Almost every week we hear of a new and so-called better lithium-ion battery; yet the reality is it never arrives. Typically there are still problems to be solved, and hence the battery is still only at the lab testing stage. For investors, it makes more sense right now to go with a company that is improving on the existing lithium-ion batteries and that is partnered directly into the lithium-ion battery supply chain. The top name that meets these criteria would be Canada’s Nano One Materials Corp.
Nano One Materials Corp. (TSXV: NNO) primary focus is to improve on existing lithium-ion batteries. The key area is the battery cathode where Nano One has been having success using its scalable industrial process for producing low cost, high performance, battery materials. The processes vary and are all patented, but typically rely on Nano One’s expertise in nanotechnology and processing technology.
Nano One is very well partnered into key battery suppliers and some car manufacturers, including several big names – Pulead, Saint-Gobain and Volkswagen. Nano One is working with Pulead to develop better LFP batteries, with Saint-Gobain to improve thermal processing and to develop enhanced high temp cathode processing, and with Volkswagen to develop advanced materials for next-generation batteries.
Battery cathode sales forecast to take off as Nano One’s patented process makes cathodes cheaper
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The Nano One and Pulead partnership is progressing well
In December 2019 Nano One announced that things were moving ahead very well with their Pulead partnership to commercialize lithium-ion phosphate (LFP) batteries. Pulead is one of China’s leading Li-ion battery cathode producers, with a focus on LFP cathodes.
Dr. Xinhe Yang, VP of Research and Development at Pulead stated: “We value the partnership with Nano One and are satisfied that their process can be supported with reliable and sustainable sources of raw materials. Our technical teams are making good progress on commercial viability and we remain committed to the partnership activities.”
This all means Nano One is getting closer to achieving revenues as a result of licensing their IP. This woud be a very significant step forward for Nano One. The LFP market is huge in China, and is the preferred cathode for electric buses, and many types of heavy electric vehicles where battery longevity and price play key roles.
Nano One CEO Dan Blondal stated: “This marks an important achievement in our commercialization efforts and moves us closer to the joint objective of licensing Nano One technology for the production of LFP by Pulead.”
Nano One patents a new durable cobalt-free battery material
Nano One’s new lithium nickel manganese oxide (LNMO) cathode material patent eliminates cobalt from the battery and increases durability. This helps solve two key concerns in the industry thereby creating a strong need for Nano One’s proprietary process.
Nano One’s licensing economic model
The key for any company to succeed is to find a niche need then fill that need with an affordable product. That is exactly what Nano One is doing. There is a massive need right now for cheaper and better lithium-ion batteries to make electric vehicles affordable to the masses. Nano One is already meeting that need by lowering the cost of batteries by improving (shortening etc) the production process (‘one pot process’), as well as improving the cathode’s performance by using better materials and better combinations.
It seems the industry agrees as many of the big names continue to partner strategically with Nano One. It looks to be only a matter of time until Nano One’s licensing economic model begins to make money for Nano One. And when it does it should be very profitable, especially if revenues accelerate sharply as the EV boom takes off post 2022. Once revenues and profits kick in then I would expect a significant stock price re-rating.