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I've recently uncovered what could be one of the most
exciting profit opportunities for the next chapter in
American industry.
This technology can improve fuel economy by up to +1,735%.
This will not only save you a fortune at the gas pump, but
it could also spell tremendous gains for early investors.
The technology I'm talking about?
Advanced lithium-ion batteries.
These aren't the kind you can pick up at AutoZone (NYSE: AZO), they're
special rechargeable energy sources that can power the next
generation of plug-in electric vehicles. Advanced electric
cars using these batteries weigh as little as 894 pounds and
emit only tiny amounts of carbon -- if they produce any CO2
at all. And they're extremely efficient, delivering up to
367 miles per gallon.
In the past, the biggest hurdle preventing the electric car
from going mainstream was the technology, which wasn't
robust enough to deliver sufficient power to accommodate the
way Americans drive. The other major hurdle was the
exorbitant cost of the battery.
All of that has changed.
Today, advanced lithium-ion batteries are getting more range
for less money. Drivers can go 40 to 100 miles before
needing a recharge -- far more than the typical distance
driven by a daily commuter. And thanks to recent
improvements in battery power, the lithium-ion battery
market is poised to explode in size. From just $32 million
per year in total revenues today, insiders expect the
industry to skyrocket to more than $20 billion by 2015, and
nearly $75 billion by 2020.
Legislators in Washington aren't just hoping this type of
growth takes place. They're putting the full force of the
federal government behind this high-tech power source.
Obama's Support for Plug-in Cars
Detroit has long had good representation in Congress. And
historically, the Big Three automakers have gotten what they
wanted under the notion that "what's good for General Motors
is good for the country." But the electric car industry has
something far more compelling than a slick lobbyist.
It has the leader of the free world on its side.
There's no better public relations machine out there than
the White House. Between the hundreds of journalists who
cover Mr. Obama and the global reach of the President's
"bully pulpit," the administration is very effective at
getting its message out.
And Uncle Sam's checkbook doesn't exactly hurt anything
either.
The U.S. government, as part of the president's plan to
jumpstart a new "green-collar" economy, has already awarded
$2.4 billion to battery makers to help them produce even
better automotive batteries. The president wants more
efficient batteries, and he wants lots of them. Mr. Obama
wants a million plug-in vehicles on U.S. roads by 2015 -- an
ambitious goal given that the cars aren't even for sale yet
in the United States.
Given the White House's marketing efforts and the Treasury's
financial support, it's not surprising that not only is
domestic demand for these vehicles on the rise, but
international support for plug-ins is mounting as well.
International Support for Plug-in Cars
The biggest car show in Europe kicked off last week in
Frankfurt. The lineup showcased several European models with
stunning fuel efficiencies and low carbon emissions.
You've heard of the Chevy Volt -- which Mr. Obama can't seem
to say enough good things about -- and you might have even
heard about the Nissan Leaf, which has even greater fuel
economy. Here are two more of the most anticipated models...
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Automobile |
MPG |
Powered By: |
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Volkswagen L1 |
170 |
Lithium-ion batteries and
ultra-efficient diesel |
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Peugeot iOn |
All electric |
Lithium-ion batteries |
So we have Chevrolet, the very icon of the U.S. auto
industry, as well as Nissan, one of Japan's major
automakers, plus France's Peugeot and Germany's Volkswagen.
If this doesn't point to a major global shift in automobile
design, I don't know what could. Clearly, such strong
international support will help propel these vehicles into
the mainstream.
The Inevitable Future of Automobiles: Plug-in Electric
Vehicles
Let's step back for a second and take a broad view of Mr.
Obama's "green" economy paradigm. Even if the country was to
find a way to produce all of its domestic electric needs
from renewable sources like wind and solar power, we'd still
be driving cars that use a mind-boggling amount of gasoline.
We'd still be dependent on 20 million barrels of foreign oil
every day.
And we'd still emit lethal amounts of carbon dioxide
into the atmosphere.
So if our country is going to be serious about its "green"
future, it's obvious that we have to talk about the domestic
auto fleet. One way or another, we're going to need cars
that don't rely solely on gasoline. And that's where plug-in
electric vehicles come in.
Advanced hybrid models combine electric power and
ultra-efficient fuel that let you commute for months without
refueling. With all-electric models, you won't ever have to
buy fuel again.
Nissan says its Leaf model will hit select U.S. and Japanese
markets in 2010. The Leaf -- which doesn't use any fuel and
has zero emissions -- performs like a V6, holds five
passengers, and gets the equivalent of 367 miles per gallon.
The funny thing is, that 367 mpg figure is conservative: The
Leaf is 100% electric, so it doesn't require any gas
whatsoever. (Since the Leaf doesn't use fuel, the "mpg"
calculation is based off of how many "kilowatt-hours per 100
miles" it uses.)
With that in mind, you're technically getting a vehicle with
unlimited miles per gallon. And as an investor, you can get
in on the action by investing in shares of Nissan. This
Japanese car manufacturer trades right here at home on the
pink sheets under the ticker "NSANY.PK."
But the better way to profit from this emerging growth story
is to invest in the battery manufacturers themselves. I'll
bring you an in-depth look at this market in future issues
of the StreetAuthority Investor Update. In the meantime, see
my P.S. below for an immediate look at my favorite electric
car investment today.
Many Happy Returns,
-- Andy Obermueller
Chief Investment Strategist
Government-Driven Investing
P.S. All the pieces are falling into place for plug-in
electric vehicles. As demand for these cars explodes over
the next five years -- both domestically and abroad -- a
small group of companies will make out like bandits. In
fact, one company already is. It's my favorite "electric
car" play -- and it's already up +415% this year and headed
higher.
Click here for my briefing on this opportunity -- and to see
how you can start profiting too.
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