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Home » Waterloo » Alchemy: How a Local Startup is Shaping Defense Technology
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Alchemy: How a Local Startup is Shaping Defense Technology

February 19, 20267 Mins Read
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Alchemy: How a Local Startup is Shaping Defense Technology
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The “Made by Waterloo:” series highlights creative startups launched by University of Waterloo graduates and researchers that are pushing Canada’s economy forward. These businesses, nurtured in the area’s thriving tech ecosystem, are making meaningful impacts both locally and globally. Through this series, we showcase how Waterloo and these homegrown companies are promoting prosperity by attracting, developing, and keeping the talent essential for boosting Canada’s economic growth.

Located in the center of Waterloo region’s innovation district, Alchemy demonstrates how a startup can grow into a successful global enterprise with local talent support. What started as a final-year project for a group of Faculty of Engineering students – intended as a spray to stop frost from forming on windshields – turned into a camouflage coating utilized by the Canadian Armed Forces.

 

“We focus on the practical applications of nanotechnology,” says Khanjan Desai (BASc ’13), co-founder and CEO of Alchemy. “With a complete product line currently available in the market, we’re working on something no one else has done before: providing high-quality, easy-to-install windshield protection films all in one package.”

 

Alchemy

Alchemy’s Exoshield windshield protection film being installed at the Guelph Detailing Company. Photo credit: Alchemy

Alchemy’s solution for car owners features their “Endurance Class” nanoceramic coating that provides windshield protection films capable of preventing stone chips and scratches. While developing nanoparticles for their Exo Shield line, the team found out that their products could interact with thermal infrared radiation, which is used for thermal camouflage in military settings. This discovery opened new doors for Alchemy within the defense sector.

A growing partnership with the Canadian Armed Forces

In 2019, Canada’s Department of Research and Development Canada (DRDC) looked for technologies focused on managing thermal infrared signatures through its IDEa S program. Alchemy’s defense solution, utilizing their “Crypsis Class” nanocomposite coating, was designed to hide uniforms from detection in various operational environments. The company received a $1 million contract to further develop this technology specifically for textile integration.

20221004 093611

Scientists integrating Alchemy’s nanocomposite coating into combat cloth and camouflage netting for field trials. Photo credit: Alchemy

“Something we’ve seen over the last three years during the Ukraine war is that thermal cameras have made battlefields transparent; they’re quite affordable now,” Desai explains. “Put one on a drone, and suddenly you have an unmanned aircraft system flying overhead. Every soldier, vehicle, and military base becomes visible in thermal imaging which makes traditional camouflage useless.”

Alchemy developed a multi-spectral camouflage platform using specialized nanoparticles that can be added to textiles to hide soldiers’ heat signatures across mid-wave and long-wave infrared spectrums. The team plans to look into converting this technology into an aerosolized form for wider use on military gear and uniforms.

“We’ve received tremendous support from the Canadian Armed Forces through DRDC,” Desai states. “Alchemy went through several rounds of testing with feedback from Canada’s leading expert on signature management Jean Dumas. We scored 95 out of 100 during our field trial evaluation and were recommended to submit proposals for follow-on contracts aimed at commercializing this technology.”

nano day 2

Thermal image comparison of two prototypes

Thermal image comparison between two individuals during daytime testing; Alchemy’s prototype is shown on the right effectively hiding its wearer’s heat signature.

nano visible 3 2

Alchemy’s prototype as seen in daylight

Alchemy created a multi-spectral camouflage platform using specialized nanoparticles integrated into textiles to conceal soldiers’ heat signatures within mid-wave and long-wave infrared spectrums; here is Alchemy’s prototype shown in daylight.

nano evening 2

Evening field trial with Alchemy’s prototype

Evening field trial revealing only exposed skin emits visible heat while wearing Alchemy’s prototype.

Left: Thermal image comparison during daytime trials shows individuals side-by-side; with Alchemy’s prototype on right effectively masking heat signature. Centre: Image shows prototype visibility during day. Right: Evening test indicates only skin exposure results in visible heat emission from wearer. Photo credit: Alchemy

In September 2025, Alchemy obtained $6 million funding aimed at speeding up development and commercialization processes for both its defense-related projects as well as automotive technologies already being tested by major defense agencies around the world. The expansion efforts by Alchemy regarding Canadian manufacturing facilities benefit from backing by investors such as Name Silo Technologies, Pathfinder Asset Management, and Pembroke Management.

Sourcing Global Solutions While Keeping Roots Firmly Planted In Waterloo Region

At early 2025 mark, Alchemy also secured $1.8 million funding assistance provided via Federal Economic Development Agency designated specifically towards Southern Ontario (Fed Dev Ontario) to help advance next-gen versions intended particularly aimed at making windshield protective products more accessible than ever before available!

“Canada does an exceptional job supporting innovation,” Desai mentions proudly! “The resources supplied through Velocity programs along university partnerships & regional innovation centers really enhance capital efficiency related R&D initiatives! Grants plus contributions like those extended previously mentioned Fed Dev Ontario significantly contribute toward continuous local growth here!”

Currently speaking numbers stand pretty impressive too – roughly five hundred active installers spread across fifty-seven countries distributing Exo Shield films widely throughout market space today! While basic components necessary required crafting coatings happen produced domestically within Canada; certain production stages remain necessitated shift down south USA due lack appropriate specialized machinery existing upon Canadian soil still present moment. Desai expresses optimism anticipating federal grants will assist achieving expanded manufacturing capabilities located directly within Ontario thereby boosting employee counts alongside enhancing sales plus marketing strategies overall!

Desai attributes early accomplishments greatly resulting largely because support structure surrounding them provided via both community members including numerous resources offered thanks when involving organizations relating back home area starting point initially called Velocity incubator business network helping propel project vision forward despite previous financial challenges faced earlier concerning sustainability issues nevertheless ongoing collaboration remains key success factor moving ahead now !

“Having access combined knowledge gained throughout various Nanotechnology Engineering & Chemical Engineering programs proved beneficial recruitment strategy played vital role recruiting top-tier professionals originally originating straight off nearby universities present situated locally thus reasons why we ultimately decided return once again root location establishment surrounding environment,” he states firmly conveying importance finding suitable balance maintaining ties connected community while enabling strong professional connections fostering future opportunities created together collectively moving onwards!”
 <P As time progressed exponentially faster than imagined – staying based outta great city became essential given supportive atmosphere nurtured talents equipped labs alongside technical capabilities needed efficiently run operations smoothly without hindrance whatsoever especially considering upcoming plans expanding downtown Kitchener facility include retaining manufacturing warehouses internally growing division focusing strictly dedicated toward fulfilling governmental contracts stemming next few years timeline ahead laid out long term objectives goal setting pursuits where achievable milestones reach timely manner becoming reality soon enough hopefully achieved sooner rather than later overall projections seemed optimistic driven ambition passion shared entire crew behind scenes diligently working tirelessly behind curtains every single day striving excellence seeking further potential unlocked possibilities awaiting just around corner waiting discover potential breakthroughs yet unfold entirely before eyes !

Feature image: Exo Shield being fitted onto vehicle surfaces seamlessly integrated protecting against external elements encountered daily wear-and-tear conditions impacting longevity durability performance metrics considered paramount priority ensuring customer satisfaction levels maintained highest standards possible aligning company values integrity core mission statements upheld steadfastly committed deliver best service quality guaranteed across board consistently henceforth long lasting impressions left behind loyal patrons benefiting resultant solutions discovered implemented diligently crafted structures facilitated enhanced experiences overall enjoyed fully comprehensively understood even deeper layers explored interactions engaged throughout entire journey experienced along way taken every step progressively refining approaches seeking mastery perfected arts discovering hidden gems producing outstanding results repeatedly proven successful endeavors reaching new heights previously unattained realized aspirations dreams fulfilled congratulations collectively working collaboratively building better tomorrow beginning right here today ! ***(Photo Credit : ALCHEMY )**



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