The NanoSteel ribbon-cutting ceremony and open house

How We Got the Money--NanoSteel

August / September 2006 By: Michelle Blacker Volume 4 Number 4

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Imagine military equipment that lasts twice as long in the field before needing repairs and resists corrosion in today's most demanding environments. Imagine reducing the potential of catastrophic failure of the space shuttle or rockets in our space program. Imagine aircraft engines that are stronger yet one-third lighter, creating substantial fuel efficiencies while improving safety. If parts last longer, are stronger and offer the potential for new, more efficient designs, the cost savings for existing systems is enormous and the potential for future designs expands exponentially.

In April 2003, the NanoSteel Company took its first step into the business world as an Idaho National Laboratory startup company. Its purpose was to commercialize a groundbreaking technology called Super Hard Steel—„, a new class of material that is unique because, when applied as a coating, it bonds to the material it's being applied to and, as a result, the metal becomes as hard or harder than existing hard materials, such as ceramics. In fact, Super Hard Steel achieves hardness properties that are among the highest ever reported for any metallic material or alloy.

Dr. Daniel James Branagan, a former materials staff scientist at INL and now the chief technical officer of the NanoSteel Company, developed the product while employed at INL. For years, Branagan worked on the idea of creating a material that could withstand wear and tear that current steel could not. Initial funding came from the Departments of Energy and Defense and the laboratory. Once the technology was ready to be commercialized, the lab planned for a startup company and looked for an investor to market Super Hard Steel. The biggest help in finding an investor came in receiving a R&D 100 Award in 2001. Shortly thereafter, INL created a partnership with Milcom Technologies, a venture-backed company that conceives, creates and launches technology companies. Through this partnership, the NanoSteel Company was created and a license to commercialize Super Hard Steel was obtained.

Since the company's beginnings, the IPO Group, Ervin Industries and Enertech Ventures have contributed to the growth of company. Recently, Enertech Ventures contributed $10 million for the fourth and final round of financing. The commercialization of the product has created new jobs, which has positively impacted the community and public sector in at least four states. The company is headquartered in Florida, with an R&D facility in Idaho Falls and manufacturing facilities in Michigan and Ohio. Super Hard Steel competes effectively with other products and the profit margins are significant. It is forecast that by 2007, the product will generate revenues exceeding $41 million for the NanoSteel Company.

Michelle Blacker is a communications specialist at Idaho National Laboratory.