High Stakes Competition for the Next Generation of Batteries

Like many, I own my home, which as you other homeowners know means lots of upkeep. We finally had some good weather, so I spent a lot of time last weekend working around the house … replacing the air filter, cleaning out my gutters (I really should hire someone to do that) and spreading mulch around my garden.

And after a long day I could finally relax and enjoy a good night of sleep …. Until.

CHIRP!

The smoke detector battery needed to be replaced. Can I ignore this and go back to sleep?

CHIRP!

Nope.

Daylight savings is usually my reminder to change the battery in the smoke detector, but I’d neglected it this one time so, of course, it decided to remind me. (Why the chirp always seems to happen in the middle of the night is another essay….)

While I was standing on a ladder in the middle of the night and fiddling with the smoke detectors, I couldn’t help but think that the next generation of batteries will make life easier.

We won’t have to depend on changing the clocks to remind us to perform this task because solid state batteries will last years instead of months.

My analytics tell me more than half of you are reading this on your smartphone. Imagine having to only charge that phone once a month…or maybe even less.

Pretty soon, all the other items in your house – the appliances, tablets, watches, remotes, etc. – that run on batteries could require a lot less maintenance.

And I don’t even have a “smart house” that leverages the Internet of Things to use a smart device to connect their alarm systems, thermostat and household lights.

Every part of your house that relies on a battery will be transformed.

We’ve been sharing a series of essays from Investment Opportunities editor Matt McCall about solid state batteries and the tremendous investment opportunities presented by this trend that will, literally, change every battery-operated device you own.

Here is an excerpt from Matt’s research discussing the economic implications….

Over the past 10 years, smartphones and tablets have taken over the world. Research firm Statista estimates that more than 1.54 billion smartphones were sold from 2007 to 2017. After the iPad was introduced in 2010, worldwide tablet shipments jumped from 31.5 million to 230 million in just four years.

Medical devices, sensors, and clean energy usage are all giant industries and heavy users of batteries. And then there is the Internet of Things (IoT). Almost everything we own will be connected to the internet — from thermostats to automobiles to streetlights. This is a massive trend in its own right … and all of those devices need to be powered.

That’s why the next big breakthrough in battery technology will be huge. It’s an innovation that will have multi-trillion-dollar economic implications. Think of a world with electric cars that have massive ranges. Think of an iPhone that needs charging just once per month! Think of mass adoption of clean solar and wind energy. Think of airplanes that run on batteries. Think of the eventual demise of the oil and gas industry.

Matt has spent an enormous amount of time studying the battery industry. Based on that research, he is convinced that this innovation isn’t a matter of “if,” it’s a matter of “when.”

As you can imagine, all the big players in the device industry have an interest in seeing this come to fruition and, more importantly, being the first ones to get there. That means names such as Apple, Samsung and Sony are all making big investments in this trend.

That doesn’t even consider what’s going on in the automotive industry.

The world’s largest auto maker just made a major announcement committing to a future of electric cars.

Early today, Volkswagen said it will launch 70 new electric models – 22 million cars – by 2028. That goal represents a much faster roll out of zero-emission cars than they had previously estimated.

Interestingly, the company announced that its operating margin on its core brand had been hurt by problems meeting new emissions standards. That only seems to confirm their motivation to move in the direction of electric cars as quickly as possible

Last week, Nissan announced that its electric car, called Leaf, is the first to break the 400,000 mark in sales. According to Nissan, since its launch in 2010, Leaf owners have, driven more than 10 billion kilometers. The Japanese automaker estimates that the number of Leaf cars sold since launch was enough to have saved 3.8 million barrels of oil annually.

Yesterday, Porsche announced that it has a next-generation battery coming out in 2020 to provide longer life for its electric vehicle – the Taycan. Porsche’s CEO, Oliver Blume said, “The next generation of batteries will come in 2020 and will bring an increase in the ampere hours of our battery cells from 37 to 47. This will permit us to achieve larger ranges, which we will gradually introduce into our products.”

Clearly the car companies have a major stake in being the first to market with electric cars and, even more importantly, with the next generation batteries to power those cars.

Solid state batteries are a safer alternative with longer life than the standard lithium-ion battery sold today.

Here is more of Matt’s research on why this is such a game-changer.

The biggest breakthrough is that solid state batteries use solid electrolytes instead of liquid electrolytes. This change from liquid to solid will improve nearly every aspect of the battery technology of today.

Solid state batteries are smaller, lighter, and can store a lot more energy than what is currently available. On top of the operational benefits, the battery is less likely to catch fire or explode. It also has less impact on the environment.

A lithium-ion battery (on the left below) is made of four main parts: cathode, anode, electrolytes, and a separator. The ions pass back and forth from the anode to the cathode through the liquid electrolytes and separator.

A solid state battery (on the right) has the same components, but as you can see, the electrolytes are solid (the blue middle), not liquid or polymer. Replacing the liquid with the solid results in all of the benefits I mentioned along with lower potential for fire or overheating.

Like many market-changing innovations, the biggest profits will go to those who invest early.

The competition is fierce, and the timeline so short, that rivals are starting to team up to try to share costs and get products to market faster.

Today, Google’s subsidiary working on electric and autonomous vehicles, Waymo, announced that it has been seeking outside investors, such as Volkswagen, to share the costs and increase the speed of deployment.

Previously, Volkswagen and Ford had revealed that they were in talks to collaborate on electric vehicles.

Some of the biggest names in the biggest industries are investing millions in this trend. It’s going to change every device in your home, office and vehicle, and the only question now is how you can benefit.

Matt has prepared a presentation summarizing his research and you can view it by clicking here.

Subscribers to his Investment Opportunities service have already received several picks to cash in on this trend.

To a richer life…

Luis Hernandez, Managing Editor
and the research team at InvestorPlace.com


Article printed from InvestorPlace Media, https://investorplace.com/2019/03/high-stakes-competition-for-the-next-generation-of-batteries/.

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