dynaCERT’s technology in demand as we approach the 2020 tighter emission standards

One of the biggest trends for the next decade will be a Government led push for ‘reduced vehicle emissions’. Europe and China will lead the way, with the US set to lag under the Trump administration. Ramping up in 2020, car manufacturers will need to dramatically reduce emissions or face huge fines. One report estimates these fines could reach 34 billion euros (~US$37.5 billion) just in Europe, if car manufacturers don’t rapidly reduce emissions.

The new emission standards will hit Europe in just 6 weeks time, starting January 1, 2020. The US will also soon be announcing new emission standards. According to a recent Reuters report, the US EPA is prepared to enact new regulations to curtail smog, and plans to set new standards next year for nitrogen oxide emissions from heavy trucks. China will also start implementing tougher vehicle emission standards from January 1, 2020, and then go nationwide.

All of this means investors should be looking now at companies that can help car manufacturers reduce emissions. One such company is dynaCERT Inc. (TSXV: DYA | OTCQB: DYFSF).

dynaCERT manufactures, distributes, and installs Carbon Emission Reduction Technology (CERT) for use with internal combustion engines, and especially for diesel engines. Their flagship product is HydraGEN™.

Here is a sample what dynaCERT’s HydraGEN™ Technology can achieve.

  • 19.2% reduction in fuel consumption
  • 88.7% reduction in NOx emissions
  • 46.7% reduction in CO emissions
  • 9.6% reduction in CO2 emissions
  • 57.1% reduction in THC emissions
  • 55.3% reduction in particulate matter (no black smoke)
  • 60% reduction of Diesel Emission Fuel (DEF) usage
  • Increase engine power and torque as well as extending engine and oil life thereby saving on maintenance costs

dynaCERT forms a new alliance with a large truck servicing company named MOSOLF

dynaCERT has recently formed a strategic alliance with MOSOLF, one of the largest truck servicing companies in Europe. MOSOLF has agreed to purchase one thousand HydraGEN units in 2020. This purchase will give dynaCERT representation across five countries in the European Union. Of this initial order dynaCERT has announced that it has commenced the shipping of one hundred HydraGEN™ Technology Units to Europe.

Jim Payne, President and CEO of dynaCERT, stated: “dynaCERT is 100% committed to supporting MOSOLF in Europe as we are with all our dealers world-wide. With this initial shipping order, MOSOLF is demonstrating their rapid response and the genuine capabilities of their highly respected team in Europe.”

Dr. Joerg Mosolf, Chief Executive Officer of the MOSOLF Group, stated: “We are very pleased to accelerate our ordering process and installation schedule of dynaCERT’s HydraGEN™ Technology.”

A dynaCERT promotion at the Agri-Trade Equipment Expo in Red Deer

Source

dynaCERT alliance with KarbonKleen and strategic equity investment

Announced just yesterday, dynaCERT has recently delivered the first 150  HydraGEN™ Technology Units to KarbonKleen Inc. (KarbonKleen) destined for Mexico, as part of a total purchase order of 400 units.

Also as part of a recent $1.35 million private placement to a major European strategic investor, KarbonKleen has also subscribed for a substantial amount of the offering.

dynaCERT is expanding rapidly with 40 dealers around the world

dynaCERT now has up to 40 dealers around the world selling their products to small and large truck owners, fleets, and government organisations that use diesel engines. With a billion diesel engines in the world dynaCERT’s green emission technology is in big demand.

It is easy to see why as HydraGEN™ reduces fuel use by up to 20% with the important bonus of also reducing carbon emissions by over 50%. dynaCERT’s patented technology has been certified around the world including Germany where their technology has undergone four different rigorous tests and validations from some of the best experts in diesel engine technology.

dynaCERT is penetrating the mining industry

dynaCERT is also penetrating into the mining industry with its emission control technology and has received a German innovation award as well as an award from the Colorado mining industry. The Company is now applying to have its emission-reduction technology certified as a Carbon Credit creator for diesel engines.

2020 will be a remarkable year for dynaCERT as Europe, China and others make significant moves to reduce vehicle emissions. The past week of new orders and deals should be just a warm up for 2020.

Headquartered in Toronto, Canada; dynaCERT Inc. has a market cap of C$ 140 million. Analyst’s consensus price target is C$1.90, representing 296% upside.




Electric pickup trucks are coming soon – The Tesla pickup reveal is on November 21

Electric bikes, sedans and SUVs are all now regularly seen on our roads, but soon we will start to see electric trucks of all types and sizes.

The Tesla electric pickup truck

This coming November 21 is the Tesla (NASDAQ: TSLA) all-electric pickup truck reveal. The Tesla pickup, also nicknamed the “Cybertruck”, is said to look like something from the movie Blade Runner. In October Elon Musk tweeted: “Cybertruck doesn’t look like anything I’ve seen bouncing around the Internet. It’s closer to an armored personnel carrier from the future.”

The base model price is said to be under US$50,000. Range is expected to be between 400 and 500 miles depending on the version. Production dates are yet to be released.

Elon has said the e-pickup truck will be “a better truck than an F-150 in terms of truck-like functionality, and be a better sports car than a standard (Porsche) 911.”

Other Tesla products expected soon are the Tesla Roadster 2 and Tesla Semi (said to be entering production in 2020), as well as Tesla Model Y (deliveries starting possibly in late 2020).

The Tesla electric pick up truck mystery – What will it look like?

The Rivian electric pickup truck

Another electric truck coming soon that has already had a great response from the public is the Rivian electric pickup truck, known as the ‘Rivian R1T pickup’. It will have a range of ~400 miles, 4 electric motors which will accelerate from 0-60mph in just 3 seconds, and a starting price of US$69,000. It is currently in the testing stage and first deliveries are set to begin in late 2020. Both Amazon and Ford are backers of the company which is still not yet listed.

The Rivian R1T pickup will be perfect for taking on a road trip

The all-electric Ford F-150

Even the current US pickup truck leader Ford is racing to have an electric pickup as soon as possible. Ford is the undisputed leader in US conventional pickup truck sales.

The key takeaway for investors is that the electrification of the entire transport fleet is coming, noting long range planes will be conventional or hybrid. Electric pickup trucks are just around the corner.

Based on past performance Tesla is the one to beat, given they dominate the US electric car market sales with 57% market share, and are the global number 1 electric car seller with 16% global market share. Tesla previously disrupted the luxury large sedan market with Model S, and is now disrupting the small and mid-size luxury sedan market with Model 3. Rivian (private) look to have a great niche product for those on a high budget, and Ford should benefit from their loyal pickup customer base, but certainly look likely to lose market share.

For now my money is on Tesla. Tesla Model 3 sales is dominating the luxury car market of conventional cars in the US and its production in China is about to begin. They have a great pipeline of new EV products ahead (Semi, Roadster 2, Pickup, and Model Y), their energy storage products (Powerwall, Powerpack, and now Megapack), as well as their solar roof. Tesla was profitable last quarter but still has a lofty forecast 2021 PE of 49, and an analyst’s consensus “hold” and price target of US$285. I think this price target will be upgraded if China Model 3 sales go well, and Tesla’s profits start to increase each quarter.




The revolutionary AI technology that works for generators, electric motors, and also for batteries

Electric motors have been around for a long time; however, they have one flaw – They operate within a limited range of torque (turning or rotational energy of an engine). Or put another way, electric motors have limited efficiency to operate over a broad speed range. In practice, this means the better electric cars need at least two electric motors – one for slower speeds, and one for highway speeds, as there is no gearbox like a conventional car.

However, this is all changing now with a new technology that uses Artificial Intelligence (AI) to adjust and manage the electrical output, somewhat like how a gearbox works in a car. The technology works for generators, electric motors, and also for batteries. It is simply revolutionary.

Exro Technologies Inc. (CSE: XRO | OTCQB: EXROF), the company that is pioneering and commercializing this technology, states that it is “revolutionizing energy conversion to improve performance, efficiency and longevity in electric motors, batteries and generators.”

Exro’s technology aims to pioneer the way energy is stored, transferred and used by keeping the energy flowing at an optimal rate. They are doing this by commercializing an intelligent energy management system (IEMS) that uses Artificial Intelligence (AI) and big data analytics to change the way energy is transferred, used, and stored. By creating a dialogue between motor coil switching, motor controls, and battery management systems, Exro creates a system that brings together and integrates several disciplines, to improve efficiency, reliability, safety and maintenance.

Exro Technologies revolutionary intelligent energy management system

Exro’s patented Dynamic Power Management (DPM) system is a proprietary software that controls electric motor coils through individual coil switching and expands speed/torque capability and improves machine efficiency across a wider operating range.

Exro’s technology also helps lithium ion batteries last longer

This technology also applies the principle of managing energy as it converts at the individual level to lithium ion batteries, by managing the charge and discharge of energy at the individual cell level of the battery. The aim is to improve the battery performance and efficiency, which should result in longer usage and possibly a second life of a battery. Exro’s technology seeks to give a useful second life to billions of batteries that today are thrown away.

Collaboration with Potencia Industrial

As a result of successful testing, the company has received its first production order for motor drivers from Potencia Industrial. The motor drivers are designed for independent integration as well as being one of five modular units that comprise the overall Intelligent Energy Management System. The Driver connects the battery to the electric motor and enables the motor to run with greater efficiency with high reliability and safety features.

Potencia is integrating Exro’s motor drivers into vehicles that have been identified for the conversion of internal combustion engines to electric motors. Potencia is working on converting taxis in Mexico City from conventional to electric vehicles (EVs). The city has 250,000 taxis all needed to be converted to EVs.

Delivery is anticipated to start in Q1 2020 and will be done in phases allowing Exro to ramp up production while optimizing processes.

Sue Ozdemir, CEO of Exro, stated: “This is a big milestone for the Exro team as it marks another success in tackling the energy market and utilizing our technology to partner with companies who are working to make a difference.”

Electric motors run almost every machine in society

Collaboration with Lithium Werks

In collaboration with Lithium Werks (a large Chinese battery manufacturer), Exro is applying its technology to the lithium-ion battery to be able to make the battery work more efficiently and extend battery life. Also if one battery cell fails instead of losing the whole battery, Exro’s technology is able to do a workaround that can by-pass the damaged cell and keep the battery working.

The market opportunity for Exro’s technology is enormous

This is just the start of the Company’s strategic commercialization initiatives as they look to grow partnerships with customers around the world. The market for better electric motors, generators, and batteries is enormous. Exro is at the cutting edge of both future design and commercialization and is already in collaboration with two large and successful global companies.

Exro Technologies Inc. is a Vancouver, BC-based technology company with a market cap of just C$ 20 million.




Jean-Pierre Colin on dynaCERT’s strategic alliance with MOSOLF, one of the largest trucks servicing companies in Europe

“Excellent news coming out of Europe. We have a certification and homologation in Europe – in Germany. Took us two years to get that. We announced that a few months ago. Now we have announced that we have a strategic alliance with MOSOLF. They are one of the largest trucks servicing companies in Europe. Very credible, very related. They have agreed to purchase a thousand units right off the bat, represent us in five countries in the European Union.” States Jean-Pierre Colin, Director at dynaCERT Inc. (TSXV: DYA | OTCQB: DYFSF), in an interview with InvestorIntel’s Tracy Weslosky.

Jean went on to say that dynaCERT’s patented technology underwent rigorous testing and validations in Germany. Some of the best experts in diesel engine technology in Germany carried out four different tests on dynaCERT’s technology which validated that the technology helps reduce fuel consumption in diesel engines by up to 20% and also reduces carbon emission by a significant amount. Jean further added that dynaCERT has received numerous awards for its Carbon Emission Reduction Technology. The company has received a German innovation award. dynaCERT has also penetrated the mining industry with its emissions reduction technology and has received an award in Colorado from the mining industry. Jean also spoke on dynaCERT’s HydraLytica™ telematics system. He said that the system can prove by each individual diesel engine the fuel-saving and carbon emission reduction. The company is applying to have its emission-reduction technology certified as a Carbon Credit creator for diesel engines.

To access the complete interview, click here

Disclaimer: dynaCERT Inc. is an advertorial member of InvestorIntel Corp.




Nano One looks to be a winner as they work to make a better lithium-ion battery

It’s been an exciting few weeks in the world of nanotechnology and lithium-ion batteries. The Royal Swedish Academy of Sciences has awarded the Nobel Prize in Chemistry for 2019 to the developers of the lithium-ion battery.

The foundation of lithium-ion battery development was laid during the oil crisis in the 1970s; however, its importance has grown each decade. Given we are now entering the electric vehicle boom, our dependence on the lithium-ion battery will grow even greater. The 2019 Nobel Prize in Chemistry was awarded to the following 3 Scientists; John B. Goodenough, M. Stanley Whittingham, and Akira Yoshino.

Stanley Whittingham started to research superconductors and discovered an extremely energy-rich material, which he used to create an innovative cathode in a lithium battery. John Goodenough predicted that the cathode would have even greater potential if it was made using a metal oxide instead of a metal sulfide and by using Goodenough’s cathode as a basis, Akira Yoshino created the first commercially viable lithium-ion battery in 1985.

The 2019 Nobel Prize for Chemistry was awarded to the 3 inventors of the lithium-ion battery

Nano One could be the next winner

Canada’s Nano One Materials Corp. (TSXV: NNO) has the potential to make today’s lithium-ion battery much better using nanotechnology. Nano One has developed powerful technologies that are fully patented. Nano One uses a scalable industrial process for producing low cost, high performance, battery materials. Now that’s a winning formula and means that one day Nano One could potentially also be receiving awards for chemistry.

The Nano One process aims to increase performance and safety while reducing the cost of battery materials for applications in advanced lithium ion batteries used in transportation, grid storage and consumer electronics.

Nano One gets a visit from Canadian Prime Minister Justin Trudeau

You know you are doing something right if the Prime Minister comes to check out your work. Nano One were very excited to receive a personal visit from Canadian Prime Minister Justin Trudeau to Nano One’s pilot facility in Burnaby BC.

Prime Minister Trudeau received a tour of the pilot and laboratory facility and watched a demonstration in the process of making cathode materials such as lithium iron phosphate (LFP) and lithium nickel manganese cobalt (NMC). He then participated in the assembly of electrodes and separators into lithium ion battery test cells.

The Prime Minister was visiting British Columbia to announce a climate change initiative and a cut in corporate taxes for companies that develop technologies or manufacture products that have zero emissions.

Mr. Dan Blondal CEO of Nano One commented on the visit: “It is great to see increased support on climate change initiatives, and Nano One is pleased to have the ongoing support of the Government of Canada.”

Nano One receives further support

Nano One has received over $10 million in non-dilutive non-repayable support funding that has been critical in expanding its scientific, engineering and marketing activities as it advances towards commercialization. As well as funding from the Canadian government, Nano One has strategic partnerships with Volkswagen, Pulead Technology and Saint-Gobain.

The news of the Nobel Prize in Chemistry for 2019 having been awarded to the developers of lithium-ion batteries will only bring greater attention to lithium and Nano One’s technology. Ever since they entered the market in 1991, lithium-ion batteries have continued to revolutionize our lives. They have laid the foundation of a wireless, fossil fuel-free society, and are of the greatest benefit to humankind.

Nano One’s patented process for making cathode materials is changing the way the world makes battery materials, addressing waste, cost and performance. The mission is to establish its patented technology as a leading platform for the global production of a new generation of battery materials.

Certainly Nano One looks to be on the winning path with top tier international partners (Saint-Gobain, Pulead, and Volkswagen), potential award winning technology, and backing from the Canadian Government.

Nano One looks to be a winner and still with a market cap of only C$ 81.9 million.




Cobalt prices have recovered by ~40% but will the rise continue?

Cobalt metal spot prices have shown a remarkable recovery in the past 2 months and are up ~40% from the July low. This is mostly due to the news that Glencore will shut down their giant DRC Mutanda Copper-Cobalt Mine starting in 2020 for 2 years to help balance the market. Other DRC miners have also been reducing cobalt supply. It has even been rumored that Glencore and others are looking to sell down their DRC assets mostly due to the horrific new tax regime the DRC brought in last year, which basically takes a 10% upfront cobalt royalty, and taxes the profits at 50%. Clearly this leaves very little for the miner, who has in many cases invested hundreds of millions of dollars on mine and plant infrastructure. The DRC Government has become too greedy and investment into the DRC is withdrawing as a result.

Cobalt prices have recovered by ~40% since the July 2019 lows

Will the cobalt price rise continue?

The answer to this depends on your time frame and what happens with both cobalt demand and supply. In the short term the cobalt price rise is likely to stall as restocking of inventories completes and China’s electric car sales have temporarily slowed in July and August.

The long term answer depends on what happens with future cobalt demand and supply. The chart below gives a good guide.

Bloomberg’s cobalt demand versus supply forecast

Most analysts have similar forecasts to the above. The consensus is that from now until about 2022 we will see cobalt supply meet demand; however from 2023 most see cobalt deficits increasing each year. These forecasts assume electric car sales will continue to grow at a reasonable pace, which for now seems likely. Bloomberg’s forecast is based on electric car share rising from 2.2% in 2018 to 3% in 2020, 11% by 2025, 28% by 2030, 43% by 2035, and 57% by 2040.

Interestingly recent news has suggested China is likely to announce their new electric car sales targets by year end. The proposed targets from China shown below are more aggressive than Bloomberg’s ‘global’ forecasts.

China’s proposed targets are said to be (not yet official and under discussion):

  • 2025: 20% of sales (already established).
  • 2030: 40% of sales.
  • 2035: 60% of sales.

Bloomberg’s electric car sales forecast to 2040

Source: Bloomberg 2019 Global passenger EV sales outlook

The cobalt cliff may hit from 2022/23

The so called ‘cobalt cliff” (massive cobalt deficits) still threatens to hit the market from 2022/23. This is made even more likely due to the fact truly affordable electric cars should be arriving globally by 2022, when electric cars become the same price as conventional cars. We are seeing signs of this already in China with electric cars selling under US$20,000. In fact the new 2020 Renault City K-ZE electric crossover (26.8 kWh battery pack, 250km range) has been reported that it will sell for about US$ 9,389 (other reports say US$10,000) after subsidies in China. In this case my thought is the battery will add an extra US$ 5000-6,000 (as Renault often quote without the battery included), but still the total package should be about US$15-16,000 (certainly under US$20,000). The era of truly affordable electric cars will have arrived, at least in China in 2020, and globally it should be by ~2022. This will accelerate demand for cobalt especially given Chinese subsidies now require a minimum 250kms of range to be eligible.

The 2020 Renault City K-ZE – The price will be under US$20,000 in China

My model suggests that from 2022 electric cars could become cheaper than conventional cars; however this will depend on battery prices falling further. A massive spike in electric car sales from 2022 will put enormous pressures on the EV metals supply chain, and could again see EV metal prices spike higher, particularly for supply constrained cobalt.

For cobalt investors I would say just bide your time, the next boom is not here now, but it is not far away.