Dear Reader,
From supercars to private jets, all things that were once exclusively powered by fossil fuels are now slowly transitioning over to electrons.
Just last month, Ferrari CEO Benedetto Vigna confirmed that the company was set to release its first pure EV sometime next year.
The reported cost: $500k.
And the first corporate-sized electric airplane, built by aerospace startup Eviation, flew all the way back in 2022 — proving that a small battery-powered passenger plane could safely make short hops of up to 250 miles.
So things are definitely looking up for battery-powered consumer goods and heavy machinery, despite what the post bubble lithium market may be telling you.
But what few investors are talking about is a kind of battery which will never make it onboard a plane, a flying car, or into the next electric super-exotic car.
Vanadium Flow: It’s Big. It’s Heavy. It’s Reliable. It Lasts Forever
That battery is the Vanadium-flow battery, and it’s about as sexy as a diesel locomotive.
I mean that more literally than you probably think.
Vanadium flow batteries have relatively low energy density, which makes them too big and bulky to put into anything designed to be portable, or light, or fast, but for one particular application, that doesn’t matter at all.
You see, while vanadium batteries are inefficient in size and weight, what they can do is last for decades — something that no high-energy density lithium battery could ever dream of.
I’m talking about 25 years or up to 25,000 charge cycles, which makes them absolutely perfect for utility scale energy storage — those giant batteries which provide power storage for solar or wind farms.
These are literally the biggest batteries in the world. Without them, no power plant with cyclical or inconsistent production patterns would be able to function.
That’s every solar farm. Every wind farm. In the U.S. alone, the sum total production capacity for renewable energy is around 900 terrawatts per year — just shy of the total annual energy output of Japan.
Bulkiness doesn’t matter, and because they’re immobile, neither does weight. Longevity and reliability, however, matter more than anything.
Vanadium batteries last up to three times longer than the current standard option for utility grade power storage, which is lithium phosphate.
Why A 25 Year Battery Matters
In fact, they last as long as the projected life span for your average renewable energy project.
Economically and practically, this is enough to completely change the game.
They’re also fire-proof, which removes another major hazard commonly associated with lithium batteries.
As certain industries start differentiating away from lithium-based batteries, vanadium flow will emerge as the #1 contender to dominate the renewable power storage industry.
That alone sets the vanadium battery business up for at least 2 decades of solid growth.
Today, however, the world leader in this technology is a barely known $130M market cap company operating out of a sleepy Scottish town.
Investors have largely ignored, or simply not heard the story. Few are even aware of the technology or why its benefits are relevent.
The U.S. Department of Energy Is A Client
Our own Department of Energy, however, has taken notice, ordering more than 80 megawatts of capacity from this company for six Federally funded projects in the U.S.
Nothing garnering that sort of attention stays a secret forever — especially at such a miniscule valuation.
The future is bright, for sure, as this particular corner of the rechargeable battery niche is also one of the fastest growing.
If history paints an accurate picture of the future, most investors will find this company in a few years, after it’s grown in size and have begun to make a real dent in the industry.
Smart investors, however, will look at the company today, and see the opportunity for what it really is — a potentially life-changing opportunity.
Get all the facts right here, before news starts to spread. Fortune favors the bold, Alex Koyfman His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Energy and Capital. To learn more about Alex, click here.
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