My Biggest EV Trade Of The Year Explained In Simple Terms

Nano One Materials Corp. (NNOCF) — has been one of my biggest winners in the EV battery space this year, and it’s a great example of how I research stocks for my subscribers.

I had known Chairman Paul Matysek for ten years and CEO John Lando for thirty years. I had watched the stock trade since its IPO date, and once they announced a big financing $1.15, I could smell a big run coming in the stock as this sector became red hot. Readers and I loaded up on that financing, and it has paid off (We actually added at the recent $2.72 financing).

I think the IP here has incredible potential. The company has a battery technology that is attracting global attention in the EV supply chain — because their IP can potentially:

  1. Greatly reduce costs (estimated 15-30%) for cathode materials.
  2. Use a much more environmentally-friendly process.
  3. Charge a car battery in 12 minutes.
  4. Provide 1000 charges (1 charge = 1 tank of gas) — at a tank of gas a week, that would be the equivalent of an almost 20-year battery life.

I say "potentially" because it’s all still at a lab or pilot/demonstration scale. But they already have announced collaboration deals in Europe, China, and an unnamed Asian company. They now have $28 million in the bank -- including some big non-dilutive financing from governments. That’s at least a five-year runway.

Besides the stellar IP, the stock has benefited from the growing bubble in EV battery stocks — from Tesla (TSLA) all the way down to lithium miners, this sector has been one of the top places to be for retail investors. Investors are due for a correction in this space, but I think the EV trade has years to run.

Now that the stock has almost tripled for my readers, I want to give you a simple explanation of how this little company in a suburb of Vancouver, Canada could have one of the most heralded technologies of the EV age.

I bought Nano One on a simple idea – that they are in the running to make the first million-mile battery. That is still a big part of the story. But there is more to it than just that. Nano One is a battery material company. Yes, they are figuring out ways to makes batteries last longer, but they are also hard at work making them cheaper, smaller, and greener – basically, the next-generation of battery.

Once the market catches on – that this small Canadian company could be on the cusp of developing the next-gen battery – I think the stock could see further gains.

A Focus on the Cathode

Nano One is tricky to understand – there are so many technical details. Investors can (and often do) get bogged down with the science. Thus, I’ll try to keep it simple. Start with the lithium-ion battery. There are main 4 parts: cathode, anode, electrolyte, and separator.

Nano One is focused on the cathode. The cathode is a good place to look for cost reduction. One quarter of the cost of a lithium-ion battery comes from the cathode. There are lots of different materials that are used as cathodes. Nano One is working with 3 cathode materials:

  1. Lithium-iron-phosphate (LFP).
  2. Nickel-manganese-cobalt oxide (NMC).
  3. Lithium-nickel-manganese (LNM) (which has a higher voltage than the other two).

The first two (LFP and NMC) are commonly used in batteries. Nano One is trying to make them better. Nano One has filed a patent on using LNM with some off-the-shelf products to allow for a very long battery life – this could be a game-changer.

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