Apple Plans Next Materials RevolutionApple Plans Next Materials Revolution

Apple may have found a solution to widely reported receptionproblems for its latest iPhone. Earlierthis month, Apple bought all rights to commercialize a new metals technologyfor consumer electronics applications.

LiquidmetalTechnologies of Rancho Santa Margarita, CA, granted Apple a perpetual,worldwide, fully paid exclusive license to commercialize its intellectualproperty in the field of consumer electronic products in exchange for a licensefee.

The intellectual property refers to the development ofliquid amorphous metals, also called "metallic glass," which were firstreported by scientists at the University of California in 1960. Amorphous metal technology is said to combinethe mechanical benefits of metals with the processing benefits of plastics.

Liquidmetal was established in 2003 to commercialize thetechnology, which may still require significant investment by Apple to make it fullyprocessable like a plastic. The payoff would be huge - a housing for portableelectronics devices that would provide the strength and electrical propertiesof metals with the ability to quickly produce components with complex shapes.

It's not known which cocktail of metals from Liquidmetal Applemay pursue for its electronic applications. One of the first commercial alloysdeveloped at Caltech contained zirconium, titanium, copper, nickel andberyllium.

Most metals crystallize when cooled. Caltech researchers,however, discovered that certain metals remain amorphous if cooled in specialways. Amorphous materials such as glass can be brittle - one of the issuesApple researchers may need to address.

The latest model of the iPhone featured a metal antenna thatsurrounded the outside of the device. The design played to Apple's strengths - thenew model is thin and light. But technical problems may have been the impetusfor investment in a major new materials technology.

Liquidmetal Technologies retains the rights to commercializethe technology for other markets, such as defense, where it was granted a newpatent for composite armor in 2009. Another major market may be devices formedical applications.

"We believe that the unique properties of bulk Liquidmetalalloys provide a combination of performance and cost benefits that could makethem a desirable replacement to incumbent materials, such as stainless steeland titanium, currently used in various medical device applications," thecompany said in its most recently filed 10-K financial statement with theSecurities and Exchange Commission.

One reason why Liquidmetal may have sold such extraordinaryaccess to its technology could be financial.

The company has experienced significant operating lossessince its inception. The net loss for the fiscal years ending Dec. 31, 2008,2007 and 2006, was $6.6 million, $5.6 million, and $14.5 million, respectively.Liquidmetal had an accumulated deficit of approximately $162.3 million at Dec.31, 2008. Part of the deficit was attributable to losses generated bydiscontinued equipment manufacturing and retail golf operations.

Officials at Apple nor Liquidmetal Technologies could bereached immediately for comment.