Axion Power’s Potential For Explosive Growth
Tom Konrad, CFA Axion Power International, Inc. (OTC:AXPW) has been developing its patented PbC lead-carbon battery technology, and in 2013 those efforts seem on the verge of paying off. Unfortunately, Axion’s financing situation makes me unwilling to recommend its stock as an investment in the near term, but I do consider it one to watch. This article will take a look at Axion’s technology and near term potential markets. A follow-up article (published here) will discuss the company’s financing situation, and the things which will need to change before I consider the stock an...
Battery Recycling Realities for Energy Storage Investors
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...
Is Lithium-ion A Dead-End Electric Drive Technology?
John Petersen Last week Energy Secretary Steven Chu addressed the United Nations Climate Change Conference in Cancun. After watching the video presentation several times I can't help but wonder whether the Secretary didn't politely caution his audience that lithium-ion batteries are a dead-end electric drive technology. I could be misinterpreting Secretary Chu's remarks, but if you own stock in a lithium-ion battery developer like A123 Systems (AONE), Ener1 (HEV), Valence Technologies (VLNC) or Altair Nanotechnologies (ALTID), or are considering any of these companies for your portfolio, the discussion that starts 25 minutes into the following video could be...
What Do Investors Get With BioSolar?
by Debra Fiakas, CFA
Last week management of energy storage developer BioSolar, Inc. (BSRC: OTC/PK) provided an update on the company lithium-ion battery design. The company’s engineers along with a manufacturing partner are still making changes to the design called the 21700 cell. Additionally, the company recently decided to take greater control over raw materials supply, potentially sourcing and processing materials in the U.S.
Engineers at BioSolar have been trying to increase the storage capacity of lithium-ion batteries by improving the anode component. The plan is to sell 'super anodes' to battery manufacturers to make existing lithium-ion batteries work like super batteries. Prototypes were tested in July...
The Lead Acid Battery Sector Is Starting A Bull Run
John Petersen It's been a very good week for companies in the lead-acid battery sector and from all indications the fun is just beginning. Unlike most market sectors, the principal players in the lead-acid group report on a fiscal year basis instead of a calendar year basis. Enersys (ENS) and Exide Technologies (XIDE) both use fiscal years that end March 31st, and C&D Technologies (CHP) uses a fiscal year that ends January 31st. That makes the first two weeks of June a busy time as Enersys and Exide report annual results and C&D reports first quarter results. ...
Vinod Khosla on the Future of Lithium-ion Batteries
John Petersen On Monday of this week, the treehugger blog published a guest essay from Vinod Khosla that clarified his stance on the future of next generation lithium-ion batteries. The essay was prompted by "blog chatter" about an article in Earth2Tech where he was quoted as saying that lithium-ion batteries are overhyped. Since the Khosla essay included a link to my article "Why Lead-Carbon Batteries Will Deflate the Li-ion Bubble," I think it's important to tell readers that Mr. Khosla has written his own essay on the subject and encourage them...
Electro Energy, Inc. Successfully Integrates Patented Bipolar Battery Technology and Lithium Ion Technology
Electro Energy Inc (EEEI) announced it has successfully integrated its patented bipolar battery design with lithium ion technology to achieve a multi-cell prototype battery with increased discharge efficiency, reduced weight and volume, more flexible design, and lower manufacturing costs. This achievement combines, for the first time, proven bipolar wafer cell design with gel polymer electrolyte-based lithium ion (Li-ion) technology. The bipolar Li-ion (BP Li-ion) cells have the same positive attributes as Electro Energy's bipolar nickel-metal hydride (BP Ni-MH) design, which typically provides up to 50% more power, 30% lower volume and 25% lower manufacturing costs than competing technologies....
Alternative Energy Storage: Enabling the Smart Grid
America’s electric power grid is subject to immense inefficiencies that arise from the interplay between centralized power generation, local power consumption and on demand utility service. To put things into a broad perspective, the nameplate capacity of U.S. generating facilities is about 1 million Megawatts (MW), so if all of our power plants ran 24/7 we would have a theoretical annual generating capacity of 8.7 billion Megawatt-hours (MWh). Since demand for electricity fluctuates on both a daily and seasonal basis, total electric power generation in 2007 was only 4.2 billion MWh, or less than 50% of nameplate...
The Wanxiang Transaction Is Not Necessarily A Permanent Solution For A123’s Problems
John Petersen On Wednesday A123 Systems (AONE) announced the execution of a Non-binding Memorandum of Understanding with the Wanxiang Group that will, if successfully implemented, restore A123 to a sound financial footing. Since the basic deal terms are a good deal more complex than the reports one reads in the mainstream media, I think a drill down into the detail may be helpful for investors who want to understand what a restructured A123 will look like. The critical document for this analysis is the MOU included as Exhibit 99.2 to A123's recent report on Form 8-K. The...
Why Energy Storage Investors Must Understand Economies of Scale
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...
Electro Energy: Drained, or Ready to Recharge?
Bottom-Fishing for Batteries I believe that we have only seen the beginning of the current market decline. You should take that with a grain of salt, since I've been unremittingly bearish since 1999 and for more than half that time, the market has been going up. Even if the market has much further to fall, some stocks may have already taken most of the damage they are likely to take. Knowing that I might be wrong, I've started to do a little bottom fishing among companies that people have been starting to dump as the realize stock prices can...
Graphite Producers In Production
by Debra Fiakas CFA The series on graphite resource development is completed with a discussion of the companies that are currently in production. The U.S. Geological Survey estimates 1.2 million metric tons of flake graphite are produced annually. The vast majority - 780,000 metric tons - are produced in China. India and Brazil follow with 170,000 metric tons and 80,000 metric tons, respectively. North America, which seems to show so much promise to the graphite resource developers that have been featured over the past few articles, is currently only contributing 30,000 metric tons per year to the graphite...
Saviors and Saboteurs in Alternative Energy
John Petersen Last week Societe Generale published a thematic research report titled "A new world order, when demand overtakes supply" which examines the macro-economic and demographic trends that will transform the global economy over the next 20 years. It mirrored the theme of Jeremy Grantham's April 2011 quarterly letter titled "Time to Wake Up: Days of Abundant Resources and Falling Prices Are Over Forever" and did a great job of summarizing an issue I touched on in "How PHEVs and EVs Will Sabotage America's Drive For Energy Independence." In the words of Societe Generale: "So, while...
Electro Energy Delivers Silent Watch Battery System
Electro Energy Inc (EEEI) announced the delivery of a Bipolar Battery System to the U.S. Army Communications and Electronics Command (CECOM), to be tested and demonstrated under the Silent Watch Program. The EEEI bipolar battery system was built under the Company's contract with the U.S. Army Manufacturing Technology (Mantech) Program. The EEEI system, comprised of three 1kW modules, could be operated individually or as a complete system with a 3kW power capability, which would provide on-board vehicle electrical power to operate in Silent Watch Mode for three hours compared to the existing lead acid capability of 45 minutes....
Electrovaya’s Battery Bargain
by Debra Fiakas CFA Last week management of Electrovaya Inc. (EFL: TSX; EFLVF: OTC/QB) were forced to issue a statement stating there were no fundamental developments to explain a dramatic decline in its share price. The stock was trimmed back by 30% in two days under exceptional trading volume. Electrovaya has developed proprietary lithium ion polymer batteries for grid storage and transportation applications. Other than financial results for the quarter ending March 2017, the Company has had little to tell investors about the batteries, its customers or any other topic. Electrovaya distinguishes its lithium ion batteries among...
ETS Interview: The Will the Real Transportation Fuel of the Future Step Forward
For macro reasons, I think that the next generation liquid fuels may be cellulosic ethanol and biodiesel or renewable diesel from algae. But those fuels will increasingly be sharing the roads with the long term transportation fuel of the future: electricity from renewable sources, especially wind. Wind will be important for electric transportation and electric transportation will be important for wind because, when you're already going to be charging batteries, you may as well do it when the electricity is cheap, which will be when the wind is blowing.. Plug-in hybrid vehicles (PHEVs) neatly solve the main barrier...
