Friday, October 20, 2023
If anyone understands the benefits — and inherent obstacles — when it comes to lithium-ion batteries, it’s Mateo Jaramillo.
Jaramillo spent nearly six years at Tesla (TSLA) as Director of the electric-vehicle maker’s Powertrain Business Development division. And that powertrain, the system designed to propel a car forward, has helped make Tesla the most valuable car company in the world.
These days, Jaramillo runs his own startup, but continues to pioneer new battery-related technologies.
His latest creation? A novel approach to grid storage I call a “living battery.”
Not only could this battery transform the energy industry…
But it could also deliver its early investors a windfall of profits.
I’ll reveal the details behind this living battery a bit later. But first, let me tell you more about Jaramillo.
After running Tesla’s powertrain unit, Jaramillo became the company’s Vice President of Products and Programs, overseeing its stationary energy-storage program.
In this role, he was responsible for Tesla Energy’s product line, as well as global policy and business development…
And this is where he began to formulate an idea about replacing giant lithium-ion batteries…
You may not realize it, but chances are, you interact with a device powered by a lithium-ion battery every day.
Sure, they’re used to power electric vehicles, including Teslas. But they’re also used in numerous industrial applications, such as power tools, marine equipment, agricultural tools, next-generation aircraft, and everyday electronics.
These batteries use the reversible reduction of lithium ions — hence their name — to store energy. And because they can be charged and re-charged thousands of times, they’ve become the go-to resource for powering our tech-driven world.
But for all their capabilities, lithium-ion batteries aren’t perfect. Importantly, these batteries can’t provide the type of industrial-energy storage we need to get to a carbon-neutral world.
At grid scale, lithium-ion storage can power millions of homes, which sounds great. The trouble is that this technology only provides power for a few hours, not weeks or even days on end.
These drawbacks captured the attention of Jaramillo, who looked to an alternative solution…
And found one based on an ancient material that first appeared more than 2,000 years ago…
That material is iron.
You see, with a new startup called Form Energy, Jaramillo began working on a novel approach to grid storage — a living battery.
This battery was based on just two ingredients:
2. The very air we breathe.
Both are abundant, cheap resources. And together, they create a battery that can last 16 times longer than a lithium-ion one, for a fraction of the cost.
Form Energy’s living battery uses one of the simplest, most recognizable chemical reactions…
One you’re likely familiar with: When iron is exposed to oxygen, it rusts.
In other words, this battery was designed to “breathe” air. In doing so, it breathes in, combining iron with oxygen to create an electrical current while turning the iron into rust. Then, when it recharges, it breathes out, turning the rust back into pure iron, releasing the oxygen back into the air.
Pretty cool, huh?
These living batteries are bigger and heavier than lithium-ion ones. So don’t expect to see them inside your next EV.
But for stationary grid energy storage, part of a sector Global Market Insights estimates will reach $1.7 trillion in the next ten years, this size isn’t a problem.
Furthermore, iron is dirt cheap when compared to lithium. And both iron and oxygen are extremely common.
This living battery is critical for utility and industrial-energy storage. And the profits it could deliver its early investors could be life-changing.
So, how can we invest?
At first blush, it seems we can’t invest in it.
You see, Form Energy is the company developing this living battery. But it’s a privately-held startup — meaning we can’t invest in it unless it decides to raise capital from investors like us.
No matter, though. I’ve discovered a backdoor way to invest in this technology…
To learn all about it — including my guidance about entry price, and my calculations about profit potential — simply join my premium research service, Digital Fortunes.
Cheers and Good Investing,
Chief Investment Officer
Trend Trader Daily