Is This Another Chinese EV Play That’s Going to Be Profitable for Investors?

Published on: December 29, 2021
Author: Amy Liu

Warren Buffett Tops 3,000% Gains in Electric Car Stock Without Holding Rivian Or Tesla

Warren Buffet – aka the Oracle of Omaha – isn’t known for buying into media hype or temporary fads, so people pay attention when he’s invested in the Chinese EV BYD.

A decade ago, he poured millions into Chinese EV maker BYD and that bet continues to perform exceptionally well as the EV sales soar to record levels.

Back in 2008, Berkshire Hathaway bought 225 million shares of Chinese EV maker BYD for US$32 million. In its 2020 annual letter shareholder letter, Berkshire listed that initial investment at a staggering US$5.9 billion.

Given that 2021 has seen share prices of the Chinese EV maker climb as much as 25%, that BYD investment could be worth US$7.38 billion today, assuming Buffet hasn’t added to his position or sold any shares.

US EV Stocks Tumble After “Build Back Better” Plan’s Failure

But it’s not all smooth sailing for EV makers.

Last week right-leaning Democratic senator Joe Manchin effectively shut down President Joe Biden’s staple “Build Back Better” plan causing shares of EV companies to tumble.

Key features of the US$1.75 billion plan were incentives to help push the mass adoption of EVs in the US. With the plan now in limbo, EV start-ups like Lordstown Motors, Faraday Future, and Nikola feel as much as 10% Monday. Rivian Automotive, which recently went public in a blockbuster IPO, saw shares plunge more than 17% to a record low of $88.40. Shares have since recuperated some losses but are still trading well below previous highs.

Even established automakers like Tesla and General Motors were not spared from price volatility, with shares of both companies losing ground Monday before recovering in later trading sessions.

Even though a massive bipartisan infrastructure package including billions in spending for EV chargers has already been approved, it appears that Wall Street had its hope tied to the Build Back Better EV purchase incentives, which would have totaled up to $12,500 per vehicle. However, without full democratic support, the bill is unlikely to pass in a 50-50 Senate.

Another Chinese EV Play with Massive Potential for Investors

Investors love EV stocks because many of them deliver oversized returns. And one particular EV company might be at the right “buy low sell high” stage: EV Battery Tech.

Extreme Vehicle Battery Technologies Corp. (CSE: ACDC) is a pioneering blockchain and battery technology company developing revolutionary solutions for both the EV and ESS markets. Its staple piece of technology is a patented Battery Management System (BMS) which enables optimized performance, remote monitoring and maintenance capabilities, and enhanced battery lifespan thanks in part to AI (artificial intelligence) algorithms designed to address the shortcomings of current battery technology.

Another distinguishing feature of EV Battery Tech’s model is its focus on creating environmentally sustainable solutions. AI-based battery technology may one day allow the company to fully refurbish, reuse, or recycle used batteries, making it one of the greenest battery technology companies in the industry.

Daymak Spiritus EV Unveiled

This week, EV Battery Tech partner Daymak unveiled its much-anticipated Spiritus EV in an online viewing event. The Spiritus is the first of the six-vehicle Avvenire lineup, all of which will feature EV Battery Tech’s IONiX Pro battery.

The two companies rounded up the week with a series of other major announcements, including Daymak’s purchases of 1000 IONiX Pro SmartWalls and an agreement that will see the companies partner on the sales, distribution, and service of the IONiX Pro SmartWalls.

EV Battery Tech Partners with Chinese Battery Makers

But making EVs isn’t all EV Battery Tech has been up to.

On October 30, 2020, the company signed a strategic marketing and development agreement with Jiangsu RichPower New Energy Co. Ltd. and Intelligent Battery Technologies. It closed the acquisition contemplated in its distribution and technology license deal with Rich Power and IBT.

RichPower is one of China’s leaders in researching, developing, and producing Battery Management and Energy Storage Systems. State-of-the-art facilities located in Shanghai and Suzhou are host to some of the world’s top research experts and manufacturing equipment. In addition to engaging in innovative R&D, RichPower provides products and related services to EV makers, power grid system companies, remote mine energy and commercial building power applications markets.

Under the agreement, EV Battery Tech has obtained to rights to market and sell products using RichPower’s technology for target markets with features including but not limited to:

  • Artificial Intelligence
  • Real-time Monitoring
  • Remote Maintenance
  • Longer Battery Life
  • More Efficient Power Supply
  • Smart Charging Systems
  • Battery Recycling
  • Blockchain Infrastructure

EV Battery Tech Adds Strategic Members to Advisory Board

In February 2021, EV Battery Tech announced four new members joining its advisory board. The strategic additions include Daymak CEO Aldo Baiocchi, RichPower CEO Jack (Jingke) Han, and serial entrepreneurs Dr. Eric (XingHua) Pu and RichPower principal and Vice President Tina (Weiping) Zhang.

Disclaimer: The company described in this article is a customer of NAI Interactive Ltd. This material is for informational purposes only and is not intended as a recommendation or offer or solicitation for the purchase or sale of any securities or financial instruments, or for transactions involving any financial instrument or trading strategy.

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