I'm a longtime fan of electric
vehicles (EVs) as well as Plug
in Hybrid Electric Vehicles (PHEVs), in all
their variations. When it comes to investing, I think the best way to
invest
in on the growth of electric transportation is batteries, partly because
pure play battery companies exist (although my top battery pick, Electro
Energy (EEEID) , has been one
of my poorest performers, in a classic case of a cheaply priced company
getting even cheaper.
Given these interests, I was speaking to the President of Porous
Power Technologies, a private battery components firm a couple weeks ago
about the difference between batteries for EVs and batteries for HEVs. Counter-intuitively,
HEVs are much more demanding on batteries than are EVs.
This is because most batteries cannot release much of the stored electricity
in a short time. In fact, the same fully charged battery will produce more
electricity if discharged slowly than if it is discharged quickly.
An HEV will typically have a much smaller battery pack than a pure electric
vehicle, and so each cell will have to discharge faster to produce the same acceleration
from the electric motor. The same is true for charging times, so an EV's
batteries will be able to absorb more energy from regenerative braking than an
HEV's, all else being equal. This is the reason Trinity was able to get
better performance by adding
ultracapacitors top their "Extreme Hybrid" drivetrain.
Where does this leave investors? It depends on where you stand on
Hybrids vs. Electric Vehicles. If you think that Hybrid vehicles are going
to continue to gain market share, and EVs will remain a niche market, you should
focus on battery technologies with higher discharge rates, and on ultracapacitor
investments. If you believe that electric vehicles are going to take
off and start taking market share away from hybrids, the slower (and less
expensive) technologies will likely be better investments.
DISCLOSURE: Tom Konrad has an investment Porous Power
Technologies. (Note: Porous Power is no longer taking investments from
non-accredited investors.)
DISCLAIMER: The information and trades provided here and in the comments are for
informational purposes only and are not a solicitation to buy or sell any of
these securities. Investing involves substantial risk and you should evaluate
your own risk levels before you make any investment. Past results are not an
indication of future performance. Please take the time to read the full
disclaimer here.
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