why ADO is a multi multi bagger, page-3810

Enovix has essentially the same potential market opportunities as Anteotech, but a different method to achieve their results. Lots of speculation they are working with several major phone companies on next generation of phone batteries.

Enovix does have some small sales already and currently making around US$20m revenue a year but losses are well over US$150m the past year.

Yet Enovix is valued by the market at around AU$3.9billion whereas Anteotech is barely holding a valuation of AU$50million…lots of potential upside in Anteotech, if as they believe themselves to be, are indeed the silicon anode experts…if Anteo can sell the 20,000L of AnteoX that is currently able to be produced in Brisbane facility at the stated $400L. This would service roughly 20,000 mid size Electric vehicles so essentially a single model of vehicle something like the new silicon anode CLA model being tested by Mercedes would fit the bill, it appears to be coming in two options one with a silicon anode and one without. The last sales data for the previous CLA appears to sell roughly 60,000 units globally. Add in some life science revenue from Serum Institute for vaccines and a few Indian rapid test suppliers and they will be well on the way to meeting the current revenue Enovix is producing. The cost to produce this revenue won’t change much from what Anteotech are already spending at around $10m P.A. as the infrastructure is already in place so it’s mainly just labour and materials increasing, so would make them close to if not cash flow positive.

Scaling up Anteotech costs shouldn’t increase as dramatically as Enovix as they are essentially a technology supplier not a complete battery supplier so overheads are not going to get out of hand and the only reason to scale up will be when/if demand necessitates the need.

Many of the early stage battery companies I have followed really struggle between the R&D to commercialisation phase due to trying to build a complete battery system the costs and time required to undertake building this out becomes crippling and majority have not survived the transition period.

This is why I still remain hopeful for Anteotech as presently the model is to remain a component supplier or licence the complete Ultranode technology keeping CAPEX low but potential profits high. They have already stated a scale up to 80,000L of AnteoX is possible in the existing Brisbane warehouse footprint and at relatively low cost. Anteobind for life science market is already able to be produced at scale required to serve current life science Indian initiatives.

The company has also finally received some local government support from Qld gov and ARENA to pursue their battery progress. Don’t discount the possibility of replicating this to scale out in the EU and US in the future if the need presents itself, still plenty of funding available overseas. With silicon being easily available across the planet a hard push by governments to shift away from the mostly Chinese controlled graphite supply chain is a real possibility.

Enovix like a few other silicon anode players have captured the early stage investment market that sees very large scale future growth potential for silicon anode batteries, Anteotech has not managed to do this at all…yet..

Water tends to find its own level so as long as the Anteotech scientific teams continue to progress the cycle life and density which so far they have done amazingly well, and the new sales director can work his magic in connecting and closing existing and new relationships, then a market cap similar to Enovix is not out of the question for Anteotech in the near term. If the battery tech is adopted by a major battery end user such as Mercedes it should have a good 5-10 year run across the range of products, much like the life science side with Serum Institute once it is adopted into a process and gone through approvals it will remain in the process until that vaccine is superseded or made redundant.

Silicon anodes are finally getting plenty of attention and from what many of us and those in the company believe Anteotech have the market leading products and technology to capture this market in a massive way.

GLTA