patents, sales network and brand equity will likely make Eontec a global player.

"Eontec will step up the pace of integration with Liquidmetal. We'll bring Eontec's experience in manufacturing to Liquidmetal. We'll expand the application of amorphous alloys to areas like consumer electronics, automotive, medical equipment and sports goods," says Li.

Eontec is already eyeing potential opportunities in the automotive, healthcare and aerospace industries. What's more, since 2015, US automaker Tesla has been using Eontech's amorphous metals in its car door-lock cases.

"Tesla's door-lock cases have a strong impact resistance. This helps them withstand opening and closing of car doors tens of thousands of times," says Li. "Although this business is still small, we have confidence the future will be brighter."

caixiao@chinadaily.com.cn

(China Daily European Weekly 04/14/2017 page25)