Freemelt's Academic Alliances Ignite Growth in High-Temperature 3D Printing Markets

The additive manufacturing sector is undergoing a quiet revolution, driven by breakthroughs in materials science and the need for precision in extreme industrial applications. Freemelt AB (FMELT.ST), a Swedish leader in electron beam powder bed fusion (E-PBF) 3D printing, has positioned itself at the forefront of this shift. Recent orders from the University of Alabama and the Polytechnic University of Turin—both leveraging Freemelt's proprietary ProHeat™ technology—signal a strategic inflection point for the company. These academic partnerships are not merely sales transactions; they are catalysts for Freemelt's penetration of high-value markets, recurring revenue streams, and a pathway to its ambitious SEK 1 billion revenue target by 2030.

The Academic Catalyst: Universities as Launchpads for Industrial Adoption

Freemelt's recent order from the University of Alabama (U.S.) highlights its growing influence in North America. The SEK 4 million Freemelt ONE system will be used to research refractory metals like tungsten, which are critical for defense, aerospace, and energy sectors. These metals, capable of withstanding temperatures exceeding 3,000°C, are traditionally difficult to process using conventional manufacturing methods. Freemelt's E-PBF technology, however, enables complex geometries and material purity unattainable through legacy techniques—a competitive edge in markets like jet engine nozzles, nuclear reactor components, and hypersonic systems.

Meanwhile, the Polytechnic University of Turin's 2021 ProHeat™-equipped Freemelt ONE system has become a cornerstone of European materials innovation. The university's focus on gamma titanium aluminides (used in turbine blades) and advanced thermal treatments underscores ProHeat's versatility. By collaborating with academic pioneers, Freemelt gains a dual advantage: it accelerates its technology's validation in high-stakes applications while building a network of researchers who will advocate for its systems in industrial settings.

ProHeat™: The Secret Weapon for High-Temperature Dominance

ProHeat's thermal management capabilities are Freemelt's differentiator. The technology allows precise control of heat distribution during printing, enabling the processing of metals with melting points exceeding 2,500°C—a capability that competitors like Desktop Metal (DM) or SLM Solutions (SLM.DE) have yet to replicate at scale. This is particularly critical for defense contractors and energy firms, which require components that can withstand extreme environments.

The University of Alabama's tungsten research, for instance, could unlock applications in X-ray shielding for medical devices or armor plating for military vehicles. Freemelt's CEO, Daniel Gidlund, has framed these partnerships as “lighthouses” for future sales: demonstrating the technology's efficacy in niche markets first, then scaling to broader industrial adoption.

Recurring Revenues and Geographic Diversification: The Path to SEK 1B

Freemelt's growth model isn't just about hardware sales. The company's strategy hinges on a subscription-based ecosystem of software updates, spare parts, and consulting services—a model that already accounts for 15% of revenue. By 2030, this segment is projected to reach 25%, with academic institutions and industrial clients alike relying on Freemelt's expertise for process optimization and material development.

Geographically, the U.S. and European orders mark beachheads in two of the world's largest advanced manufacturing markets. Freemelt's 25 global installations, including nine in the U.S., suggest a deliberate play to dominate regions with high R&D spending and regulatory incentives for domestic industrial innovation. The U.S. Inflation Reduction Act's funding for clean energy and defense modernization could amplify demand for Freemelt's systems, as industries shift toward additive manufacturing to reduce waste and complexity.

Risks and Considerations

Freemelt's ambitions are not without hurdles. Competitors are racing to develop similar high-temperature capabilities, and the E-PBF market remains fragmented. Additionally, geopolitical tensions could disrupt supply chains for rare earth metals used in both printers and end products. Freemelt's reliance on academic partnerships also means slower near-term revenue growth compared to mass-market players.

Investment Thesis: Buy the Long Game

For investors with a 3–5 year horizon, Freemelt presents a compelling story. Its focus on high-margin, mission-critical applications aligns with secular trends in aerospace, defense, and renewable energy. The company's 2030 revenue target implies annual growth of ~25% from current levels—ambitious but achievable if ProHeat™ becomes the de facto standard for refractory metal printing.

The stock's current valuation (based on trailing revenues) suggests room for upside as service margins expand and geographic penetration accelerates. A key near-term catalyst will be the delivery of the University of Alabama system in Q2 2025 and subsequent industrial partnerships stemming from its research.

Conclusion

Freemelt's academic alliances are more than sales wins—they're a blueprint for owning the future of high-temperature additive manufacturing. By marrying cutting-edge technology with the credibility of top-tier research institutions, Freemelt is primed to dominate a niche with massive industrial relevance. For investors, this is a bet on a company that's not just selling machines but rewriting the rules of material science. In a world hungry for lighter, stronger, and more heat-resistant components, Freemelt's moment is now.

Recommendation: Buy Freemelt AB (FMELT.ST) with a 12–18 month price target of SEK 25–30 per share, assuming 20% annual revenue growth and margin expansion.