Volkswagen Group Research joins Nano One to create a new generation of lithium ion batteries
The global nanotechnology sector is expected to top US$ 125 billion by 2024. Meanwhile, the lithium-ion battery cathode market is forecast to reach a market size of $23 billion by 2025. A small Canadian company named Nano One Materials Corp. (TSXV: NNO) has a shot at gaining up to 5% of the lithium cathode revenue (up to US$1 billion), and perhaps even more in the global nanotechnology space if things go well.
The Nano One market opportunity
Nano One Materials Corp. is a nanotechnology company with a focus on improving the lithium ion cathode for lithium-ion batteries. Nano One has a scalable industrial process for producing ‘low cost’, ‘high performance’ battery materials and a wide range of other advanced nano-structured composites. Nano One now has some very large partners including Volkswagen (new this week), Pulead Technology and Saint-Gobain.
Nano One’s giant project partners
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Nano One’s partners on the project now include Volkswagen Group Research, who has just joined previously announced Pulead Technology and Saint-Gobain. To address massive demand for advanced battery technology, Nano One now has a pipeline of 20 plus strategic interests already in place.
Volkswagen Group Research has joined Nano One’s consortium of strategic partners to accelerate the efforts in developing and commercializing process technology for the production of lithium-ion battery materials. Leveraging knowledge from both companies to identify materials and processes for a new generation of lithium-ion batteries, it is expected the success will pave the way to commercial applications and large licensing opportunities. Volkswagen is the largest automaker by worldwide sales (2016 and 2017). The group’s biggest market is in China, which delivers ~40% of its sales and profits. It operates 122 production plants in 20 European countries and a further 11 countries.
Pulead Technology is one of China’s leading Li-ion battery cathode producers. Together with its strategically positioned subsidiaries and JVs in cathodes and separators, Pulead is becoming a key player in the Li-ion battery supply chain.
Saint-Gobain is a 40 billion Euro French ceramics giant operating in 67 countries with more than 180,000 employees. The Company designs, manufactures and distributes materials and solutions. Originally a mirror manufacturer, the Company now also produces a variety of construction and high-performance materials across many sectors.
Nano One’s Pilot Plant
Nano One has also built a pilot plant to demonstrate high volume production and to optimize its technology across a range of materials. This also has been with the assistance, support, and funding from the Government of Canada through Sustainable Development Technology Canada.
Operating in a specialized R&D intensive industry, businesses like Nano One have had to rely on government grants to commercialize nanotech innovations. It is these companies that are the most likely to have staying power in the highly capital intensive domain.
Nano One receives C$5 million support from the Canadian Government via SDTC
To support Nano One’s Scaling Advanced Battery Materials project C$5 million has this past week been approved from Sustainable Development Technology Canada (SDTC), a Canadian government foundation to support green tech Canadian companies.
Leah Lawrence, President and CEO of SDTC, stated: “Nano One is leading that change through its low-cost production of high performance lithium ion battery materials, which are broadly used in electric vehicles, energy storage and consumer electronics.”
Nano One CEO Mr. Dan Blondal stated: “This project will support scale up activities with industrial partners and collaborators, and we are thrilled to have SDTC’s approval. Nano One’s project proposal to SDTC involves five multinational manufacturers and European automakers contributing at various stages of research, development, piloting and commercialization.”
The SDTC C$5 million support is a key endorsement of the work Nano One has completed to date. Having global partners to collaborate with and the second round of grant funding shows Nano One is moving in the right direction. Given Nano One is mainly targeting the cathode market which is set t0 grow exponentially to $23 billion by 2025, Nano One is definitely set to prosper if they can continue to succeed with their technology. The rest of 2019 should be very exciting as these relationships move forward and other partnerships are bought to the forefront.
Nano One Materials Corp. is headquartered in Burnaby, Canada; and has a market cap of C$ 92 million.
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>