Nano One Materials (NNO.V) (LBMB.F) (OTC: NNOMF) released an important update on its pilot plant, reporting it to be on time and under budget. This is welcome news. Yet the market yawns. Nano One’s market cap is C$30 million, and its share price is up 180% from its 52-week low. However, the average market cap and share price gain (from 52-week lows) of a small group of lithium players in jurisdictions around the world is C$340 million and 485%.
By no means do I suggest that Nano One should be a $325 million company, but the 485% average gain of Li companies demonstrates how seriously investors are taking the electrification of the global transportation fleet. Lately, the anticipated fleet has been expanding well beyond cars to include busses, garbage trucks, mail trucks (including Fed-Ex and UPS) mid & long-haul trucks, fire trucks, ambulances, cargo ships, boats, ferries, military transport, road / construction / mining equipment (bulldozers, cranes, forklifts, tractors, dump trucks, snow plows, bulldozers, excavators) and, eventually, even business & commercial aviation.
Make no mistake, this eventuality is coming and it had been expected, but not for a decade or two. Yet, timelines are compressing, tipping points in many global markets are poised to spring in half the time predicted a year ago.
How does Nano One benefit? With a dozen or more distinct R&D programs across the electric car space alone, there are going to be dozens of electric batteries entering (and exiting) the marketplace. Some batteries might not use Lithium, but all will consume an increasing number of cathode materials. Who better than Nano One to facilitate the high demands of auto and large-scale battery manufactures? With the stakes quite high, executives need to take advantage of every opportunity possible to cut costs. Nano One’s technology and process promises to cut 30% or more for its customers.
Why launch into this now? I read this excellent update on Nano One by Chris Parry of Equity.Guru, and it inspired me to revisit the situation. There was also this piece that was posted on InvestorIntel, written by Christopher Ecclestone in mid-September.
Nano One’s core technology and process is poised to revolutionize not just the cathode materials side of electric batteries, but for other nano-material applications as well. By that I mean the opportunity for other companies to license Nano One’s IP is rapidly approaching.
This is an exciting time for the Company. Further de-risking of the business model and ongoing talks with prospective partners/customers should lead to big news, it’s a question of when.
CEO Blondal reports the imminent hiring of another Phd battery scientist, this should not be taken lightly. Phd battery scientists are not nearly as common as say, university professors, and they’re certainly in very high demand. Each new hire of this caliber is a strong vote of confidence in the Company. Last but not least, I reiterate to readers how strong the Company’s patent portfolio and IP is. As per the following press release, Nano One filed another patent application and there are more in the queue.
Lately, I’ve been trimming my biggest winners in the gold & lithium sectors and redeploying funds into Nano One Materials.
Here’s the October 12th press release from the Company
“Nano One’s pilot plant is key to our business plan and strategic objectives,” said Mr. Blondal “and we are pleased to report that construction is proceeding on schedule and under budget. It will enable us to make larger volumes of cathode material in 2017 and to showcase Nano One’s patented technology to market stakeholders who are eager to see it operating at the pilot scale.”
All critical components of the pilot are on order and expected to arrive by the year’s end with some key items already being fitted for installation. Final pilot assembly will take place in Nano One’s new facility, which is also being remodelled to house a new laboratory. The facility adds much needed space and enables expansion of the team to include another PhD battery scientist, an engineering project manager and business development resources, starting in October.
Nano One’s patented technology will be demonstrated in these pilot sized reactor vessels
As a result of its recent efforts on pilot process optimization, Nano One has identified opportunities to expand and protect its Intellectual Property portfolio. Nano One filed another patent application in September and has more in the queue.
Nano One’s Principal Scientist, Dr. Stephen Campbell, adds that,
“We are continually enhancing our processes and developing new chemistries, and we are pleased to be adding more patents pending and knowhow to our technological offering. We will demonstrate these advanced manufacturing technologies in our pilot and we will make a range of cathode materials that are suitable for electric vehicle and grid storage batteries.”
NANO ONE MATERIALS CORP
Dan Blondal, CEO
For information with respect to Nano One or the contents of this news release, please contact John Lando (President) at (604) 669-2701 or visit the website
Management Team & Board of Directors
Nano One Materials Corp is developing novel and scalable processing technology for the low-cost production of high performance battery materials used in electric vehicles, energy storage and consumer electronics. The patented technology can be configured for a wide range of nanostructured materials and has the flexibility to shift with emerging and future battery market trends and a diverse range of other growth opportunities. The novel three-stage process uses equipment common to industry and is being engineered for high volume production and rapid commercialization. Nano One’s mission is to establish its patented technology as a leading platform for the global production of a new generation of nanostructured composite materials. For more information, please visit http://www.nanoone.ca
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