The Next Evolution In Power: Adaptive Materials

During the Second World War, few U.S. cities did as much to secure an Allied victory as Detroit. The city's famous assembly lines suspended automobile production and churned out M-5 tanks, Jeeps, and B-24 bombers, which were rushed where they were needed on a novel freeway system created specifically to speed the war effort. The gorgeous Guardian Building on Griswold Avenue downtown was converted into a control center for war production. Two hundred thousand Detroiters served in the armed forces, while an additional 100,000 volunteered as firefighters, air raid wardens, and other wartime emergency workers. The seemingly inexhaustible energies of the city led President Roosevelt to dub Detroit "the Arsenal of Democracy."

Seventy years later, the nature of war — and consequently wartime production — has changed dramatically, but an Ann Arbor company is carrying on the region's legacy as a buttress of military preparedness. Adaptive Materials, Inc. (AMI), which was co-founded in 2000 by husband-and-wife team Aaron and Michelle Crumm, makes portable 25-to-250 watt fuel cell systems that produce electricity from propane. The fuel cells, which reduce carbon emissions, run up to ten times longer than batteries, and reduce the environmental impact associated with the disposal of conventional batteries, have proved an innovative solution to the military's need for portable power (and have promising commercial applications, as well).

The benefits of fuel cells over conventional batteries are startling. AMI's systems will power the flight of hand-launched unmanned aerial vehicles, which are critical to reconnaissance, for up to 24 hours — a dramatic improvement over the 90-minutes of flight time conventional batteries allow. And consider this: a soldier typically carries some 30 pounds of batteries on a 40-hour mission to power night vision monocles, GPS and communications equipment, small stoves, and other devices. But using an AMI fuel cell system, a soldier can get through the same 40-hour mission with just one five-pound propane tank. Soldiers may still carry 30-pound packs, notes Michelle, but they'll have more room for food, ammunition, first aid materials, and other necessities.

AMI's fuel cells grew out of work Aaron did while a University of Michigan material science doctoral student that involved using ceramic powder to make microscale objects. Ultimately, he says "we took technology that had traditionally been reserved for high-power generation and figured out how to miniaturize it and make it portable." The company got its start with a $1 million grant, and since that time it has raised over $32 million to fund its work through government agencies such as the Defense Advanced Research Projects Agency ("the cowboys" of the Defense Department, jokes Michelle, alluding to its role in funding high-risk, high-return research). It has also outgrown 600- and 10,000 square-foot spaces (it quadrupled its space in February when it moved into a former airbag manufacturing plant) and grown its staff from a half-dozen employees to 64. What's more, it has grown 400% in revenue over the past four years and anticipates adding 100 new employees over the next five years.

Michelle is quick to note that AMI provides "an enabling technology," and that its biggest achievement will be helping other products that empower the military and consumers reach the market.

"Our system is like two AA batteries on your desk," notes Michelle, who received an MBA from the University of Michigan. "They don't help you at all — it's only what they power that helps you. So we're only as good as the applications we power."

In just a few months, AMI will begin servicing the boating market, which is looking for green technologies that are environmentally friendly, lack the fetid smell of generators, and weigh less (which is of particular importance in racing). And as Michelle notes, "most boats have propane on board for cooking, so they already use our fuel of choice."

AMI is also steering its business to the emergency preparedness sector, says Michelle, who's an avid supporter of the American Red Cross. The company is partnering with iRobot Corporation to develop fuel cell-powered unmanned ground vehicles that can enter unstable buildings after earthquakes and search for survivors for up 24 hours without need for more fuel. Propane-powered fuel cells, if adopted by emergency preparedness officials, would allow them to charge communication devices when electricity goes out during natural disasters, she notes.

"I think Adaptive Materials can make a huge impact on disaster relief efforts," she says. "I see our products making those jobs easier."

From the very start, says Michelle, AMI's goal was to avoid getting sidetracked with models and presentations and analysis and get down to the business of manufacturing. It was one of the main reasons the couple kept their business in Southeast Michigan, says Michelle, adding simply: "People in Michigan know manufacturing. They know how make a bazillion parts per minute at a good price."

Now that they've taken up roots, they take the continued solvency of their company very seriously.

"My husband grew up in Flint and he really saw the downturn in Southeast Michigan at a very deep level," says Michelle, who hails from Indiana. "I have so much respect for social responsibility, and that's huge when it comes to a company. One piece of that is giving people real jobs with real benefits. We respect our employees and the fact that they're people with mortgages and families and cars. I'm completely humbled and proud to make the decisions that help them keep their jobs every day. I think about it constantly."

AMI has found Michigan an extremely supportive environment for business, Michelle says. In 2006, it was awarded a $6.27 million loan through Michigan's 21st Century Jobs fund to commercialize grid-independent chargers for consumer battery-operated electronics including laptops, medical devices, and cordless tools. It also works closely with Michigan Works — the nation's largest workforce development association — which Michelle says "acts as another HR arm" for AMI, helping the company find technicians and giving it training dollars to help its new employees make the transition to a new field.

Michelle and Aaron, who met at Purdue University while working respectively on bachelor's degrees in accounting and nuclear engineering, are Midwesterners and say they're happy to be settled here. And what's it like to run a business with a spouse? The couple, who've been married 13 years and have three children, appear to be thriving.

"Our conversations are hysterical because it all rolls into one big life," says Michelle. "One second we're talking about potty training our toddler and the next we're asking whether an order went through. It's usually one big sentence without a period."

Says Aaron, "I really enjoy it because I have a life partner and a business partner whom I implicitly trust and someone who complements my skill sets perfectly." That's not to say they haven't developed the other's skills — albeit in an informal manner. "I've been to the business school of hard knocks and she's been to the science and engineering school of hard knocks," Aaron adds.

And as he points out, "If we can raise kids, running a business is a piece of cake."