Global Fully Charged Report

Kalkine Pty Limited ‘s ‘Global Fully Charged Report’

With investments streaming in for an ‘Electrified World’, and policymakers paving way for a sustainable future, ‘Battery-Storage Technologies’ is the next wave of a frenzy to mitigate climate change.

The big question is will Batteries enable the ‘Global Green Economy’ Vision over the next decade? The battery industry is still in the nascent stage of innovation and can act as a key enabler transforming the transportation and power sector to create an emission-free environment.

Introducing Kalkine’s New ‘Global Fully Charged Report’

‘Global Fully Charged Report’ provides individual an opportunity to recognize quality battery storage stocks globally. Electric Vehicles and Battery Storage area presents earnings potential. Also, considering the newly elected US President Joe Biden’s focus on climate crisis, recent announcements by major car makers such as GM Motors and Ford to go all electric by 2030-2035, and overwhelming fund commitment by policy makers to support battery research and manufacturing (over $3.5 billion fund by European Commission as per German Economic Ministry), immense opportunities are expected to emerge in this sector over the next decade.

Battery storage stocks provides long-term opportunity as the transport and energy sector is shifting its focus towards decarbonisation. With oil consumption to drop as low as 2012 levels, the traditional oil and gas companies are feeling the heat. However, battery-cell and auto manufacturers, chemical businesses, solar and utility operators are set to benefit from this trend, while lithium-ion batteries may serve as prime energy storage in off-grid renewable energy space due to superior lifespan and power densities.

Soaring Battery-Storage Space amid Rise in Demand

COVID-19 containment measures impacted deployments in 2019, but as restrictions lifted, global economies resumed production with capacity at near pre-COVID levels. With increasing solar-paired storage, the global energy storage market is estimated at 12.6 GWh deployed in 2020, and investments in the sector are expected to grow multi-fold from US$18 billion in 2019 to $100 billion by 2025 (as per Wood Mackenzie).

Amid Global Prospects, the US serves as the biggest market for energy storage driven by regulatory mandates and opening of the wholesale energy market. Besides, Australia’s residential storage market may get support from the surge in residential dwellings. Other markets such as UK, Canada, and New Zealand are also steadily transitioning from shorter duration battery systems to multi-hour storage.

Solar + Storage concept is fairly outreaching given the significance in peak demand during summer and winter periods and while the supply-side should gear-up to meet this strong demand. By 2040, the electric vehicles may contribute to more than half of the global passenger vehicles sold (as per Bloomberg NEF). However, on the pricing front, utility-scale battery prices are expected to fall significantly as batteries revolutionize renewables energy.

How has the Battery Storage Sector Performed Globally in Terms of Returns?

With falling Lithium-ion battery prices and higher penetration of battery applications, Global X Lithium and Battery Tech ETF delivered 1-year returns of +131.86% outperforming the S&P 500 Index by a 115.18% (February 16, 2021, from Refinitiv).

Then there is the example of Tesla, Inc. (NASDAQ: TSLA) a leader in electric vehicles and clean energy - The stock yielded a 1-year gain of ~364.91% against 16.68% generated by the S&P 500 (February 17, 2021, from Refinitiv). Tesla, which has a portfolio in automotive, energy generation and storage, touched a new high recently in January 2021. The stock generated an annualized ROE of 4.78%. Nano One Materials Corp. (CVE: NNO) is a Canadian player engaged in low-cost production of cathode materials for lithium-ion batteries. The stock posted 1-year gains of 271.24% and the share price is approaching its 52-week high price.

Another example to look at is that of Novonix (ASX: NVX), an Australian technology company providing graphite and materials for lithium-ion batteries. The stock delivered a 1-year return of 830.62% (from Refinitiv) and touched a new 52-week high price in January 2021.

Though few risks in the sector prevail such as lack of penetration as the market for storage systems is at the nascent stage, cost of batteries although declining but still on the higher side, extensive government support required, and significant capex front loading by corporates etc., still immense opportunities can be recognized. 

Considering the above, Kalkine’s ‘Global Fully Charged Report’, in general, aims to Offer Stock(s) with:

• Fundamentals: Backed by businesses with a proven track record in revenue generation, order pipeline

• Businesses Tethering on Environmental, Social and Corporate Governance: The emphasis is on experienced management in the clean-tech space with a focus on regulatory compliance and climate change for better.

• Flavor of Diversification: The coverage offers wide sub-sectors including pure-play battery companies, UPS systems, and automotive battery manufacturers, chemical companies, advanced cell manufacturers, and OEMs for EV Transition.

• Focus on Business Scalability and Industrial Applicability at Global Level: Businesses that are capable to leverage global-scale to reduce the operating and equipment costs tend to provide exciting opportunity zones. 

• Prudent 360° Valuation Approach:  All crucial events are evaluated, assess key risks, choose appropriate valuation metrics, and consider key technical indicators to gauge the price trends.

To summarize, Kalkine’s Fully Charged Report aims to provide easy to comprehend information with deep-insights on investment in the battery technology space. The report aims to cover stocks after an overall assessment of the global demand and supply scenario, recent events, investment outlook, valuation potential, and associated risks, etc.