Hitting that one home-run can transform your portfolio. I’m talking about the stock that soars 1,000% or more. Plus, while juicing your overall portfolio returns, finding a monster-winner is also pretty thrilling. Did you know that InvestorPlace has a newsletter dedicated to this exact goal? It’s called The Daily 10X Stock Report, and it’s engineered for one sole purpose: Deliver to your inbox — every day the market is open — a top-notch small-cap stock pick that could rise by 1,000% or more in the long run. The service launched in mid-May. Six weeks later, we did our first diagnostic of how the 10X stocks were coming along. At that time, 15 of the stocks had rallied more than 10% since the 10X team wrote about them … 10 had rallied more than 20% … five had rallied more than 50% … And three had risen 100% or more. Again, in just six weeks. In today’s Digest, we’re going to turn it over to Luke Lango, who heads up the 10X team. In addition to putting the service on your radar, we wanted to highlight Luke’s latest pick. It’s a tiny way to play the electric vehicle market. If you’re looking for stocks that have the potential to turn into that one, huge homerun, then The Daily 10X Stock Report is for you. Have a good weekend, Jeff Remsburg

 

Wall Street Is Sleeping on This Disruptive, Small EV Battery Stock

By Luke Lango and the InvestorPlace Research Staff

There’s a lot of talk about electric vehicles right now.

But all of that talk seems to be centered around the catchy, headline-grabbing electric vehicle brands like Tesla and NIO.

Very little attention is given to the behind-the-scenes, EV parts suppliers — or, more specifically, the guys who make the batteries which power these cars.

Those companies are just as mission-critical to the mass proliferation of electric vehicles over the next decade, as the Teslas and NIOs of the world.

They represent an explosive group of companies optimally positioned to capitalize on an EV components market that is projected to grow by 30% per year to $157 BILLION by 2025 …

And Wall Street is sleeping on most of them.

In today’s edition of The Daily 10X, we will tell you about one of these small, overlooked EV components stocks that — by leaning into a proprietary, breakthrough process to create a new generation of more durable EV batteries — could easily soar by 10X over the next few years.

A Disruptive ‘Picks and Shovels’ Pure-Play for the EV Market

Longtime readers know that one of the best ways to invest in a booming industry is by buying the companies which supply the “picks and shovels” for that industry.

When it comes to potential “picks and shovels” plays for the booming EV market, arguably none are as attractively positioned to roar higher than Nano One Materials (NNOMF).

Nano One Materials makes cathodes for lithium ion batteries in electric vehicles.

But the $150 million company isn’t just another player in the $12 billion global cathode components market.

Nano One is a differentiated player which has developed a novel, breakthrough process that — at scale — could entirely disrupt this $12 billion category.

Specifically, the company has developed what management calls the “one pot” process … and it’s called that because, in broad and simple terms, it involves taking the massively complex and costly cathode manufacturing process, and shrinking it down into happening fairly quickly in just one “pot” or furnace.

The science here is quite complex, so let’s break it down in easy-to-understand terms.

Lithium ion batteries are powered by shuffling lithium ions between cathodes and anodes. Cathodes are traditionally made by baking lithium ions into metals, like cobalt, nickel, and magnesium.

In order to stabilize this concoction of energies and metals, the traditional cathode manufacturing process involves coating the entire cathode with a protective layer. But that layer adds costs and time into the manufacturing process, and erodes over time from repeated charging.

This erosion is mostly why electric vehicles can only go so far, and why the batteries need to be replaced so often.

So, in essence, the key to unlocking the dream EV that can drive and last forever, lies in fixing the cathode manufacturing process.

Nano One may have done just that …

The company’s “one pot” cathode manufacturing process is a ground-up approach wherein — as opposed to creating a cathode and then coating it — involves creating individually coated nanocrystals and stringing them all together to create one super-coated cathode.

Why do this?

It’s a quicker process. It’s cheaper. And it results in a cathode that can withstand repeated charging and lasts far longer.

Recent research from Tesla supports this last finding. In late 2019, a Tesla-commissioned study found that a single crystal cathode battery could power an electric car for over 1 million miles.

So … it goes without saying … the single crystal cathodes which Nano One specializes in appear to be the future of EV batteries.

Of course, as the Tesla study implies, Nano One isn’t the only company experimenting with this breakthrough technology. It’s a highly competitive space.

But …

Making coated nanocrystals is expensive. Nano One’s ability to inexpensively produce multiple coated nanocrystals in “one pot” is novel, and backed by 16 patents worldwide.

Making these crystals and disrupting the cathode manufacturing market is also the only thing that Nano One does. Specialization in such a specialized space in the EV category is an important feature.

Nano One is also a licensing play. The company isn’t building out huge manufacturing facilities, which require a ton of money.

Instead, the company has one pilot facility, where engineers are establishing proof-of-concept. Once proof-of-concept is established, Nano One plans to license the technology to EV players, which implies a hugely profitable business model at scale.

Also, Nano One has partnered with Volkswagen, who is looking to Nano One’s differentiated cathode technology to help Volkswagen make a big push into the EV space over the next 10 years (a stretch during which VW plans to launch 22 million EVs).

Connecting the dots, Nano One is a disruptive, highly qualified pure-play on the next generation of cathode technology and electric cars.

And yet … the company has a market cap of just $150 million today.

This could easily turn into a multi-billion-dollar EV components supplier over the next few years, implying big enough upside potential that you may want to consider adding Nano One stock to your portfolio today.

Sincerely,

Luke