What’s up everyone, according to Ark Invest research led by Sam Korus, Lithium Iron Phosphate
Batteries Will Drive Electric Vehicle Costs Down. They say thanks to Wright’s Law, lithium iron
phosphate (LFP) costs should decline during the next five to ten years, declining by nearly 37%,
from roughly $65/kWh to $41/kWh. And this is important because it coincides with the large
scale commercialisation of electric vehicles and so the innovative stocks operating in this space
are well positioned to be the dominant players and winners over the long term.
So I have for you updates on 2 top ev battery stocks which are rapidly owning this large scale
ev battery commercialisation space. And these ev battery stocks already have some big partnerships
with the likes of VW, Ford and BMW backing them which are all scaling up their ev agenda.
I’m already feeling the heat here from these two stocks and so if you believe in this Ark Invest
research, you want to make sure you watch this video till the end, so you don’t miss out on why
these two stocks are leading in this space and may deserve a place on your watch list.
So if you are bullish about the EV supply chain, then make sure you drop a like on
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That said, let’s hit the road with our first banger on the list for today which is
with a market cap of $932m. Frey has been on the markets since July 21 and it is sitting down
over that period and way below its list price which shows how undervalued this stock is. And
in that period Frey has gained some big partnerships setting up to a good start.
Their share price has been very volatile but I feel they are well positioned
at these price levels giving some decent entry points.
FREYR entered a Joint Venture and with Aleees to Pursue lithium iron phosphate
Cathode Manufacturing. And with Aleees, a producer of lithium iron phosphate (“LFP”)
cathode materials for batteries, they signed a Head of Terms agreement to pursue a Joint
Venture (“JV”) with the ambition to establish an LFP cathode plant in the Nordic region.
The joint venture partners will seek to commence production in 2024, coinciding
with the anticipated ramp-up of operations from FREYR’s first Gigafactory in Mo i Rana, Norway.
The formation of the JV will seek to combine Aleees’ 17 years of experience
in LFP cathode production with FREYR’s strategy of manufacturing
decarbonized battery cells at scale and the FREYR team’s extensive experience
in conducting and constructing complex technical projects in the Nordic region.
The partners will focus on the following priorities, to drive value
in accordance with FREYR’s core strategic tenets of speed, scale, and sustainability:
The proposed facility should be the world’s first giga scale LFP cathode plant outside mainland
China. The JV partners plan to develop an initial 10,000 tonnes of LFP cathode material per year in
the Nordic region by 2024, which is estimated to be sufficient to supply FREYR’s first Gigafactory.
The JV’s secondary ambition is to quickly expand to at least 30,000 tonnes
by 2025 using Aleees’ modular LFP plant design.
Aleees is an approved supplier of cathode material to 24M Technologies, FREYR’s U.S.-based partner.
24M’s SemiSolid™ technology platform features a larger and thicker electrode design that is
intended to deliver higher energy density per volumetric unit while also reducing
production costs. Aleees and FREYR plan to collaboratively develop a Nordic supply chain
encompassing iron and phosphate products from the Nordic region. FREYR is also working to bring
lithium refining capacity to Norway to ensure a consistent supply of quality raw materials.
Freyr’s CEO Tom Einar Jensen, added that “This agreement with Aleees,
which calls for the construction of the first giga scale LFP cathode plant outside mainland China,
is another important step on their journey to localize and decarbonize battery cell production
and their supply chains in the Nordic region, and FREYR and Aleees intend to establish the plant
as part of a broader localized supply chain strategy that will leverage the abundance of
cost-advantaged, renewable energy in the Nordics and the growing availability of raw materials
produced in the region. So the combination of FREYR’s clean battery production
and Aleees’ deep experience in LFP cathode production and established production capacity,
will provide the basis for innovative solutions to the battery solutions worldwide.
Outside that Frey has had some other big partnerships including:
Honeywell and FREYR collaborating to deploy Energy Storage Solutions via Next-Generation
battery cells. As part of the collaboration, Honeywell will purchase 19 GWh of battery cells
produced by FREYR from 2023 through 2030 for a multitude of energy storage systems applications.
FREYR was Awarded 31 GWh Inaugural Offtake Agreement with a Leading Global ESS Provider.
The two companies have agreed to jointly develop innovative technology solutions
for the fast-growing global ESS market based on battery cells manufactured by FREYR.
FREYR’s partner, 24M Technologies also announced an EV battery partnership
with VW Group (“VWAG”) to manufacture next-generation lithium-ion EV batteries
using 24M’s SemiSolid™ platform. The partnership is focused on the development of production
technology for SemiSolid™ battery cells for use in VWAG electric vehicles (EVs).
FREYR also announced a Joint Venture with Koch Strategic Platforms
to Advance Development of Clean Battery Cell Manufacturing in the United States.
And lots more which puts this gem on a solid footing as the ev adaptation unfolds.
Next up to our number 2 banger on the list for today which is Solid Power Inc
(SLDP) which is a newbie on the Nasdaq market and barely 3months old which was listed at $10 per
share but once again a victim of the market selloff which has put it in value territory
hitting a share price of $6.2 and a market cap of $1.2bn. It had some recent good runs
hitting highs of $14.85 per share on its Nasdaq debut before giving up on those
gains to settle at current price levels following the completion of a SPAC deal.
Solid Power is the Leader in Solid-State Battery Technology looking to address an over $300bn+
Market. Their batteries offer Superior Performance through longer range,
extended life and improved safety. And they have a clear Path to Lowering Battery Costs and the
ability to reduce the most expensive component of EVs via a Simpler design, higher energy density
This is where it gets interesting for me where they’ve got strong validation from
Industry Leaders and investment from the likes of Ford and BMW.
This is important because having these 3rd parties will minimise the risk of any overstating
of battery potential vs what is theory as we have seen with some other providers. They also
have partnership and investment from Tier-1 Li-ion producer SK Innovation, which we know is presently
the worlds 6th largest ev battery manufacturer by gigawatt-hours produced, which is just a huge
endorsement. As well as a fully Funded Business Plan Through vehicle Start of production in 2026.
Their All-Solid-State solutions are expected to deliver significant benefits over current
and other emerging solutions ticking all the boxes with regards to high energy, superior safety,
long calendar life and low cost.
They also have real Results on the Path to Commercialization,
with Cell Production Expected in 2022. And what is expected to give more confidence
here as highlighted earlier is that their batteries are expected to be independently
tested by Auto OEMs, top tier battery manufacturers and material suppliers.
And the validation from their Automotive OEM Partners including BMW dates back to 2016 & Ford
since 2018 when they participated in their funding round, providing plan validation and capital.
Consequently, the company’s first commercialized batteries are expected to be for Ford Motor
and BMW, both of which have invested in the company. They intend provide to other companies,
including large auto suppliers, but their current focus is on producing for the two automakers
as we can see here their clear Pathway to Vehicle Start-of-Production (“SOP”).
Solid Power began Trading on Nasdaq in December 21 as SLDP After Completing Business SPAC Combination
with Decarbonization Plus Acquisition Corporation III to become the only
pure-play solid-state battery company to trade on the public markets.
Solid Power has spent the last ten years developing all-solid-state battery technology that
is designed to deliver the increased performance demanded by both automakers and consumers. “Their
focus continues to be on the commercialization of their next-generation all-solid-state battery
cells for automotive applications. They plan to use the proceeds from the transaction to fund
their capital-light business model through vehicle integration, which they expect to occur in 2026.”
“They believe the future of electric mobility will be fueled by all-solid-state batteries.
And as a company that isn’t just advancing concepts, but rather advancing commercialization,
they look forward to the company’s continued success as they work to deliver shareholder value
through the advancement of all-solid-state battery commercialization in future electric vehicles.
They also have a clear Path to Market with a pipeline of upcoming milestones scheduled for 2022
which are expected to drive the share price up pending successful execution.
They are focused on developing and commercializing a viable product. So, they say, what the stock
does over the next six months or 12 months is kind of meaningless as it pertains to getting their
product into the marketplace and ultimately, that’s when they plant the flag of success.
How exciting. Certainly a long term timelines we are talking about here but one to sleep on.
So some very very interesting and mindblowing prospects ahead for these stocks
but only consider getting in if the price is right for you and if you fully understand
the risks. This video is not financial advice, a buy or a sell recommendation,
but is meant to bring some new and exciting stocks to your attention for you to do your own
research.. As always I would love to hear from you, so please let me know your thoughts on
these top stocks in the comments section below and what other stocks are catching your eyes lately.
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