While the modern world continues to march toward a lithium-ion powered future, China quietly continues to tighten its grip on the industry at every level.
Just yesterday, Eve Energy, a China-based lithium battery-maker, announced that it had initiated the construction of its own kind of gigafactory in Kulim, a city in the Malaysian state of Kedah.
The factory, which comes at a cost of around half a billion dollars, will be part of a larger industrial park and will be focused on the production of 21700-format cylindrical lithium-ion batteries.
Once completed, this will be the 53rd such facility operated by Eve Energy.
Construction is projected to take less than three years.
“By establishing this cylindrical battery manufacturing plant in Malaysia, we are demonstrating our commitment to competitiveness in the international market,” commented Lim Bee Vian, deputy CEO of the Malaysian Investment Development Authority (MIDA). Join Wealth Daily today for FREE. We’ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: “How to Make Your Fortune in Stocks”
It contains full details on why dividends are an amazing tool for growing your wealth.
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To the Chinese, "Competition" Is Just a Polite Word for Dominance
The underlying truth here, of course, is more simple.
It’s not the Malaysians that are committed to competitiveness, but the Chinese that remain committed to complete control of one the most — if not the most — important tech sector in operation today.
Deng Xiaoping, who served as leader of the Chinese Communist party up until 1992, was once quoted as saying: "To get rich is glorious."
It was a belief he carried with him throughout his career as he laid much of the groundwork for China's modern industrial capacity.
Part of that groundwork included an obsession with lithium, which started long before the lithium battery craze was anything more than an anecdote.
As the Chinese Communist Party gradually learned to exploit the power of capitalism for its own good, a national policy of striving for dominance in lithium production from mining to end-product manufacture took shape.
Today, China has achieved many of its goals.
It dominates in the battery production sphere, dominates in lithium refinement, and will likely also soon dominate in lithium mining to boot, thus completing its quest for full vertical integration.
The painful truth that most Western onlookers will not face is that China isn’t simply doing this out of the goodness of its heart or even out of good old-fashioned monetary greed.
This Is How the CCP Weaponized Your Consumer Spending
China knows a strategic advantage when it sees one, and now that even our biggest, most famous EV car brand — Tesla — is buying Chinese batteries, it's impossible to ignore.
The only way out is to fight fire with fire and compete with China in battery production to at least achieve independence.
Unfortunately, with the Chinese building a dozen factories for every one of ours, the brute force approach is precisely what they want us to adopt, as that’s a war they know they can win.
Our only viable plan of attack is therefore not in quantity but in quality.
And that's the approach just about every major carmaker and battery-maker in the free world is researching.
Right now there are a number of next-gen battery designs in testing to be the replacement to the lithium-ion standard of today.
One of them, perhaps the most promising of all, comes from Australia and puts everything you’ve seen and heard about in the realm of rechargeable batteries to shame.
Next-Gen Batteries That Will Change the Game
These new batteries hold twice as much charge. They last 2–3 times as long. They don’t catch fire spontaneously.
Most dramatic of all, they charge up to 70 times as fast.
An EV equipped with these batteries could literally be charged from empty to capacity in less time than it takes you to fuel your car at the pump.
Best of all, these batteries require no dependence on Chinese lithium or any other Chinese-supplied elements.
The key to these world-changing innovations is a material that itself is a marvel of science.
One of the world’s first materials engineered on a molecular level, it won its key researchers the Nobel Prize in Physics just 13 years ago.
Today, it’s about to change the battery industry forever.
Now, here’s the important part that every investor needs to know: This isn’t a Hail Mary.
Get It Today on Your Online Brokerage Account
The risk has already been minimized, as these batteries are off the drawing board and in early production right now as you read this.
By next year, they could be on the shelves, powering common consumer devices like tablet and laptop computers.
You can look around for this company, but I doubt you’ll find it, even though it’s already trading on two North American exchanges.
The reason is that it’s tiny — less than 1/1000th the size of some of the biggest names operating out of mainland China…
Yet its product could render the whole lithium-ion industry obsolete by the middle of the decade.
I’ve spent months researching this company and its groundbreaking product, and with the summer trading lows hitting the small caps and microcaps the hardest, this could be the best and last opportunity to really get in at pre-commercial valuations.
You can wait for this company to get coverage from the big financial news media outlets.
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.
Fortune favors the bold,
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.