Avoiding involution, Elon Musk’s SpaceX leverages 3D printing

▲ Accelerate the technical development of Raptor3
© SpaceX

Elon Musk’s view on additive manufacturing is that it is not only the future of manufacturing, but also a key technology to realize his vision of space exploration. With this technology, SpaceX continues to push the boundaries of design to create more efficient, reliable and cost-effective products. ”

Intellectual property licenses
is part of the company’s competitive advantage

Recently, SpaceX and Velo3D entered into a major intellectual property licensing and support services agreement worth a total of US$8 million. As part of the agreement, SpaceX will receive a non-exclusive license to Velo3D additive manufacturing technology, as well as a range of engineering and support services. This technology plays a key role for SpaceX in building its advanced Raptor engines, particularly the recently tested Raptor 3 engine.

Velo3D technology allows SpaceX to manufacture complex rocket engine parts that are highly complex in design and functionality. Through this agreement, SpaceX will not only be able to use Velo3D technology, but also modify and develop it to meet the needs of its internal operations. This includes applications in the manufacturing process of rocket and spacecraft components. Velo3D will retain ownership of its technology and continue to control external distribution of the technology, while SpaceX will retain ownership of improvements made to the technology during its use.

According to 3D Science Valley market analyses, this cooperation agreement includes several key points:

• License fees:SpaceX will pay $5 million for a perpetual, non-exclusive, royalty-free license to Velo3D technology.
• Technical improvements:SpaceX reserves the right to modify and improve Velo3D technology, but only for internal use.
• intellectual property:Velo3D retains ownership of its intellectual property rights, including any improvements made during the 12 months following the date the Agreement comes into force.
• Sublicense rights:SpaceX may sublicense Velo3D technology to affiliates or non-competing third parties under certain conditions.
• Support Services:Velo3D will provide technical support services to SpaceX to help it effectively integrate Velo3D technology.
• Additional service fees:In addition to the licensing fee, SpaceX will pay $3 million for support services provided by Velo3D.

The agreement also gives SpaceX the right to sublicense Velo3D technology under certain conditions. Specifically, SpaceX may sublicense the technology to affiliates or third parties, provided that such third parties are not competitors of Velo3D. The sublicense must be limited to providing services to SpaceX itself, meaning that the entity receiving the sublicense cannot use the technology for independent purposes outside of SpaceX’s business.

Additionally, Velo3D will provide necessary support services to SpaceX to help SpaceX effectively integrate and utilize Velo3D technology. These services may include technical assistance and technical advice to ensure that SpaceX can fully utilize Velo3D technology. In exchange, SpaceX will pay Velo3D a total of $8 million, of which $5 million will be a technology licensing fee and an additional $3 million will be used to purchase support services.

More mutually beneficial cooperation

In business competition, Party A often tightens Party B’s prices and payment terms, leading to a continuous decline in Party B’s profits and cash flow dilemmas, such as demolishing a thing for pay the other. There is no winner at the end of involution when fishing in a dry lake. So, is there some sort of cooperation? It is not that Party A corners Party B in a corner in one dimension, but through in-depth cooperation between Party A and Party B, Party A can achieve faster and more personalized technical advantages, while Party B can further improve its technology and guarantee its cash flow?

In this regard, SpaceX has set an example for the industry.

This cooperation is not only of great significance for SpaceX in the manufacturing of rocket engines, but also shows Velo3D’s technical strength and market position in the field of additive manufacturing. Through this collaboration, both companies will be able to drive the development and application of technology in their respective fields.

According to market information from 3D Science Valley, the cooperation model between Velo3D and SpaceX could have many positive impacts on the long-term development of Velo3D:

• Financial stability:Through its partnership agreement with SpaceX, Velo3D received a significant capital infusion, which helped the company maintain its operational and financial stability in the face of market challenges. This financial support could allow the company to continue to invest in R&D and develop its production capacities.
• Technological improvement and innovation:Under the terms of the agreement, SpaceX can modify and improve Velo3D’s technology, which could promote Velo3D’s technological advancement in the field of metal additive manufacturing. At the same time, Velo3D retains ownership of its intellectual property rights, including any improvements made to its technology within 12 months of the agreement taking effect, which helps Velo3D maintain its technological leadership.
• Improved market position:The cooperation with SpaceX has improved Velo3D’s visibility and market position in the additive manufacturing industry. This partnership could attract other potential customers or partners, thereby increasing Velo3D’s market share.
• Validation of the economic model:Velo3D verified the effectiveness of its business model and market strategy through its cooperation with SpaceX. This collaboration provides the company with a platform to showcase its technological prowess and manufacturing capabilities, thereby helping to build confidence among investors and other stakeholders.
• Long-term strategic planning:Velo3D can use this collaboration as a springboard to further plan its long-term strategy, including product development, market expansion and possible strategic collaborations. This forward planning is essential to its continued growth and success.

Of course, while cooperation brings many positive effects, it can also present some potential challenges, such as increased dependence on a single client, the risk of technology leakage, and intellectual property disputes that can arise during the cooperation.

According to market information from 3D Science Valley, the cooperation between Velo3D and SpaceX will bring multiple technical improvements to Velo3D in the foreseeable future:

• Touchless Powder Spreading Technology Improvements:Velo3D is known for its innovative non-contact powder coating technology, essential for achieving high-quality builds, especially supportless metal 3D printing. Depending on the design needs of SpaceX’s new products, this technology could be further improved for SpaceX in the manufacturing process of its rocket and spacecraft components.
• Part performance improvements:Velo3D’s technology can help SpaceX optimize part designs to meet the high standards of the space exploration industry. Additionally, Velo3D has deployed a catalog of next-generation alloys to improve part performance by optimizing materials based on SpaceX’s real-world needs.
• Enhanced AI Simulation Capabilities:Velo3D’s collaboration with PhysicsX provides Velo3D customers with an AI simulation workflow based on real-world SpaceX application scenarios to accelerate simulation cycles, improve simulation fidelity, and algorithmically explore design spaces complex to unlock new levels of performance.

3D Science Valley believes that the cooperation between Velo3D and SpaceX will have a positive impact on its long-term development and will also bring new ideas to the overall competition in the 3D printing industry, putting the thinking on the ecological cooperation of the industry on the agenda, and move from blind involution to more cooperation. A healthy development path created through co-creation.