GM's Volt

"GM goes electric with concept car" got the news today at Reuters and MSNBC.

We read further and see that GM's (NYSE: GM) Volt proposition will be and autonomy of 40 miles and the possibility of recharge included in the vehicle, that will provide a combustion engine solely for that purpose. The battery technology is said to be lithium-ion.

Which will be the suppliers of the batteries, the critical part of this hybrid vehicle? Reuters explains:

"GM awarded lithium-ion battery development contracts for its Saturn Vue Green Line hybrid to Johnson Controls Inc. affiliate Johnson Controls-Saft Advanced Power Solutions and Cobasys, a venture of Chevron Corp. and Energy Conversion Devices Inc. . Cobasys will work with privately held A123Systems to develop the technology."

When?

"Lauckner said the Volt should be ready for production around the same time the lithium-ion batteries will be, which GM expects to be in two to three years."

So, now we know that GM has made the announced move and chose, ADVFN tell us, Johnson Controls (Nyse: JCI) and ultimately A123Systems technology and the batteries will be provided in "two to three years".

Now, another question: who's with Alcoa (NYSE: AA) and Altair Nanotechnologies (NASDAQ: ALTI)? Altair has already announced a complete product...


Disclaimer: I own shares of Altair Nanotechnologies.

Motley Fool crusade against Altair

Motley Fool did it again to Altair!... Such a systematic punishment - see our post "Why the Fools?..." of December 4, 2006... - can no longer be viewed as simple and pure harshness of analysis.

In the previous commentary, on August 24 2006, Jack Uldrich has pinpoint:

"The company only has about $14 million in cash on hand, and with a current burn rate of slightly more than $1 million a month, Gotcher must begin delivering within the next year." [bold ours]

Now, Uldrich states:

"(...) the company had raised an additional $23 million by offering 9.3 million shares at $2.70 apiece. This news, too, can be read a couple of different ways.
It might be good news to some, because it suggests that the company is on schedule to begin mass-producing its latest nanotechnology-related product -- its lithium-ion battery technology -- and needs money to ramp up for that purpose. For others, it could easily be viewed as the latest in a long line of management's attempts to bilk unsuspecting investors with the promise of a breakthrough technology.
Where do I land? Count me in the skeptical camp (...). Altair has been promising results for five years now, with nothing to show for it. Furthermore, for a company with paltry revenue, its stock -- even in its newly diluted state -- remains ridiculously expensive." [bold ours]

The future - the ultimate judge - will prove commercially viable products and financial results or that Jack Uldrich/Motley Fool crusade is right... I trust Altair.


Disclaimer: I own shares of Altair.

Why the Fools?...

Why does Motley Fool continues to punish Altair Nanotechnologies?!... Over and over again, when Altair Nanotechnologies reaches some milestone in its electric batteries program, Motley Fool appears to cool Altair quotes increase.

Is the "strict disclosure policy" of Motley Fool, and its employees, also enforced to other preference and bias than the ownership of stocks? Why is this criticism of Altair development again simultaneous to the praising of promises of A123Systems and also of Valence?...

"Yes, but...". Jack Uldrich states that Altair has already integrated the potential revenue into the stocks price; that raises doubts about the recharger, that you have to wait for the orders, that the batteries can explode!...

Why all these systematic buts whenever Altair stocks performs well?...


Disclaimer: I own stocks of Altair.

Electric batteries versus fuel cells

The war on the auto sector between electric batteries (nano titanate, lithium ion, nickel metal hydride and nickel cadmium) and fuel cells seems to replicate the late war between the Super 8 camera and the VCR technology.

If the electric batteries developers - Altair Nanotechnologies, Valence Technology and A123 Systems - accomplish their promised goals, then the fuel cells technology can be overidden and even become a pre-flop - a flop that doesn't even happen. That is, fuel cells, which, furthermore require a hydrogen station apparatus, batteries could never be launched.

Electric batteries developers say that batteries can be charged at stations or at the user garage. Altair has announced that Nanosafe batteries can sustain 15,000 cycles (charge/discarge), last for 130/250 miles per charge, charge in 10 minutes at the station or 2 hours at home. That would make the hydrogen technology... obsolete.

"The 35 KWh NanoSafe pack can be recharged in less than 10 minutes, with the appropriate battery charger and provides sufficient power and energy for a fleet vehicle to travel up to 130 miles. The 70 KWh NanoSafe pack can also be recharged in less than 10 minutes, with the appropriate battery charger and provides sufficient power and energy for a full sized SUV to travel up to 250 miles."

Unless the fuel cells technology achieves the neo-alchemic dream of transforming water directly into energy and a consumer can put water in the tank which would be processed in hydrogen and then in energy, an electric battery charged with 3 dollars (!) will be absolutely better.

Les jeux sont faits. So, let's wait for a supplier chosen by a major player and see the big contract coming...

Disclaimer: in my portfolio, I own shares of Altair.