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HGB

2 EV Battery Makers Are Appealing Investments But Risky

by:HGB     2020-06-22
Electric car manufacturers are turning to lithium
Ion batteries power their range of new models and other means of transport: trucks, buses, leisure vehicles, boats, drones, trains and planes.
Lithium batteries for drones are replacing nickel-cadmium and nickel-metal hybrids.
At the same time, R & D is actively looking for alternatives to lithium
Ion batteries for all-electric cars and plugs
Climbing to the 8-car hybrid market
10% of global auto production.
My previous article on finding Alpha discussed that batteries are at the heart of electric vehicles.
However, battery makers of smart electric vehicles have received severe criticism as an investment.
Volkswagen, analysts and the media are focused on electric vehicle manufacturers.
Few listed companies are primarily engaged in the development and production of smart batteries for electric vehicles that are not in the ranks of battery manufacturers owned by specific car manufacturers or multinational companies with other priorities.
Western countries have largely handed over electric vehicle battery manufacturing to Asia. South Korea-
Headquartered in LG Chemical Co. , Ltd. S/ADR (Grey:OTC:LGCEY)(
OTCPK: LGCLF)
Make batteries, not vehicles.
There are competitors, but they do not exist on the US exchange, provide little financial information, or seem unstable based on the information available.
LGCEY is famous for its quality, on-
Time and reliability of product delivery.
LG Chem, once the world\'s tenth largest chemical company, was later divided into different departments.
In 1999, the company entered the lithium industry.
Ion battery business.
LG Chemical ranked third in early 2012
The world\'s largest manufacturer of electric vehicle batteries.
Its customers include automakers from Bolt, volt, Fox and Zoe.
The company has built a $300 factory with the United States. S.
Dutch subsidies in Michigan.
LG also reached an exclusive agreement with Mahindra & Mahindra to supply batteries in India (
OTCPK: MAHDY).
LG also produces batteries for other uses, such as wall-mounted lithium batteries for solar heating home power generation.
LG Chem has factories in Poland and plans to double the capacity of electric vehicle batteries every year to meet new orders from Volkswagen (OTCPK:VWAGY).
The company will invest $571 in Poland to ensure delivery to Volkswagen by the end of 2019. China-based Volvo (OTCPK:VOLAF)
Plug using LG Chemical battery from China factory
According to the government\'s new rules, drive on the car.
Before Japan fell into a legal dispute, isolato Carlos Ghosn talked about Nissan on 2015 (OTCPK:NSANY)
Abandoning the battery construction plan, it is most likely to buy electric car batteries from LG Chem.
In 2018, the father of the leaf confirmed that it was a plan for the future, but it was not destined.
Nissan continues to produce and install its own batteries from its subordinate automotive energy supply companies.
January, CEO of General Motors (GM)
GM has never replaced a Volt or Bolt battery.
\"The downside is that LG Chem has not produced an annual report in the past three years, and financial data is difficult to interpret.
I think the market filter provides the best statement on the Internet and is priced at $280.
Further reports from market watch have 25 purchase suggestions;
Four people are overweight and two hold.
For investors or just curious people, the company home page is not enough.
Prior to purchasing any stake in LG Chem, it is essential to speak with a registered broker and CPA.
For example, the source is pure-compared to the steady growth of LG Chem-
Battery manufacturers and China-
Based on CBAK Energy Technology (NASDAQ:CBAT).
Its future is at best wobbling.
It is reported that CBAT has filed for bankruptcy in the past, but now there are almost insurmountable debts and high Accounts receivable. Like a three-
Cup trick, management recently changed the name of the company, stock symbol, moved the headquarters to another city after years of financial hardship.
CBAK Tech is headquartered today in Dalian, China\'s seaport city.
The company is engaged in R & D, manufacturing and sales of high-tech
Power lithium battery.
The products include square aluminum shell batteries, polymer batteries, cylindrical batteries, etc.
The products are suitable for light electric vehicles, electric buses, energy storage, backup power supply, electric tools and other fields.
Four years ago, the stock was sold for $4.
But after a steady slide, they are now trading 98 cents.
Revenue was reported to be $45 in 2017, but total debt exceeded $39.
Free cash flow is-$16M.
The company announced on January that it had signed an agreement with an unnamed customer to deliver 19 M batteries within three years.
The announcement led the share price to rise to $1 from 40 cents in January. 19 in February.
It is reported that CEO Li Yunfei bought 1,666,667 shares at a price of $1.
Same Month 02.
The price increase may be tempting, but it seems to me that it cannot be an unrealistic commitment.
Whether it has cash to honor its promises is questionable.
Minimum number of CBAT (5%)
Institutional investors or analysts who track stocks. ~$2.
4 M shares are held by insiders and the rest are held by the public.
The market value is about $27.
The degree of leverage of the company is high;
The company recently announced a major deal with an unnamed battery buyer;
There are very few institutions with stick sticks, so it is not recommended to invest in CBAT.
Nothing has changed since Andri Capital warned in last May that it is not worth the risk of investing.
CBAT has conducted a good business case study of a weak company from which investors can gain insights.
Contemporary AMP technology (Shenzhen:CATL)
Established in 2011.
It went public in 2018.
Shares soared 44%.
Even so, an estimated 50% of the money is still being spent on expansion.
CATL has a large production plant in China and 4 international sales and service facilities in Japan.
CATL and BMW (
OTCPK: BMWYY)
Daimler, Volkswagen (
OTCPK: DMLRY), and Jaguar.
CATL owns a large stake in North American Nickel Company(
OTCQB: WSCRF)of Canada.
Revenue is expected to grow by 48% in 2019.
The company has opened a factory in Detroit and plans to supply it to the United States. S. automakers.
CATL has set up a new joint venture with a Chinese carmaker, announcing an agreement with Honda this year (NYSE:HMC).
CATL is the largest manufacturer of lithium batteries in China and intends to launch the next one --generation low-
Cobalt battery in 2019
If Americans can buy shares listed on the Shenzhen exchange, please consult your broker.
Other giants in electric vehicle battery research and manufacturing are not charged
No manufacturer yet.
They either have other interests to shift the focus and resources on the development and sales of smart batteries for electric vehicles, or focus their main efforts on providing their own electric vehicles.
For BYD, the Chinese carmaker, this could change in the future. OTCPK:BYDDY)(OTCPK:BYDDF).
BYD plans to spend $ 3B by 2020 to double the battery capacity of electric vehicles.
BYD intends to become a leading supplier of batteries that replace CATL.
Management discussed stripping BYD\'s battery division. Panasonic (OTCPK:PCRFY)(OTCPK:PCRFF)
Building new relationships with electric vehicle manufacturers has been slow.
In a deal with the largest electric vehicle manufacturer in the United States, PCRFY has struggled to become a leading supplier.
Is the transaction stalled or terminated?
Panasonic recently announced plans to work with Japan
US-based car manufacturers
Production of electric vehicle batteries as Japan aims to reduce the cost of electric vehicles to replace traditional vehicles on the road
Electric and hybrid cars.
Daimler is pushing big.
Hybrid car production
Electric cars.
The company is expected to purchase $23 B worth of batteries from LG Chem and SK Innovation (Grey:OTC:SKOVF).
But there is a China
The US-based battery plant has been closed since early 2017 and plans to build a new plant in the USS.
It seems that LG Chem has not yet been built, and it is likely to take the largest share of the new business.
Finally, Johnson Controls International (NYSE:JCI)
0. 154 billion lead in one production
Acid and lithiumion batteries -one-
Output of the tertiary industry-every year.
To serve the Chinese market, JCI has built two new factories in China.
JCI then sold its power unit and the new owners no longer pursue high
Voltage department of the battery market, I. e.
Smart battery for electric vehicles.
SourceStandalone electric vehicle battery listed company is in the works of swing.
They depend on the success of electric vehicle manufacturers.
Their cost depends largely on what they pay for lithium and cobalt.
Battery manufacturers consume a lot of cash in R & D and manufacturing. Overall, U. S.
Electric vehicle battery makers have handed over the market for electric vehicle batteries to Asian companies.
Chinese enterprises have ham
In the midst of a government rush to become the world\'s largest producer of electric vehicles, the industry has outperformed itself.
However, the battery is a weak link in the expansion of the electric vehicle market, customer service, satisfaction and convenience.
\"Batteries are the most common source of problems,\" Bloomberg warned.
\"Customers complain that they are not performing as advertised, that the drainage is fast and that it burns spontaneously and is very dangerous. China-
Let the electric car take criticism from the customer and complain about faulty motor, transmission, odmeter and bad smell.
Automakers may want proprietary benefits from making electric vehicle batteries themselves, but R & D, manufacturing and limited sales opportunities drag down the cash and other resources needed for car manufacturing.
On the other hand, electric car manufacturers focused on energy storage may find that they are building energy companies and are their own best customers.
Disclosure: I/we have no positions in any of the stocks mentioned and no plans to start any positions in the next 72 hours.
This article was written by myself and expressed my views.
I received no compensation (
In addition to Seeking Alpha).
I have no business relationship with any stock company mentioned in this article.
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