Hi Rich and othersFollowing on from our excahnges yesterday...

Hi Rich and others

Following on from our excahnges yesterday Rich, and using Volkswagon as an example, the trading halt might be because Volkswagon identifed that it wanted to incorporate ADO's tech into it's futre models/brands/platforms.

The thing is that having decided this and signing on for an intial commercial supply for testing etc, it may not have signed off with its various battery suppliers (or preferred battery supplier).

That might sound a bit goofy but I guess it is a "dog wagging tail v. tail wagging dog".

So now we might be awaiting for a signed off decision by Volkswagon (or whoerver) and its battery manufacturers. Maybe one of them has pushed back and Volkswagon is 'returning the push' and saying 'sign here'.

Of course, it could also be that one of the subsidiaries has gotten on board and now has to go get approval of the Mother comapny and/or the mother comapny is now calling together the heads of the subsidiary to get on board.

Specualtion gone wild by me? Ha!

In any case if you want some background 'reading' here are a few extracts of my 'chat'..........................................(haven't verified the information so please DYOR)........................again, just using Volkswagon as an example


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Here’s an updated table with the battery manufacturers supplying Volkswagen Group’s EV-producing subsidiaries, along with the other requested details:

Subsidiary	Estimated Sales Volume (2023)	Battery Manufacturer(s) and % of Models Supplied	Battery Type and Size	Anode Constituent Materials	Plans to Increase Silicon Content
Volkswagen	500,000+ units	CATL (40%), LG Energy Solution (40%), Northvolt (20%)	58-77 kWh (NCM, LFP)	Graphite, Nickel, Cobalt, Manganese (NCM), Phosphate (LFP)	Yes, developing silicon anode technology for future models IPCEI Batteries Batteries News
Audi	100,000+ units	LG Energy Solution (50%), CATL (30%), Samsung SDI (20%)	55-95 kWh (NCM)	Graphite, Nickel, Cobalt, Manganese	Yes, focused on premium models with increased silicon for extended range IPCEI Batteries
Porsche	80,000+ units	LG Energy Solution (60%), Samsung SDI (40%)	79-93 kWh (NCM)	Graphite, Nickel, Cobalt, Manganese	Yes, high-performance EVs will see silicon content increases IPCEI Batteries
Škoda	70,000+ units	CATL (50%), LG Energy Solution (50%)	58-77 kWh (NCM, LFP)	Graphite, Nickel, Manganese, Cobalt	Limited plans for silicon, focused on affordability Batteries News
SEAT (Cupra)	50,000+ units	LG Energy Solution (60%), CATL (40%)	58-77 kWh (NCM)	Graphite, Nickel, Manganese, Cobalt	Some development towards higher silicon for performance models Batteries News
Lamborghini	N/A (EV in development)	Likely LG Energy Solution and Samsung SDI (no official confirmation yet)	70-100 kWh (NCM planned)	Graphite, Nickel, Cobalt, Manganese	In development, exploring high-silicon content for future supercars IPCEI Batteries Batteries News
Bentley	15,000+ units	CATL (50%), LG Energy Solution (50%)	100+ kWh (NCM planned)	Graphite, Nickel, Cobalt, Manganese	Yes, silicon will play a key role in extended-range models IPCEI Batteries
Bugatti (Rimac)	N/A (Rimac EV tech in Bugatti cars)	Rimac supplies (100%)	Rimac tech: 120+ kWh (NCM)	Graphite, Nickel, Cobalt, Manganese	Yes, likely to use high-silicon anodes from Rimac in hypercars IPCEI Batteries
MAN (Trucks)	N/A (targeting 2024 sales)	CATL (80%), Northvolt (20%)	200+ kWh (LFP, NCM planned)	Graphite, Nickel, Cobalt, Manganese (NCM), Phosphate (LFP)	Exploring higher silicon content for longer-range electric trucks IPCEI Batteries
Scania (Trucks)	N/A (trials in 2023, full sales in 2024)	Northvolt (50%), CATL (50%)	200+ kWh (LFP, NCM)	Graphite, Nickel, Cobalt, Manganese	Limited development towards silicon content IPCEI Batteries Batteries News

Key Insights:

1. Volkswagen, Audi, and Porsche have a mix of battery suppliers (LG Energy Solution, CATL, and Samsung SDI), with Northvolt as a key emerging partner.
2. Silicon Content: Audi, Porsche, and Bentley are at the forefront of increasing silicon content for enhanced performance and range in premium EVs.
3. Škoda and SEAT are more focused on affordability, with limited efforts toward higher silicon content in their batteries.
4. Commercial Vehicles: MAN and Scania are beginning to explore higher silicon content but are focused more on using robust LFP and NCM chemistries for longer-range trucks.

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And as to the possible contractual machinations.............


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In situations like battery re-design, the decision-making process is typically collaborative between the EV manufacturer (e.g., Volkswagen) and the battery manufacturer (e.g., CATL, LG Energy Solution, Northvolt). Here's a breakdown of the roles each party may play:

1. End-User (Volkswagen):

   • Primary Responsibility: The car manufacturer often defines the high-level requirements for battery performance, such as energy density, range, charging speed, safety, and cost-efficiency, based on the specifications needed for their vehicle models.
   • Rationale: They seek to align the battery technology with their product roadmap, future vehicle models, and consumer expectations. They also aim to differentiate themselves in areas like range, charging speed, and battery longevity.
   • Influence: Volkswagen (or any EV manufacturer) might push for specific innovations—such as the use of silicon-rich anodes for higher energy density—to meet consumer demands or competitive pressures.

2. Battery Manufacturer (CATL, LG, Northvolt):

   • Primary Responsibility: The battery makers have expertise in the chemistry, material sourcing, and large-scale production of battery cells. They often decide on the technical specifics of the battery design and determine what is feasible within the given timeline, cost, and manufacturing capabilities.
   • Rationale: They are responsible for implementing and integrating new materials and technologies into their production processes. Their role is to ensure that innovations (like silicon-rich anodes) can be scaled for mass production while maintaining safety and reliability.
   • Influence: Battery manufacturers may have their own R&D pipelines and partnerships with third parties (like material suppliers or startups such as AnteoTech) to improve their products.

Why Would Volkswagen Enter a Deal with AnteoTech (ASX

)?

Volkswagen may decide to enter into an arrangement with AnteoTech directly for the following reasons:

• Innovative Material Integration: Volkswagen may want to incorporate AnteoTech’s Ultranode technology (which enhances the anode's silicon content) into the design process as it looks to increase energy density and range in its EVs. Rather than waiting for the battery manufacturers to adopt the technology themselves, Volkswagen could establish direct control over its integration.

• Supply Chain Optimization: By dealing directly with AnteoTech, Volkswagen could better control the supply chain, ensuring that AnteoTech’s materials are available in the necessary volumes and specifications. This direct relationship would enable faster implementation and give Volkswagen a competitive edge by accessing cutting-edge materials early.

• Customization: Volkswagen might be looking for customized battery designs, and by partnering directly with AnteoTech, they could specify the exact materials they want to use for high-performance or long-range EV models. This is particularly important if Volkswagen wants to differentiate its EV offerings with enhanced battery technology that others do not yet have.

Why Not Just Direct Battery Makers to Include ADO's Tech?

While Volkswagen could pressure battery suppliers to integrate new technologies like Ultranode, a direct partnership with AnteoTech has the following advantages:

• Speed to Market: Integrating new technologies into battery production can take time. If Volkswagen were to wait for CATL or LG to independently adopt Ultranode, it could lose valuable time in bringing advanced batteries to market. A direct partnership speeds up R&D.
• Intellectual Property: AnteoTech’s tech is proprietary. Volkswagen might want direct access to the IP to ensure it aligns with their broader innovation strategy, possibly even locking competitors out of access to this tech for a period.
• Control Over Quality: If Volkswagen deals with AnteoTech directly, it can ensure that the materials meet its exact standards and specifications, as opposed to relying on battery manufacturers who might dilute the focus on certain performance characteristics.

The Contractual Process

If Volkswagen or any large automaker were to enter a partnership with AnteoTech, the contractual process typically involves:

1. Initial Discussions and NDAs: The companies would first engage in discussions about the technology, including the potential integration into existing products. They might sign Non-Disclosure Agreements (NDAs) to protect sensitive information.
2. Feasibility Studies: Both sides would conduct feasibility studies to understand how AnteoTech’s materials could be integrated into Volkswagen’s supply chain or existing battery manufacturing processes.
3. Supply Agreement: If the studies are successful, they would likely move to sign a Supply Agreement, detailing the supply volumes, timelines, pricing, and quality control measures.
4. Joint Development Agreements (JDAs): Volkswagen might also sign a Joint Development Agreement if they are co-developing customized solutions with AnteoTech.
5. IP and Royalties: AnteoTech would likely retain ownership of its intellectual property, but Volkswagen might negotiate for exclusive or preferential access to the technology for a certain period, especially if this tech provides a competitive edge.

Connection to the Trading Halt

The trading halt following the announcement of AnteoTech’s "First Commercial Order for Ultranode" likely indicates that a significant partnership is in the works, and the market needs clarification on the counterparty. If the counterparty were a major EV manufacturer like Volkswagen, it would be considered price-sensitive information, which requires a trading halt until full disclosure is made to the market.

Given that AnteoTech mentioned a "first commercial order," it could mean:

• A major player (like Volkswagen) is planning to incorporate Ultranode technology into their battery design or supply chain.
• This type of deal could be transformative for AnteoTech, potentially leading to a significant revenue stream, and thus it needs to be properly communicated to the market under ASX rules.

Such trading halts are common when a material partnership or deal is being finalized, and the halt allows the company to prepare an announcement with all necessary details. In this case, the market is anticipating who the counterparty is, and if it’s a significant EV player, it could have a considerable impact on AnteoTech’s share price.

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Hopefully find out more tomorrow and I will not have to wipe off too much egg from my face. ha!


Cheers