The company’s shares were trading 8% higher intra-day, at A$0.135.
Fastbrick’s “Hadrian X” bricklaying robot can lay up to 1,000 bricks per hour using a boom which is mounted on a truck.
The robot can handle different brick sizes and complete all of the cutting, grinding, milling and routing of the bricks prior to laying.
The construction of Hadrian X commercial prototype continues to advance and is on track to be competed in CY2017.
The agreement with Caterpillar establishes a strategic alliance board with representatives from both the companies developing a framework to offer this technology to Caterpillar’s construction customers.
The agreement has an initial 12-month term during which Fastbrick has agreed to deal exclusively with Caterpillar for the development and potential commercialisation of the technology.
Simultaneous with the signing of the agreement, Caterpillar, through a wholly owned subsidiary, is investing USD$2 million in Fastbrick via a placement of shares at A$0.10 each.
Caterpillar will also have an option to invest a further USD$8 million in Fastbrick at an issue price of A$0.20 per share.
With 80% of the cost of brick construction attributed to manual bricklaying labour, the global addressable market for the Hadrian X is estimated to be $100 to $200 billion.