Although still in its infancy, the electric car market is gaining momentum. Approximately 40,000 electric vehicles were sold in 2011, more than any year prior. General Motors sold more Chevrolet Volts in the first half of 2012 than it did for the whole of 2011, and the all-electric Tesla Model S sedan had a waiting list of 10,000 when it debuted in June. According to IDTechEX, a technology-focused research and consulting organization, “Any motor manufacturer without a compelling line up of electric vehicles is signing its death warrant.”
One way to play this trend is to invest in companies that produce components for electric vehicles. The International Energy Agency forecasts that electric vehicle (EV) technology will account for nearly 30% of all vehicles by 2050. Leo Motors, Inc. (OTCQB: LEOM), based in South Korea, provides investors with a great early-stage opportunity in this space. The Company’s products have the potential to make electric vehicles safer, more powerful and more affordable.
LEOM’s power train fusion technology, consisting of a motor, controller and battery power pack, can be driven on steep hills and at high speeds. The technology exceeds the performance of internal combustion engine vehicles and achieves superior performance, safety, and torque when compared with competing technologies.
Two well-known sports car manufacturers have recognized the strength of LEOM’s power train technology. In February, the Company signed an agreement with Mastretta to develop an electric version of the Mastretta MXT that uses LEOM’s power train and battery management system. LEOM is also working with Bolwell Car Company of Australia to develop an electric version of the Nagari sports car. The car will have a range of 250 miles and a maximum speed of 160 miles per hour.
Another LEOM product, the Zinc Air Fuel Cell (ZAFC), overcomes one of the primary obstacles to consumer adoption of electric vehicles: range anxiety, or the fear of running out of electricity before reaching a charging station. The ZAFC enables motorists to drive longer distances, emits no pollutants, and carries no risk of explosion or fire. SBI Energy expects the fuel cell market to grow from $598 million in 2010 to $1.2 billion by 2014. Pike Research estimates that fuel cells for use in vehicles will begin rapid commercialization by mid-decade. An overview of fuel cell vehicles is available on the U.S. Department of Energy’s website.
LEOM has also developed a power storage device, e-Box, which supplies electricity in emergency and field situations. The device is 10 times smaller and has an average life 10 times greater than other batteries with similar capacities. The e-Box has a wide range of potential applications, including utilities, transportation, military and telecommunications. The Company recently signed a $25 million e-Box distribution agreement with one of Korea’s top business conglomerates, as well as a $100 million contract to provide 20,000 e-Boxes for a major housing project in Africa.
LEOM is just starting to market its technology to major manufacturers. With a potentially game-changing portfolio, the Company is positioned for exponential growth in the burgeoning EV market. To learn more about the Company, visit LEOM’s client page at RedChip.com. You can also sign up for our weekly newsletter, The RedChip Money Report, to stay updated on the latest developments at LEOM and other small-cap companies.
Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.
