Nano One and Pulead’s LFP battery partnership offers the power to change the electric vehicle market.
Lithium Iron Phosphate (LFP) cathode for Li-ion batteries is very popular with heavier and lower range electric vehicles, especially in China. Although it is less energy dense than Nickel Manganese Cobalt (NMC) it is more durable and cheaper (no cobalt). This is making it popular in China with e-buses, e-trucks, energy storage, power tools and shorter-range electric cars. BYD Co. leads the world in e-buses so they like LFP cathodes for many of their vehicles.
The cathode market is forecast to be a USD$23 billion market by 2025
Nano One Materials Corp. (TSXV: NNO) is a Canadian technology company with a scalable industrial process for producing low cost high performance battery materials. The Company will be concentrating on LFP cathode in the near term using its proprietary low cost cathode making processes.
Nano One has recently entered into joint development agreements with two large companies.
Nano One agreement with Saint Gobain
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The Saint Gobain deal announced last December brings credibility as they are a major global ceramic materials company. This collaboration with a €40.8 billion ceramics giant like Saint-Gobain is a smart move by Nano One.
Nano One agreement with Pulead Technology Industry
The second deal is with Pulead Technology Industry and has Nano One excited. This partnership was announced on January 25, 2019. The objective of this joint development effort is to identify a viable supply chain and design a low cost LFP plant using Nano One’s proprietary processes. Pulead is one of the most trusted and established cathode manufacturers in China. In fact, they supply LCO cathode materials to Amperex Technology Limited (ATL) who make batteries for Apple and are expanding their capacity to capture a greater portion of the LFP growth opportunity.
CEO of Nano One Materials Corp., Mr. Dan Blondal stated: “After two months, our teams are working well together and developments at the lab and pilot scale are moving along at a good pace. We have identified viable raw materials, are refining our processes, and are evaluating resulting materials against target specifications. Performance targets and economic modelling remain on track as we optimize Nano One’s innovative process for the commercial production of LFP.”
If Pulead and Nano One are successful in jointly developing Nano One’s process into Pulead’s production lines, then Nano One will likely see a royalty deal struck that will bring millions to Nano One’s bottom line. That’s the exciting part.
Nano One’s proprietary process technology
The LFP market is a tremendous opportunity for Nano One
LFP will represent a tremendous market opportunity for Nano One with market demand anticipated to double to over 200,000 tonnes/yr in 2025. China has even said that 61% of passenger vehicles and 94% of buses will use LFP batteries. LFP is having a terrific resurgence due to its low cost, safety and stability, beating all other cathode materials in that area. Another reason companies are choosing LFP is that it contains no cobalt. While cobalt may be needed for long range luxury EVs and portable consumer electronics, it isn’t needed in LFP battery applications such as buses, grid storage and entry level 200 km EVs, where safety, longevity and cost are more important than range.
Amazon announced they want to bring clean energy to their delivery fleet. Last mile and short-range delivery trucks are also likely to be LFP powered as that is the most cost effective and the safest material. Also in China LFP batteries are almost at cost parity with lead-acid batteries, still one of the largest battery markets. With growing pressure in China and elsewhere to ban lead-acid for its environmental hazards, LFP could see a big boost from low speed EVs (80 km/hr).
While Nano One continues to work with Pulead on LFP for today’s e-buses and e-trucks, the company continues to innovate and address other battery chemistry challenges. Nano One has over 18 companies in its business development and evaluation pipeline, including the 2 already discussed. With such a large and growing pipeline, the company is expected to announce more partnerships later this year, and get investors very excited.
Matthew Bohlsen holds a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in Financial Planning. He has 30 years ... <Read more about Matthew Bohlsen>