Energy Storage Stocks Backed by Billionaires

These Guys Make the Sun Shine at Night

Written by Brian Hicks
Posted May 6, 2010

There's really only one reason why you don't have solar on your roof or why your house isn't powered by wind...

Batteries. Or, more precisely, the lack of advanced batteries.

I've been screaming about batteries for quite some time now.

And those who listened early have banked gains upwards of 675%.

That's not hyperbole. That's reality.

Here's why battery stocks are surging that high and why there's still plenty of time to make easy gains.


It's the Capacity, Stupid

Frankly, I'm surprised the solar and wind industries haven't died already. The economics of energy are brutal. And a technology needs to have the most uptime possible to be able to compete.

This is why coal, natural gas, and nuclear are so attractive...

You can run them nearly all the time.

This is not the case with wind and solar. You can't make electricity when the wind doesn't blow; same when the sun doesn't shine.

New energy storage solutions are going to change that. And the companies making them are going to make billions.

But hardly anyone realizes it...

Twice the Power, Twice the Profits

Sources of power can only make money while they're generating.

As such, the economics favor coal, gas, and nuclear plants, which have the most uptime.

But what if you make solar and wind plants churn out electricity nearly 24 hours per day?

Having solar power at night and wind power when it's not blowing would drastically change the economics. Solar and wind farms would have twice the generation capacity — and generate twice the revenue.

And utilities would be much more apt to adopt these sources, since energy storage puts them on par with fossil-fired plants.

What's more, utilities would then even start to favor solar and wind, since they don't have any fuel imports or costs after initial construction.

The profit opportunity here should slap you in the face.

Wind and solar stocks have already delivered thousands of percentage points to early investors. Energy storage stocks will do even better. And here's what no one realizes...

This Ain't Your Father's Duracell

Batteries no longer power only remote controls and other cheap electronics.

Thanks to rapid improvements, they're now doing the job the grid and small engines once did.

Cordless drills used to be plugged in; now they come with advanced lithium ion batteries. Computers used to stay plugged in constantly; now, batteries allow them to run for hours on just one charge. Batteries are replacing engines in lawnmowers and, increasingly, in automobiles.

Batteries should no longer conjure up images of AA and AAA cylinders.

And as this has happened, wealthy investors have jumped on the battery bandwagon.

French billionaire Vincent Bollore plunked down $1.5 billion so that his company, the Bollore Group, could build two facilities with a total production capacity of 30,000 solid-state batteries per year.

Hong Kong billionaire Li Ka-shing (valued at $16.2 billion) lent $292 million to Jia Sheng Holdings (HK: 0729) so they could acquire an advanced battery maker. Since that day — January 26 — the stock is up about 4,000%.

Jia Sheng

Even hall-of-fame investor Warren Buffett is playing the battery game. And the gains the company he's chosen to back could dwarf those of Jia Sheng.

You see, the firm Buffett took a stake in has already perfected two kinds of batteries: lithium-ion and iron phosphate. And they've already cornered the cell phone, power tool, and auto markets in China.

Now, hybrid and electric cars boasting their batteries are about to go on sale in the United States and Europe. The company even announced a new Las Angeles headquarters just this week.

The stock is up more than 550% in the past year, yet it still trades for less than $9.00 and has plenty of things going for it.

Most notably, that they're also entering the utility scale storage market — making the sun shine at night — and have lined up deals with some of the largest utilities in the country.

I'm convinced it's the only battery stock you need to own to walk away from this boom with easy profits. You can learn all about why Buffett bought this stock and how to own it for yourself in this new report.

Call it like you see it,

Nick Hodge