The technologies of tomorrow need solid state battery advancements — and last week we saw evidence that’s happening
It probably slipped under your radar, but something important happened last week.
A small startup company, supported by the U.S. Department of Energy, released a lithium ion battery that stores more energy than the industry benchmark — and more importantly — did so at a lower cost.
This might sound trivial, even boring, but it’s not. It’s actually very significant.
We’re standing at the cusp of one of the most transformative periods in human history. The rate of technological advancement is staggering — and today’s breakthroughs are going to revolutionize our day-to-day lives tomorrow. Everything from how we drive, to how we “operate” our homes (the connectivity of basically every machine you own), to what we’re able to accomplish on our cell phones …
***Yet, for all these advancements to happen, there’s one puzzle piece that needs to fall into place
To help explain, let’s turn to Matt McCall, editor of Investment Opportunities. Through his newsletter, Matt tracks the game-changing trends that are reshaping our world, and producing massive investment wealth in the process.
Here’s what Matt recently wrote to subscribers on this issue:
I’m going to share with you a one-sentence description of our future.
Are you ready?
Better batteries will make everything better.
Not too far in our future, everything will be mobile and unplugged. So when I say better batteries will make everything better, that’s exactly what I mean.
Computers. Tablets. Phones. Smart homes. Smart cities. Medical devices. Cars. Even airplanes!
Today’s phones and cars — and all the other amazing electric devices in the world — use batteries that are in the Stone Age in comparison to their computing power, wireless connectivity, and software.
The only way these innovations will happen is with improved battery technology.
Matt goes on to point toward the innovation that will make the difference — solid state batteries.
Back to Matt:
For my money, the technology best positioned to lead us into the future is solid state batteries. They are much safer (with virtually no risk of those fires we’ve all heard about), offer significantly better battery life, have higher energy density … and eventually they will be much less expensive than current batteries.
That’s a win-win-win-win.
Research firm Arthur D. Little projects that the global battery market will grow from $60 billion in 2015 to $90 billion by 2025. If solid state becomes the standard for batteries, it will capture a large portion of that $90 billion market. Even a mere 10% is $9 billion, which would represent enormous growth in the next six years.
***To date, the challenge has been that solid state batteries haven’t yet been able to be produced at a reasonable cost
But this week’s news from battery company 24M indicates major progress toward solving this challenge. From CleanTechnica:
The quest for a better battery for electric vehicle applications took a step forward this week as 24M, an innovative battery company founded and led by some of the battery industry’s foremost inventors, scientists, and entrepreneurs and headquartered in Cambridge, Massachusetts, announced it has shipped the first semi-solid state lithium-ion batteries to commercial customers.
24M says it has also supplied battery cells with an energy density of 280 watt-hours per kilogram to an industrial partner and is pushing forward with research it hopes will result in batteries with 400 watt-hours per kilogram energy density in the near future. To put that in perspective, such battery cells would nearly double the range of the Tesla Model 3.
Yet, remember, the issue isn’t just the technological advancement — it’s that advancement at a reasonable cost. That’s why this news is significant. As Engadget reports:
24M has touted manufacturing costs 40 percent lower than regular batteries.
***But don’t make the mistake of thinking only startup companies are pursuing next-generation battery technology — the major auto players are throwing tons of money at this
Perhaps no other sector has more to gain from battery technology advancements than the auto industry. That’s because electric vehicles are the future of automobiles, yet so far, automakers haven’t been able to mass-produce electric cars profitably.
Why? The prohibitive cost of the battery packs.
You see, an electric car’s battery makes up between 30% and 50% of the cost of an electric vehicle. For context, a 500 km-range battery costs around $20,000. Plus, you have to add another $2,000 for the electric motor and inverter. Compare that with a gasoline engine that costs around $5,000.
This is why the traditional automakers are funneling huge amounts of dollars at battery research. From our January 14th Digest:
Just how invested are the major car companies in battery research and production? A report from Reuters published last Thursday reveals just how much. Here are just a few examples …
Volkswagen/Audi/Porsche — out of $91B going to electric vehicles, batteries alone will see $57B of that. For Daimler, batteries will get $30B out of a total spend of $42B. And all of Toyota’s $13.5B is earmarked for batteries. Click here to see the entire list.
***Last week, we received new reports of the major automakers collaborating on electric vehicle technology and expanding their electric offerings
First, there were additional details about the partnership between Volkswagen and Ford. From The Wall Street Journal:
Volkswagen AG is planning to invest around $1.7 billion in a self-driving car venture with Ford Motor Co.’s Argo subsidiary … The agreement to create a self-driving vehicle joint venture is part of broader cooperation talks that have been under way since last year …
Ford has said it’s spending $11 billion to develop electric vehicles over a seven-year stretch ending in 2022 … Volkswagen has embarked on an ambitious drive to invest as much as $150 billion over the next five years to develop electric cars and self-driving car technology.
Next, we heard from Daimler and BMW. A separate Journal article reported that the two high-end auto manufacturers are likely to unveil plans to expand their existing cooperation.
Last, we learned that Porsche plans to release an electric version of its popular Macan SUV. It also announced it intends to invest nearly $7 billion in developing electric vehicles by 2022.
***Coming full circle, you can see why this week’s news from 24M is significant
We’re one step closer to the next-generation batteries that will change our lives — and result in major wealth for those investors who align themselves with this tailwind.
Back to Matt:
Over the past year, I’ve spent an enormous amount of time studying the battery industry. I can tell you this mega innovation isn’t a matter of “if,” it’s a matter of “when.” I believe the next big battery breakthrough will go down as one of the greatest inventions of the 21st century.
There are huge investment implications here. Those on the right side of this innovation stand to build incredible wealth … just like those who were on the right side of the internet and the smartphone in the beginning.
If you want more access to Matt and his investment research on batteries, he’s created a free video presentation to help investors better understand how to position themselves. Click here to watch.
We’ll continue to keep you updated.
Have a good evening,
Jeff Remsburg
