Battery Day: Still Plenty of Headroom for Lesser-Known Electric Vehicle/Battery Stocks -- SECFilings.com
Redondo Beach, California--(Newsfile Corp. - September 22, 2020) - SECFilings.com, a leading financial news and information portal offering free real time public company filing alerts, announces the publication of an article discussing the electric vehicle and lithium-ion battery sectors. Ahead of Tesla's Battery Day, a major event in the electric vehicle and electric battery space, it might be worth noting a couple of trends. First, the sector has shown explosive growth recently, led by major companies like Tesla, Nikola Motors, and Nio. XPeng Motors' recent IPO was projected to price at $12, and it came out of the gate quickly up to $21. CATL, a China-based global leader in EV battery production, has nearly doubled in value since the beginning of 2020.
The second trend is the positive but slightly lagging growth in smaller stocks in the sector. There is still plenty of upside potential to be found by exploring industry niches filled with lesser-known companies. That value may be unlocked by zeroing in on companies with crucial technology that can advance the industry, and companies with resources and connections that can enable significant market share. One company meeting both of these criteria is Nano One Materials Corp. (TSXV: NNO) (OTC Pink: NNOMF) (FSE: LBMB).
Nano One's Niche
Nano One has developed, patented, and scaled-up innovative processes that produce cathode active materials for lithium-ion battery applications in electric vehicles, energy storage, and consumer electronics. The company's One Pot process reduces the cost of cathode materials, and cathode materials make up about 22% of total battery costs, representing the single largest segment of electric vehicle battery cost.
The patented manufacturing technology, applicable to a wide variety of lithium-ion battery types, also improves cathode durability while streamlining the standard production process. One Pot processing also reduces the carbon footprint of cathode manufacturing, making it even more attractive to an industry built on an environmentally responsible framework.
Nano One has announced partnerships with heavy hitters in the industry like Volkswagen, Pulead, and Saint-Gobain. It recently announced a joint development agreement with a multi-billion-dollar Asian cathode material producer which wishes to remain anonymous for competitive reasons.
Nano One also recently brought on mining veteran Robert Morris to make inroads with metal producers and refiners in an attempt to clean up the cathode materials supply chain, making it much more efficient and environmentally sustainable. From the press release:
Nano One's patented one-pot process forms durable single crystal cathode powders and protective coatings simultaneously and directly from non-sulfate metal salts. It is an aqueous process that operates at room-temperature and atmospheric pressures, and it eliminates the precursor step, and the extra coating steps completely while keeping the sulfate stream at the refiner where it can be recycled. This aligns Nano One with the sustainability objectives of automotive companies, investment communities and governmental infrastructure initiatives. It also offers an opportunity for nickel refiners to provide environmentally and sustainability minded sources of nickel or to integrate and manufacture cost-reduced value-added cathode powders for direct supply to battery manufacturers.
EV Stock Performance
A sampling of ETFs and stocks associated with electric vehicles and batteries shows a pretty hot market sector. The Global X Autonomous & Electric Vehicles ETF has recovered nicely from its COVID-related drop. It achieved a high of $14.79 prior to its precipitous fall to $9.82 on March 16, and closed September 18 at $17.05. The fund offers a deep reach into the sector with exposure to component makers mixed in with the major manufacturers. For instance, Tesla accounts for just 3% of its weight.
Tesla, of course, went supernova this year, rallying from $86.05 on January 2 to $442.15 on September 18. Chinese EV maker Nio closed at $3.72 on January 2 but rocketed up to $19.41 on September 18. These are, obviously, incredible growth rates almost beyond the imagination.
Nano One has also experienced tremendous growth in value this year, but on a smaller scale. The stock closed January 2 at $1.16, recovered nicely from a COVID dip, and rose all the way to $3.30 on September 18. Upward momentum has been gaining since this summer as the company's plans to commercialize its technology begin to play out, but there has yet to be a definitive commercial deal that could fuel an even steeper climb. With a market cap in the range of CAD$260 million and the potential for its One Pot process to revolutionize the manufacture of a wide variety of lithium-ion batteries, there appears to be plenty of headroom in the coming quarters for Nano One Materials Corp.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/64398