Today, we are featuring the second essay in the series from Matt McCall, editor of Investment Opportunities, about the market-changing trend in next-generation batteries. Battery life is the key to much of the new tech that dominates our lives, including smart phones, electric vehicles, and even home appliances.
In his first essay, Matt described some of the science behind solid state batteries and why they could be the breakthrough that changes everything. Today he will share his research that confirms why this is such a unique investment opportunity. The market for solid state batteries is going to be huge, and he has done the research and shares the numbers to back it all up.
We will be sharing the final essay in this series with you in a special send of the Digest very soon. In the meantime, I know you’ll find the essay below informative and entertaining.
Luis Hernandez, Managing Editor
Over 100,000 Percent Growth?
By Matt McCall
In my first essay, we talked about the multi-trillion dollar implications of a coming battery breakthrough. We talked about how the world’s richest corporations and investors are scrambling to get a stake in this technology. We talked about how we want a stake, too.
Today, let’s put some numbers on that so you understand what’s coming.
For starters, here are predictions from a few research firms about the future of solid state batteries:
- According to MarketsAndMarkets, the solid state battery market is expected to reach $1.1 billion by 2020. That would result in a compound annual growth rate (CAGR) of 72% between 2015 and 2020.
- Inkwood Research expects the global solid state battery market to grow with a CAGR of 67% between 2018 and 2026.
- Research firm Arthur D. Little sees the entire battery market growing to $90 billion by 2025 from $60 billion in 2015. This is an important number because it shows how the overall demand for batteries is set to explode. (Not the batteries themselves… just the demand!)
Assuming solid state is the standard for future batteries, it will capture a large portion of that $90 billion market. But even a mere 10% is $9 billion, which is still enormous growth in the next seven years. And massive profit potential if you are invested in the right stocks.
What’s more, the solid state battery trend could last decades. According to researcher Fuji Keizai, the solid-state battery market will be worth more than $24.5 billion in 2035.
The research firm pegs the solid state battery market at $18.6 million in 2017. That is an increase of 131,620%!
If we look ahead to 2040, Bloomberg predicts that solid state batteries will be in 60 million vehicles. That is from ZERO today. Even if the final number is just 25% of Bloomberg’s prediction, it would result in 15 million vehicles powered by solid state batteries.
The upside potential is nearly impossible to put into numbers.
When we can identify long-term investment trends that offer potential growth of 10X, 20X, and in some cases 50X to 100X, who wouldn’t want in on the action?
The Big Money Race Is On
The future of batteries and energy storage is a true life-changer. The way you travel will be altered forever with electric and self-driving cars. The way you power your home will be based on a new technology of storing energy. Your devices could last literally weeks – can you imagine?! – without having to find an outlet for charging. Imagine cars driving on a single charge for nearly a month. The list goes on and on.
What seems impossible today could be the reality of the future.
In the early stages of a new and potentially groundbreaking technology, there are typically a few small companies leading the way. But you can believe that some of the world’s biggest companies are also in the race. They don’t want to be left behind.
The list of companies backing solid state battery technology is a who’s who of successful businesses. Some of these companies are private and others are publicly traded.
Let’s start in Japan, which has been a leader in solid state battery technology for years. A collaborative effort was launched recently between the Japanese government, private companies, and research organizations. The goal is to mass produce solid state batteries and make them viable in automobiles. Two of the largest companies involved are well-known names – Toyota and Panasonic.
Companies all around the world are fighting to come up with the next great battery breakthrough. From the largest global automakers to Tesla to the richest men on the planet, the search for the trillion dollar battery technology is on. Billions are being poured into research for solid state batteries.
In the summer of 2018, Volkswagen invested $100 million into QuantumScape, a California-based company working on its own solid state battery. Founded in 2010 as a spin-off from Stanford University, the company is already considered a “unicorn” with a valuation over $1 billion. The CEO of QuantumScape has been successful in the past as the founder of Lightera and Infinera. The company is shooting for 2025 as the year it will begin mass production.
QuantumScape is not alone in the startup world. Massachusetts-based Ionic Materials is working on replacing the liquid parts of lithium-ion batteries with plastic. It has garnered some attention from big names like Renault-Nissan-Mitsubishi, Hyundai, Total, and Hitachi.
Dyson, which is most well-known for its vacuum cleaners, is trying to become a major player in the solid state battery industry as well. A few months ago, Dyson announced it would spend up to $2.7 billion to launch new electric vehicles. The plan appears to be moving forward with the announcement of a new plant in Singapore and a goal of three electric vehicles by 2020.
The timing is obviously up in the air for all companies, especially Dyson, which is new to the auto industry. That being said, successful billionaires are investing their riches in a new technology. We should all take notice.
I could go on and on with the list of companies and billionaires investing in battery technology. But my point for now has been made – even though solid state batteries are not household items just yet, odds are they will be in the near future. The path to get there is paved with innovation and riches.
Matt McCall, Editor