Batteries

John Petersen One of the most seductive and dangerous stock market myths is the immensely popular but demonstrably false notion that the rapid cost reductions and performance gains we enjoyed during the information and communications technology revolution will be repeated in the age of cleantech. The persistence of the mythology is astonishing when you consider that the entire history of alternative energy proves that cost reductions and performance gains are extraordinary events, rather than common occurrences. Investors who buy into economies of scale mythology without carefully considering the fundamental differences are in for a world of disillusionment and...

John Petersen On June 22nd Scientific American rolled-out a Web-only article titled "The Dirty Truth about Plug-in Hybrids, Made Interactive" that summarizes a January 2008 report from Oak Ridge National Laboratory and shows why plug-in vehicles in the U.S. will, on average, be just a little bit dirtier than gasoline HEVs. You read that right – dirtier, not cleaner! I first raised the issue in an August 2009 article titled PHEVs and EVs, Plugging Into a Lump of Coal, where I estimated that plug-in vehicles would be about 25% cleaner than HEVs, but the marginal cost...

ZAP (ZAPZ) unveiled a hydrogen fuel cell powered pickup as well as a new lithium battery technology at the Consumer Electronics Show. ZAP is forming a new division of the Company to focus on advanced energy technologies alongside its efforts to market advanced transportation. ZAP's fuel cell technology partner, Anuvu Incorporated, converted the Nissan Frontier 4-door pick-up truck on display at CES. An innovative hybrid fuel cell system powers the vehicle on hydrogen and electricity.

Arotech Corporation (ARTX) announced that its Batteries and Power Systems Division has received a second development contract from a major US agency. Under the contract, Arotech's Electric Fuel Battery Corporation subsidiary will develop prototype zinc-air batteries for small unmanned aerial vehicles (UAVs) to achieve extended flight times. The funding is expected to cover development costs.

John Petersen I frequently observe that market valuations in the energy storage sector have been wildly distorted by electric vehicle hype that has nothing to do with business fundamentals. Last February I wrote an article that compared Exide Technologies with Ener1, but obviously didn't quite get to the meat of the matter. Since both companies reported earnings on November 4th, this seems like an opportune time to be more direct in the comparison and present a brief primer on valuations in the energy storage sector. Since a lot of investors never get beyond stock price movements, the...

John Petersen Overview Mark Twain quipped, "It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so." Truer words were never spoken, particularly when it comes to the batteries that most of us use and curse on a daily basis. If you have a car, you have a lead-acid starter battery that needs to be replaced every couple years. Cellphones and laptops offer similar trials and tribulations unless you upgrade your electronics regularly. When our cars don't start or our electronics don't work, we invariably blame the...

David Hannum was right! There's a sucker born every minute and they're all waiting with bated breath for the low-cost plug-in electric vehicles that are coming soon to a dealership near you; if they're not quietly cancelled first. It's the most insidiously appealing idea of our age: replace those nasty gasoline burning engines with cheap batteries that recharge in minutes and save a fortune on fuel while you "See the USA in Your Chevrolet." It's so appealing in fact that it ranks right up there with free lunch. P.T. Barnum would have been proud. ...

Arotech Corporation (ARTX) announced today that its Battery and Power Systems Division has received a pilot order for its new 4th generation man portable Zinc Air battery packs from the US Air Force. Developed and manufactured by its Electric Fuel Battery Corporation subsidiary, Arotech's new battery pack is a 12 or 24 Volt battery with a total capacity of over 400Wh and Battery Energy Density of approximately 300Wh/kg. The new battery pack is optimized for use in vests, as man portable tactical radios are typically vest-worn in holsters. The pack is also designed for use in rucksacks. ...

John Petersen On April 8th the Electrification Coalition, a recently formed industrial lobby comprised of top-level executives from Cisco Systems (CSCO), Aerovironment (AVAV), NRG Energy (NRG), Rockwood Holdings (ROC), Nissan Motors (NSANY.PK), FedEx (FDX), A123 Systems (AONE) and a gaggle of private companies released a slick but wholly unenlightening white paper titled, "Economic Impact of the Electrification Roadmap." I haven't seen so many finely sculpted curves and unspoken assumptions since the tax shelter forecasts of the early-80s. The only clear message is that electric drive will be little more than a footnote in automotive history unless the powers...

ENER1 INC (ENEI) has established and equipped a pilot nanotechnology-based manufacturing facility to fabricate electrodes for high discharge rate, lithium-ion batteries. The company's battery subsidiary, EnerDel, Inc., in which Delphi Corporation holds a 19.5% interest, is in discussions with automotive OEMs regarding evaluation of samples for use in hybrid electric vehicles where the high discharge rate characteristic is viewed as key to performance and cost. EnerDel also plans to explore applications of this technology in other markets.

John Petersen   After six months of regulatory silence and $100 million in new funding, A123 Systems amended the SEC registration statement for its proposed IPO on June 23rd. While this latest filing may simply be A123's way demonstrating its ability to raise matching funds for a scaled back ATVM loan request of $1 billion and pending applications for $438 million in direct Federal grants, my sense is that the proposed IPO will probably come to market in early September. Since ATVM loans will require 20% cost sharing and direct Federal grants will require 50% cost...

I purchased shares in Altair Nanomaterials (ALTI) this morning for both my personal portfolio and also the mutual fund. ALTI is a holding company that specializes in nanomaterials and also contains a life sciences division. The materials company has research in high performance batteries, fuel cells, and photovoltaics. Altair announced earnings today and the stock is up on the morning trading. Revenue Increases 68 Percent for Third Quarter and 230 Percent for Nine-Month Period "An increase in revenue of 230 percent for the first three quarters of 2005 is representative of the significant progress Altair has...

John Petersen One of the most fervently debated and poorly understood topics in energy storage is the subject of battery recycling. What percentage of the raw materials that go into a battery can be economically recovered from used batteries with existing recycling technology and infrastructure? While the details are quite complex, this article will offer a high-level overview of the economics of battery recycling for energy storage investors. Lead-acid batteries are the most recycled products in the world. The process is both straightforward and cost-effective. When batteries arrive at the recycling plant, they're put through a shredder...

John Petersen wrote a series of popular articles last week to introduce new investors to the battery sector, following the A123 IPO.  We've had a couple requests from readers who missed one part or another, so here is a quick index to the articles. Part I - Battery industry overview. Parrt II - Comparison of energy storage technologies and companies. Part III - Benchmarking Performance of battery stocks Part IV - Debunking misconceptions about electric vehicles and battery technology.

John Petersen Last week Lux Research published a report titled "Micro-hybrids: On the Road to Hybrid Vehicle Dominance" that forecasts micro-hybrid vehicle sales of three million units this year increasing to 34 million units annually by mid-decade. Lux sent me a courtesy copy of their report and will host a webinar to discuss their findings on November 16th. While I'm very excited about Lux's conclusions respecting micro-hybrid implementation rates, it's critical for investors to understand that batteries for micro-hybrids will merely be upgrades of batteries that would have been sold in any event. Therefore, the benefit...

John Petersen In September I received an e-mail from France Innovation Scientifique & Transfert SA advertising their new IP Overview of Lithium Metal Phosphate Batteries - 2010/04. While I don't usually pay attention to e-mail pitches for costly reports, the FIST solicitation caught my eye because the abstract explained that roughly 1,100 patent applications have been filed for lithium metal phosphate chemistry since Dr. Goodenough's key patent issued in 1996. It's enough to give a guy a whole new perspective on this T-shirt from EV World. It also raises a couple critical issues that many...