The first company to produce cadmium-free quantum dots for use in LED TVs, solar cells and biological imaging will start commercial production next year.
British firm Nanoco Group said production would take place at the South Korean manufacturing plant of its partner Dow Chemical, which holds exclusive worldwide rights for the sale of the company's quantum dots for use in electronic displays, in the first half of 2015.
Nanoco is the only producer of quantum dots – semiconductor nanocrystals which exhibit certain quantum mechanical properties that make them particularly useful for displays – that contain no cadmium, a toxic-heavy metal banned for use in commercial products in many countries.
"We believe Nanoco is today on the threshold of major growth in its revenues, earnings and cash flows," Liberum analysts Eoin Lambe and Janardan Menon said in a note.
Dow said it would begin construction of the plant to make the components using Nanoco's technology at its Cheonan site. The analysts said Dow was probably waiting for volume commitment from a customer before installing equipment, and such commitment has now been received.
"While neither Dow nor Nanoco have provided any information, we believe the commitment is likely to have been from one of the two major Korean TV vendors," they said.