The investment will help the high-performance materials company further expand its product offerings across consumer electronics, electric vehicles, and fuel cell applications

November 3, 2022

BILLERICA, Mass.—High-performance materials developer Boston Materials recently raised a $12 million Series A2 funding round, led by Good Growth Capital, to support its continued growth. The round also includes new strategic investors GS Group and PTT Global Chemical, which will provide important supply chain relationships and unlock customers in new geographical regions, the company said in a release.

The investment follows the recent news of Boston Materials’ partnership with Textron on supplying lightweight materials for aerospace applications. Boston Materials said the new funds will support its efforts to increase manufacturing and engineering operations at its new factory in Billerica, and to expand product adoption with existing and new customers.

“We’re thrilled to partner with Good Growth Capital, GS Group, and PTT Global Chemical, along with our existing investors, as we enter this exciting phase of rapid growth,” said Anvesh Gurijala, CEO of Boston Materials, in a statement. “We have successfully piloted new game-changing products with leaders in consumer electronics, electric vehicles, and fuel cells. By incorporating a Boston Materials product, our customers have experienced extraordinary results. Noteworthy examples include a fifteen-fold increase in product lifespan and unlocking a five-fold reduction in Scope 3 emissions. This new investment will enable us to expand upon this work to scale and support rapid adoption.”

Boston Materials is known for its patented Z-axis Fiber™ technology, a lightweight material produced from 100 percent reclaimed carbon fiber with significant energy dissipation properties. The company said it enables manufacturers of industrial and consumer products to create highly differentiated, energy-efficient products that have a low carbon footprint. The manufacturing scale of Z-axis Fiber enables Boston Materials to formulate products for a wide range of applications that are cost-effective to deploy at high volumes, according to the release.

The company said that a global emphasis on decarbonization in transportation and the proliferation of industrial and consumer electronic devices has reinforced demand for its technology. With more brands continuing to focus on delivering quality, sustainable products to customers, Boston Materials’ Z-axis Fiber is said to enable manufacturers to meet those needs.

Currently, Z-axis Fiber has an addressable market of more than $450 billion, with applications including weight reduction of automobiles, improving the performance and reliability of electronics through efficient thermal management, reducing the weight and cost of hydrogen fuel cells for clean transportation, and more, the company said.

“Boston Materials has a differentiated technology with many high-value applications for multiple growth sectors,” said David Mendez, managing partner at Good Growth Capital, in the release. “Based on the breakthrough results that customers of Boston Materials have experienced, we believe the company will continue to unlock new frontiers across the electronics and transportation sectors and beyond.”

Strategic investors GS Group and PTT Global Chemical are expected to provide important supply chain relationships and access to customers in new regions. Both organizations see tremendous value in Boston Materials’ Z-axis Fiber technology in enabling decarbonization and improved sustainability across the energy, electronics, and transportation sectors, the company said.

“Boston Materials’ commercial focus in thermal management and hydrogen fuel cells highly aligns with GS Group, considering our interests within the energy sector, and the current demand for innovations in clean energy within the South Korean market,” said Taehong Huh, managing partner at GS Futures, the corporate venture capital arm of GS Group, in the release. “As a Fortune Global 500 organization with annual sales of US$44 billion and business presence across 32 countries, GS Group is a global leader with diversified operations spanning energy, utility, retail, and infrastructure.”

PTT Global Chemical was ranked as the number one leader in the chemical sector by the Dow Jones Sustainability Index for four consecutive years, according to the release.

“PTT Global Chemical has a deep understanding of the important role of performance materials as a solution for the global needs on decarbonization and sustainability,” said Kamel Ramdani, CTO at PTT Global Chemical (PTTGC) and President of GC Ventures America, in the release. “As Boston Materials dives into automotive and electronics, we see great potential and unique values for new initiatives within PTTGC’s ecosystem, and differentiated solutions to support our composites platform.”

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