Key factors associated with developing next-generation rechargeable batteries: 1) developing rechargeable battery materials without using high-cost raw materials; and 2) ensuring capacity and power applicable for EVs
- Given that rechargeable batteries account for roughly 45% of EV manufacturing cost (56% including battery management systems (BMS)), use of high-cost raw materials needs to decline
- Voltage or current need to be increased in order to expand battery power (P=VI)
1) Method for increasing voltage (V): Escalate voltage difference between cathode and anode materials by increasing voltage level for cathode materials
2) Method for increasing current (I): Ensure mobility of ions and electrons between cathode and anode materials via technological improvements in electrolytes and separators.
Eoin Treacy's view If the long-term potential of mobile devices, electric vehicles and various
renewable energy power stations are to be realised significant innovation will
be required in battery technology. Korean companies have been among the leaders
in this sector for a number of years
The sector pulled back sharply from July but most of the better performing shares found support in October, have held progressions of higher reaction lows and pushed back above their respective 200-day MAs. Korea's, Samsung SDI and LG Chem, the USA's Johnson Controls, Tesla Motors and EnerSys Inc. all share a relatively similar pattern. Hong Kong's BYD found support in October following a two-year downtrend and has since staged its largest rally since 2010. A sustained move below HK$17 would be required to question medium-term scope for additional upside.