Batteries: Reasoning Behind Resin

The last post “Rivian Out of Reach” published on July 17, 2020, profiled one of the many developers in the race to introduce the first all-electric pickup truck.  Already a number of potential buyers have reported put down deposits to buy the designs and commercial buyers are keen to adopt all-electric trucks for fleet vehicles.  Widespread use of all-electric vehicles for commercial purposes means even more batteries than ever will be needed to keep the U.S. moving.  By extension greater efficiencies are needed in not only battery designs, but battery production as well.

Tokyo-based APB Corporation develops and manufactures lithium-ion batteries called the All Polymer Battery.  All of the battery components are made with polymer materials in an effort to shorten the amount of time needed to manufacture each battery.   The metal-lined electrodes and liquid electrolytes are replaced with a resin construction.  For example, electrodes are formed by applying a resin coating to the active material.  It is a dramatic departure from the manufacturing process used for conventional lithium ion batteries that is more like semiconductor production that requires clean room conditions.  Called a ‘bipolar structure all-polymer battery,’ the technology is licensed from Nissan Corporation, where APB’s founder and current chief executive officer began a career in battery development.

Unlike conventional lithium-ion batteries where the current flows parallel to the electrodes, ABP’s polymer battery is configured so that the electric current flows perpendicular to the electrode plane.  Perhaps more importantly, the battery cells can be connected sheet by sheet in a series, reducing the number of parts in the design.  This simplifies production and reduces manufacturing cost.  It also makes it possible to create thicker electrodes and larger cells that increase battery capacity. 

APB’s battery still has some doubters.  Polymers are not as conductive as metal so APB’s battery could have limited carrying capacity.  In the bipolar design the cells are connected back-to-back in a series so individual cells are difficult to control. 

In June 2020, Toyota Tsusho Corporation (8015:  Tokyo), a general trading company in the Toyota Group, has invested in APB Corp.  Neither party disclosed the amount of the investment.  Reportedly the new capital will be used to build a large-scale production plant for the All Polymer Battery.  Toyota Tsusho has also promised to leverage its sales network to aid APB in marketing the new battery.    APB had previously raised capital from Obayashi Corporation, a general contractor; Yokogawa Electric Corp., an industrial equipment manufacturer; and Teijin Ltd., a carbon fiber manufacturer.  One of APB’s early investors, Sanyo Chemical Industries Ltd., remains a strong supporter.   

Reportedly APB has lined up its first customer from among Japan’s large industrial complex.  No name has been revealed.  Reportedly the company expects to be in production yet in 2020.

Minority investors will need to be patient to get a stake in the new lithium-ion battery technology.  The company apparently has no plans to issue publicly traded stock anytime in the near future.  So far it seems the company has had little difficulty in raising capital from large institutions and strategic investors, giving management plenty of breathing room.  Nonetheless, it is worthwhile keeping track of what the APB Corporation is doing as it may have a deep impact on its competitors in the lithium-ion battery market such as LG Chem, Panasonic and BYD. 

 

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.