The mass manufacturing of electric vehicles (EVs) is essential in achieving a carbon-neutral society. There is one hurdle in the way of this plan through – lithium.
In a previous article titled The Electric Vehicle (EV) Revolution is coming – Invest young, retire early, we touched upon the rapid development of the electric vehicle industry and the high demand of resources needed to create EV batteries.
Electric vehicles (EVs) are powered by precious metals in the form of lithium-ion batteries. Due to the rapid increase of demand, the material will:
- Be incredibly expensive as its value becomes subject to inflation.
- Be scarce in supply. These battery metals are difficult to source and not in infinite supply.
However, one company has a solution to this.
American Battery Technology ($ABML) has built a clean technology that increases the production of primary metals used for EV batteries.
Their platform creates a circular economy for battery materials that is both ethical and environmentally sustainable. They achieved this by focusing on the following:
- Recycling lithium-ion batteries to recover and reuse battery metals.
- Extraction of battery metals from primary resources and development of new green technologies that can be deployed at scale.
$ABML is based in Nevada, where the largest supply of battery-grade metals is available in the US. Conveniently, their HQ is based just down the road from that of Tesla and they have recently acquired multiple acres of land next door to the Tesla gigafactory.
Interestingly, the current CTO of $ABML is Ryan Melsert, an ex R&D Manager at Tesla. In this former job, he led a team of 10 engineers, working on huge projects such as constructing and developing their gigafactory. After he left, several Tesla engineers and other members of senior management have also followed suit and joined American Battery.
Long term speaking, based on logistics, internal partnerships and synchronicity of offering, it makes sense that a partnership could one day develop between these two companies.
Why am I investing in the $ABML stock?
$ABML is currently working closely with the US department of energy as a consultant and lead in pushing for a cleaner circular economy in the United States. Earlier this year they were provided with a $4.5m grant alongside American Lithium Corp, which shows the level of trust being provided by the US Department Of Energy (DOE). American Lithium Corp $LIACF will have mining rights in Tonopah and will be utilizing the extraction tech of $ABML on-site. It’s also apparent that the company will be stockpiling critical materials for the US government as they push to become an “American Owned” economy.
Through the companies ties to the US Department of Energy, it’s also known they previously submitted a proposal to the advanced battery consortium which could see potential partnerships lined up with big brands such as GM, Ford and Chrysler.
Their stock is currently an OTC (Over-The-Counter), though they have submitted their request to join the NASDAQ. Right now, $ABML is $1.92 a share with a $1.2bn market cap. While the company has suffered stigma for its revenues/earnings and holds a “speculative status” I recommend that those considering an investment here look at the bigger picture.
The first pilot plant once constructed is forecasted to bring in $200m revenue and this is just the beginning, their commercial plants are forecasted to bring in $2bn revenue yoy and they have plans to construct multiple just in the next 5 years. Tesla has generated $30bn+ since its foundation, with 5 plants running. In comparison, $ABML could do a ⅓ of this in just one year.
Is it too late to buy?
The journey has only begun for American Battery Technology Company. This stock could significantly increase in value if they manage to achieve all they have mapped out and the EV sector continues to grow ahead of the global eco goals. NASDAQ uplisting is just around the corner, which will completely change how the larger funds/institutions view this stock.
Below is a list of other EV stocks I believe are worth researching/investing in:
$THCB (Microvast) – Gigafactory/Battery Manufacturing
$EVGO (EVGO) – EV Charging
$CHPT (Chargepoint) – EV Charging
$CCIV (Lucid Motors) – EV brand/tech company
$NIO (NIO) – EV brand/tech company
$FSR (Fisker) – EV brand
$ARVL (Arrival) – EV Buses
Thanks for taking the time to read this article – as a disclaimer, this is not financial advice and I am holding a long position in the $ABML stock.
Published by Josh Craven
@bvllish_trader on Twitter.