LG Chem: Storage Battery Leader

by Debra Fiakas CFA The post “Energy Storage Restart,” which was published last week, discussed the efforts by General Electric (GE:  NYSE) to get back into the market for utility-scale energy storage.  After some difficulties that required the partial closing of its battery manufacturing plant, GE has got back in the game with new contracts wins.  In April 2015, the company won a contract to supply Con Edison Development with an 8-megawatt-hour battery storage system at a solar project in California.  GE will be integrating lithium-ion batteries rather than...

DOE Energy Storage Subsidies: Heavenly Grants and Hellish Loans

Much of the buzz in the energy storage sector is focused on DOE administered subsidy programs and what they will mean for investors in smaller public companies. The buzz began when Title XVII of the Energy Policy Act of 2005 ("EPACT") authorized $2 billion in loan guarantees for innovative energy technologies. It ramped up rapidly when the Energy Independence and Security Act of 2007 authorized another $2.5 billion in loan guarantees under the Advanced Technology Vehicles Manufacturing ("ATVM") program. It reached a crescendo when the American Recovery and Reinvestment Act of 2009 ("ARRA") authorized $7 billion in smart grid,...

Lead-acid Batteries and How Cheap Beat Cool at Google

On April 1st CNET News published a story about a previously secret technology that Google (GOOG) has patented and implemented system-wide. The technology, which Ben Jai of Google reportedly described as their "Manhattan Project," builds a 12-volt battery into each server to provide backup power. The point that fascinates me is Google's choice of small format valve regulated lead-acid batteries to keep its servers running. When an ultra-sophisticated company like Google picks cheap over cool for a mission critical function, I think it speaks volumes about the future direction of the energy storage industry. Stephen Shankland of...

A123 Systems Files Price Range Amendment

John Petersen This morning A123 Systems filed another registration statement amendment for its planned IPO. The amendment specifies a preliminary price range of $8.00 to $9.50 and a preliminary offering size of 25 million shares (28.85 million shares with over-allotment option). Amendments like today's filing occur during the late stages of an IPO and it's not unusual to see the price range or offering size increase in later filings. Both of the preliminary values are about half of what I expected. The price range surprises me because of its rough parity with the $9.20 per share...

High Conviction Paired Trade – Short Tesla Motors And Buy Exide Technologies, The Sequel

John Petersen Last November I broke with tradition for the first time in over 30 years and suggested a paired trade that bought Exide Technologies (XIDE) and shorted Tesla Motors (TSLA). Over the following three months, investors who made the trade and bought four Exide shares while shorting one Tesla share pocketed the following gains. 16-Nov-2010 16-Feb 2011 Net Entry Exit Gain Buy Four Exide -$29.76 $49.68 $19.92 Short One Tesla $30.80 ...

A123 Systems, An Object Lesson In Toxic Financing

John Petersen July has been a ghastly month for stockholders of A123 Systems (AONE) who've watched in horror as the stock price collapsed from $1.30 on July 5th to $0.49 at Friday's close. While there was unfavorable news of a director resignation yesterday, all the other news over the last month has been positive, at least at first blush. In my view the market activity was both predictable and directly attributable to recent toxic financing transactions that will have A123 printing stock faster than Ben Bernanke is printing dollars for the foreseeable future. I'd love to be able...

Congratulating Chrysler and A123 Systems

On April 6th, Chrysler LLC announced the creation of a strategic alliance whereby A123 Systems, Inc. will become a primary battery supplier for Chrysler's planned line of plug-in electric vehicles. This is a huge step toward rebuilding America's domestic battery manufacturing infrastructure and both companies should be congratulated. The next steps I see in my murky crystal ball are finalization of A123's pending IPO coupled with an announcement that A123's $1.8 billion loan request under the DOE's Advanced Technology Vehicle Manufacturing Program has been approved. If the foundation has been properly laid, it will all come together very quickly....

Metal-Air Battery Stocks

by Debra Fiakas CFA Earlier this year, we added metal air batteries and the companies who are working to commercialize the technology on our list of promising acts to follow.  The Israeli battery developer, Phinergy, was added to our Mothers of Invention Index.  Back when I wrote the post “More in the Air than Spring” back in April 2013, Phinergy had attracted a bit of attention for a road test of Citroen C1 car outfitted with a technology far different than conventional lithium ion.  No one knows Phinergy.  It is too small and too foreign to impress...
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