Tomorrow’s technologies are mind-boggling … but we need next generation batteries to keep up

“So, what happens when you’re racing to make the F train and your cell phone dies?”

“If your phone is dead, that’s your problem.”

This classically “New York” response comes from Al Putre, Executive Director of the New York Metropolitan Transportation Authority (MTA).

But what exactly is going on in this conversation?

The exchange involves technology, our cell phones, and battery life.

As we recently discussed here in the Digest, next generation batteries represent a major trend and investment opportunity over the coming years, but few investors currently have this on their radar.

Of course, that’s good for you and me, who do see this trend’s potential.

Given today’s shortened trading session in preparation for the July 4th holiday, we’re going to have some fun in this Digest. Specifically, we’re going to look at some technology that’s available on your phones today, the amazing technology of tomorrow, and why all of it points toward the need for — you guessed it — next generation batteries.

***Avoiding headaches in the New York subways

While the majority of subway riders are fumbling for their easy-to-lose NYC subway MetroCards, a rider with the latest technology simply taps her iPhone to a glowing orb at the turnstile and she’s in. There’s no need to initiate Apple Pay by pressing any buttons, or scan her fingerprint or her face. She just taps and moves on.

While this type of “digital credit card” is here in some forms today, it’s still not widely used by most Americans. But that’s going to change. Everything from IDs to hotel keys are gravitating toward our mobile phones.

As an example, let’s return to NYC. Right now, the MTA prints 80 million MetroCards a year. By July 2023, it wants to print 0.

The goal is for riders to tap either a new OMNY card, a contactless credit or debit card, or a phone with a mobile pay wallet, like Apple Pay. And it’s not just New York — transit systems all over, from Shanghai to Portland, are implementing similarly compatible tech.

But this leads us back to the exchange that began this Digest — what happens when your cell phone dies?

Well, in short, you’re in trouble …

But let’s not completely shift to batteries just yet. Let’s continue with tomorrow’s technologies that will be on our smartphones.

***Get ready for a new, digital driver’s license

As another example of our increasing reliance on our smartphones, Delaware is instituting a new mobile driver’s license (“mDL”) program which will be available to all residents with iPhones and Android phones by year-end. It’s one of 10 states that expect to have a mDL program in 2019.

To take part, you download the DMV’s app, enter and confirm your phone number, scan your physical license, and then scan your face, moving side to side. This creates an animated photo. This cutting-edge driver’s license offers some unique benefits, like giving you the option of showing just your age and name — not your home address.

To avoid any fake IDs, you can drag a finger across your phone screen and it will create a ripple effect and a yellow seal that confirms its authenticity.

Now, tying back to batteries — what happens if you get pulled over by a police officer for speeding and your phone is dead?

Here’s a screenshot from The Wall Street Journal with its take on this unfortunate situation:

 

 

***One final mind-blowing future use of our cell phones

Ready for this one?

Mind control.

 

Now, we’re still years from using this every day, but the technology is astonishing …

Mind-control technology holds the promise of allowing you to perform physical or vocal tasks with just your mind. For instance, you could open an app on your phone, play a video, and even edit images — purely with your thoughts.

With this mind control, using smartphones would be significantly faster. We’d no longer have to search for an app, or have to type in various commands. These functions could be performed in a few heartbeats.

To me, this all sounds far-fetched, but apparently scientists are making progress. For example, Facebook’s “Building 8” division is developing technology to enable people to type with their minds. The targeted speed is 100 words per minute. That’s roughly five times faster than the average person typing on a smartphone.

Meanwhile, scientists at MIT are working on something similar. A device called AlterEgo will enable a user to converse with machines (such as your smartphone) with only thoughts.

***Tomorrow’s technologies require better batteries

At this point, let’s pivot to batteries.

When we talk “batteries” here in the Digest, most of the time it’s in reference to electric cars. But that’s obviously limited in scope. The technologies we use every day, and the ones that will power the technologies of tomorrow require batteries — basically, smaller versions of an electric car’s battery. As everyone reading this can likely relate to, when these batteries die, it’s a huge inconvenience.

But as we become more and more reliant on technology to help us get through our everyday routines, today’s “inconvenience” is going to become tomorrow’s significant problem.

What happens when you’re trying to catch the F train and your phone is dead and you have no cash?

What happens when you’re running late to the dinner party, you’re trying to buy a bottle of wine, and need to show your ID to the store clerk but your phone is dead?

What happens when any of tomorrow’s technologies are suddenly chopped at the knees because your battery is gone?

Well, as The Wall Street Journal put it — “you’re screwed.”

This is obviously pointing toward a huge need for next generation battery advancements to accommodate the growing need for mobile power.

Matt McCall has been tracking this trend for his Investment Opportunities subscribers. Here’s how we described the future demand in a recent issue:

Bloomberg New Energy Finance predicts demand for batteries will explode from 100 gigawatt hours (GWh) today to 1,500 GWh by 2030. That means battery technology needs to keep up with the 15-fold demand increase in the next 12 years.

That demand will never be met if we stay with the current leading technology — the lithium-ion battery. The supply of lithium is not sufficient. Neither is the supply of cobalt, a key component to the lithium-ion battery. This potential shortage is just one more reason researchers are focusing on an alternative.

That takes time. A new battery cannot be whipped up in a lab in a couple of years. And with everything we use on a daily basis that’s powered by a lithium-ion battery, the race is on to find a new and better technology.

The solid state battery is the answer. It is clearly superior to what is available today. You will quickly realize the long list of improvements and benefits this new battery technology offers.

As we mentioned in Monday’s Digest, news from last month reports that Toyota has sped up its time to unveiling its breakthrough in solid state technology. Toyota’s Vice President and R&D Chief, Shigeki Terashi, said …

…by the time we have the Olympic games next year, we would like to make sure that a solid-state battery can be unveiled to the public … Progress has surpassed the target. We have entered a new age.

The same advancements that will power Toyota’s electric cars will help power our smartphones and similar everyday devices.

If batteries haven’t been on your radar as an investor, I hope you’ll change that. This is the technology that, quite literally, will power our future. To learn more, click here to watch a special presentation from Matt.

In the meantime, we’ll keep you up to speed on all of these amazing smartphone technologies as they continue to roll out.

Enjoy the beginning of your July 4th holiday,

Jeff Remsburg