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.

1 2 3 4
View single page >> |

Disclaimer: Under no circumstances should any material in this site be construed as an ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.