Why We Invested: Alloy Enterprises
Today you can find aluminum in everything around you, from your phone, to your car, from wearables and small devices to large industrial equipment. Aluminum’s unique properties make it a crucial material in modern manufacturing- it has an exceptional strength to weight ratio, which means it can be used on applications where both weight and strength are important, like in electric vehicles and aerospace. It is also infinitely recyclable and has great thermal conductivity properties.
Demand for aluminum is expected to increase by ~50% by the end of the decade, driven mostly by the energy transition and the need to use lightweight materials. However, despite increasing demand for aluminum for use in electric vehicles, airplanes, and industrial parts, Aluminum Additive Manufacturing (AM) technologies have not served the market sufficiently due to high costs and low throughput.
Today’s manufacturers want the advantages of 3D printing, including complex geometries, conformal cooling channels, and freedom from expensive tooling. The problem today is that aluminum, especially high strength alloys, may not be printed using powder bed processes, which weren’t created with aluminum in mind. Powder bed processes require multiple steps — and aluminum powder is complicated to work with, mostly because it is highly flammable and can form explosive mixtures in the air.
Despite booming demand for high throughput, fully dense aluminum parts, the U.S. aluminum industry now comprises less than six primary aluminum smelters, two percent of the world’s capacity, down from more than 20 smelters and 30 percent of global production during the 1980s.
Reviving U.S. production with a step-change in aluminum production
What if there were a revolutionary new process for delivering complex aluminum components quickly and at scale, one that could help America take a leading role in more cleanly produced aluminum as part of a revival of U.S. manufacturing? What if it carried none of the risks of aluminum powder while delivering parts with short lead times, significant cost reductions, and on-demand manufacturing?
At Piva, we work hard to solve the world’s biggest challenges, including our struggling supply chains and the need for advanced manufacturing techniques, especially as the world electrifies. From passenger airplanes to EVs, aluminum is a foundational industrial material that modern society needs to function. For these reasons, we are thrilled to lead the $26 million oversubscribed Series A funding round in Digital Aluminum Fab Alloy Enterprises.
There are several reasons why we are excited to invest in Alloy. The company’s customer focus recognizes that many customers want to buy parts, not high-end, expensive 3D printers. To supply customers with much-needed parts, the founders uniquely utilized a little-known yet highly efficient process, selective diffusion bonding, for delivering aluminum components quickly and at scale. Inspired by laminated object manufacturing, selective diffusion bonding uses sheets of aluminum to build parts layer-by-layer. The feedstock material is safe for operators to handle, can be stored as easily as traditional stock, and is infinitely recyclable.
Within a year of invention, Alloy was making parts using their novel additive manufacturing system to produce fully dense aluminum parts, enabling manufacturers to scale from prototyping to production. From digital design file to part, Alloy’s process is up to 25X faster than existing additive technologies, allowing for rapid iterations and production level throughput. With this funding, they will be able to rapidly scale and expand production.
A stellar team
We are constantly impressed by co-Founder and CEO Dr. Ali Forsyth, who is as brilliant as she is hardworking. She is a startup veteran having led engineering teams for many successful companies, including Desktop Metal (NYSE: DM) and Open Water Power (NYSE: LHX). She holds a Ph.D. in Engineering Sciences from Harvard University. Ali and her entire team think differently, not in incremental advancements but in step changes intended to revolutionize their industry and drive exceptional company growth.
Parting thoughts
We’re proud to back Ali and her team at Alloy, a company that is poised to disrupt aluminum production, directly benefiting EV, aircraft, and industrial manufacturers. Alloy is painting a promising picture for American aluminum manufacturing at a time when the demand for more efficient processes has become a critical supply-chain chokepoint.
