#Battery Innovation and Supply is the Next Critical Issue for #ElectricCar
Industry; (TSXV: $NBM.V) (OTC: $NBMFF) (NYSE: $NIO) (NASDAQ: $TSLA) (NYSE: $F)
(OTCQB: $VWAGY) @neo_battery
@NIOGlobal @telsa @Ford @VW
Point
Roberts WA, Delta, BC – September 2, 2021 - Investorideas.com, a leading
investor news resource covering electric vehicle and battery stocks releases a
special report featuring NEO Battery Materials
Ltd. (TSXV:
NBM)
(OTC:
NBMFF),
a Vancouver-based resource company focused on battery metals and materials. The
continuing panic surrounding semiconductor shortages for automakers will be
followed by an urgent demand for battery innovation and supply. This is the
next critical issue facing the industry in the future say experts.
Read this article,
featuring NBM in full at https://www.investorideas.com/news/2021/renewable-energy/09021Battery-Innovation.asp
Forbes recently quoted the Center for Automotive Research (CAR report) noting “With the U.S. plan to expand
electromobility on a very large scale, the European CO2 (carbon dioxide)
regulations and the transition to electric cars in China, the demand for
electric cars and thus lithium-ion batteries is increasing significantly,”
“As
manufacturers scramble to fulfill their ambitious electric car plans there’s a
danger of creating an artificial shortage, and of bidding prices too high. VW
and Tesla are ahead in the race to make sure crucial supplies are available,
while BMW and Mercedes’ parent Daimler are in danger of lagging, according to
the report.”
Already rising to the occasion, NEO Battery Materials Ltd. (TSXV:
NBM)
(OTC:
NBMFF)
recently announced that the Company has upscaled the capacity of production from the
pilot plant to a semi-commercial scale facility for silicon anode materials
manufactured through NEO’s proprietary nanocoating process.
From the news: NEO’s
semi-commercial plant project is now finalized to produce 120 tons per year,
and this is a 12-fold increase from the original capacity (~10 tons per year).
Assuming a ratio of 9:1 for graphite to silicon in the
anode (a 10% silicon loading), 120 tons per year produced
by NEO’s semi-commercial plant is sufficient
to supply 40,000 electric vehicles (EVs).
The Company is currently in the effort of increasing the silicon content in the
anode component by over a 20% loading as a short-term project through controlling
volume expansion and solid-electrolyte interphase (SEI) growth. This
direction implies that NEO is approaching a
100% silicon anode as the
final goal.
From the news: NEO has proceeded with
this decision to rapidly respond to the demands and requirements of different
customers within the lithium-ion battery supply chain for electric vehicles.
The ability to upscale the plant size positively indicates the mass production
viability of NEO’s silicon anodes. After construction and once processes are
optimized, the semi-commercial plant will be able to be readily converted into
a commercial-scale facility without substantial modifications.
From the news: Mr.
Spencer Huh, President and CEO of NEO, commented, “All of the progress are
exceeding our expectations and predicted timeline as our team is diligently
accelerating our commercialization process. Based on internal sample testing
results and the optimization of our manufacturing process, we have validated
the ability to upscale from a pilot to a semi-commercial scale facility.
Between all management, advisors, and engineers, there is unanimous agreement
and great confidence for the mass adoption of NEO’s silicon anodes by the
industry. Using the prototype testing results by our NDA partners, we can optimize
our processes and material design for a more
robust and convincing commercial plant.”
From the news: Dr. J. H. Park,
Director and Chief Scientific Advisor of NEO, added, “The location of the
semi-commercial facility is being narrowed
down, and the area is expected to be approximately 55,000 square feet with
numerous South Korean battery cell and material manufacturers in the proximity.
The space of the plant site considers the installation of at least 5
mass-production lines when the semi-commercial plant is fully converted into a
commercial facility. With regards to sample testing, the results and due
diligence will take on average a month, but we are actively shortening the
period through expanding the production capacity of our prototype anodes. We
have recently ordered two additional equipment to meet continual demands from
third parties.”
From the news: Mr. Suk Joong Hwang,
Member of the Scientific Advisory Board, has been appointed as the project
manager for the semi-commercial plant project. Mr. Hwang has over 20 years of
experience in process engineering in the chemical and polymer industry. He
specializes in scaling up products from the lab to mass production through
pilot and semi-commercial plants.
From the news: Mr. Hwang
commented, “We are extremely pleased and
excited to start NEO’s semi-commercial plant project. From my experience with
different projects, the commercialization of NEO’s silicon anodes is nearby.
The plant will be designed and constructed for versatility to flexibly respond
to and satisfy customers’ detailed needs and specifications. In addition to
capacity, the semi-commercial plant will retain the identical technical
precision and optimized process as a mass-production commercial facility. The
PDP (Process Design Package), which will be completed with the plant’s
installation, will be standardized for international use, and this will enable
the swift completion and success of future commercial plants in North America.”
Evidencing the global growth of EV’s and
future battery demands, NIO Inc. (NYSE: NIO), a pioneer and a
leading company in the premium smart electric vehicle market in China,
delivered 7,931 vehicles in July 2021, representing a strong 124.5%
year-over-year growth. As of July 31, 2021, cumulative deliveries of the ES8,
ES6 and EC6 reached 125,528 vehicles.
Attesting to how the chip shortage is
affecting the industry, in a recent Zacks’
article,
Ford Motor Company (NYSE:
F)
was reported to be slowing production of its hot-selling F-150 pickup truck and
two other vehicles due to the ongoing global crunch in semiconductor supply.
The automaker revealed a halt in production
at its Oakville Assembly Plant in Canada and Kansas City Assembly Plant in
Missouri during the week of August 30. The Oakville plant builds the Ford Edge
and Lincoln Nautilus crossovers. The Kansas City facility is responsible for
the assembly of the F-150.
These latest production cuts are being done
to divert its scarce semiconductor supply in order to finish the
nearly-completed vehicles awaiting chips so that they can be dispatched to the
dealers.
During Ford's annual
shareholder meeting on May 13, CEO Farley said the company is weighing
future strategies to deal with chip woes. Some of these strategies include
redesigning car components to work with more accessible chips and cutting
supply deals directly with chip foundries.
One company that
seems to always be one step ahead when it comes to looking for new business
vertices and innovation is Tesla. In a recent CNBC
article,
Tesla Inc. (NASDAQ:
TSLA)
has been reported to be looking to sell electricity directly to customers in
Texas, according to an application filed by the company in August with the
Public Utility Commission there.
The application
follows the start of a big battery build-out by Tesla in Angleton, Texas (near
Houston), where it aims to connect a 100 megawatt energy storage system to the
grid. Texas
Monthly
first reported on the application, submitted by a wholly owned subsidiary of
Tesla called Tesla Energy Ventures.
Tesla has also
built several utility-scale energy storage systems around the world, including
one east of Los Angeles, with another underway in Monterey, California, and two
in Australia - one in Geelong, Victoria and another in Adelaide, South
Australia.
So far Tesla hasn’t
functioned as the retail electricity provider but has instead focused on having
big batteries built by Tesla to help other companies in energy generation,
storage and consumption.
There have even
been some unforeseen benefits for automakers when it comes to their outdated
vehicles such as with Volkswagen. In a recent article from Fortune, Volkswagen AG (OTCQB:
VWAGY),
who has traditionally relied on its heavy-hitting premium brands Audi and
Porsche to haul in larger profits time and again, now has competition from the
unlikeliest of candidates-the group’s own captive financing business, VWFS.
Thanks to a global
semiconductor shortage that has depleted stocks of new vehicles and forced
consumers to scour used car dealerships for a new ride, the stable but
otherwise unspectacular VW subsidiary is cleaning up by selling (or leasing)
pre-owned models in a superheated market.
Not all carmakers
operate their own financing units: the business requires solid credit ratings
in order to afford the constant trips to debt markets for fresh funding. Some
have opted to partner with more traditional specialists like Santander Consumer
USA, an auto loan provider belonging to the eponymous Spanish bank. But for
those that do, whether BMW in Germany or Ford in the US, have enjoyed record
results at these businesses, just like Volkswagen.
“We’ve earned more
in the first half of 2021 than in the whole of 2016,” said VWFS Chief
Executive, Lars Henner Santelmann in a statement forecasting record profits of
€4 billion ($4.7 billion) this year. If it hits that mark, such a bottom-line
haul would be equivalent to more than 20% of the VW group's 2019 pre-COVID
operating profit.
The Volkswagen
branD, which builds models such as the Tiguan SUV and Jetta sedaN, could not
match this level when it earned a record €3.8 billion in 2019 or with Porsche,
the big margin generator in the VW group, which contributed only €4.2 billion
in its best year.
Recent data
published revealed a 25% year-on-year plunge in Germany’s new car market in
July. With order books still full, industry insiders said the declines suggest
remaining inventories of new cars that helped buttress sales amid the chip
shortage have largely been picked clean.
As we approach the
event horizon of this chip shortage we can expect automakers and battery
manufacturers to have all hands on deck when it comes to dealing with this
global issue. With headlines like Bloomberg’s “Tight Battery
Market Is Next Test for EVs After Chip Crisis,” it is critical for consumers and
investors to pay attention.
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