NEXT LEVEL UNDERSTANDING OF THE NEWS RELEASEFar too often, people only read a news release at face value, when the REAL value is hidden below the surface level reading. Today's news release is an excellent example of this. Take this statement first:
Nano One Materials Corp. has achieved an important milestone by successfully completing the evaluation and benchmarking of its process, cathode materials and techno-economic modelling, under a cathode evaluation agreement with a global automotive manufacturer.
Now, on the surface, the news reads as one automotive manufacturer approves of Nano and plans to use them. Sure, that's stunningly good news in and of itself. But below the surface:
1) This evaluation confirms that Nano's technology is fully viable. It's one thing for Nano to toot their own horn. But it is quite another thing for a global automotive manufacturer to say the same. This news is a MAJOR endorsement of Nano's technology.
2) There are currently 8 manufacterers poking around Nano. Now, the key here is that they essentially are all after the same thing. Cheaper, quicker, cleaner, and longer lasting, all of which Nano is offering. While this news today is the first manufacturer to endorse Nano, the others can't be far behind, as their criteria will essentially be the same. From this, it's not hard to extrapolate that other manufacturers will be coming on board as well in the near future.
3) This news also serves as a big "head's up" to the other manufacturers that this one contained in the news release is now "ahead of the game". This will put added emphasis and pressure on other manufacturers to catch up to this leader. Again, I think we'll be seeing a flurry of news releases going forward as the competitive factor kicks in.
4) And speaking of the competitive factor, no other OEM wants to be behind the others, as Nano's technology has the FULL potential to radically decrease battery costs. This of course will make a big difference in the competitive pricing that each OEM can ultimately offer. Again, none will want to be late to this revolution.
5) But this news today will go beyond just the OEM's. Remember too that Nano is going to also be a licencing play, and today's news will bring a lot of attention to those that are looking to get in on the licensing component. Personally, I think this is a little behind the OEM's, but will ultimately ramp up quickly as well, as the demand will be there. Nano's technology is, at the end of the day, a disruptor, with current processing facilities quickly becoming aware that they will be non-competitive unless they adopt.
So what is today's news release then? Far more than just an endorsement of one OEM (which again, is great), it signals the starting gun and the real race is now on. The competitive landscape is going to change very quickly from here, and Nano is EXTREMELY well positioned to take full advantage of this.
Today's gain? Sure, it's nice. But compared to gains in the future now that the race is started? Today's gain is just the smallest glimpse of what's to come.
Enjoy.