Necessity is the Mother of Invention
This is a well-known proverb, meaning that one of the primary driving forces behind most new inventions is need.
Today, much of the world is focused on efforts to combat climate change, largely by reducing dependence on fossil fuels, increasing the use of reusable energy sources, and converting motor vehicles from internal combustion engines (ICE) to electric vehicles (EVs).
Based on current levels of development, much of this effort will require some significant innovations in battery technology, both for storage and for EVs.
Currently, batteries are too expensive, are dependent on a very dirty supply chain, require environmentally questionable manufacturing processes and suffer from range and charging issues.
All of this suggests that there are real opportunities and significant risks for investors interested in participating in the long-term potential for batteries. As things stand now, considerable innovation will be required for batteries to become an effective and economic part of the solution to the environmental issues precipitated by continued reliance on fossil fuels.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA