Balqon Corporation (OTC-BB: BLQN), a developer and manufacturer of zero-emissions heavy-duty electric vehicles and lithium battery systems, similar to companies like A123 Sysetms, inc. (Nasdaq: AONE) and UQM Technologies, Inc. (Amex: UQM), is seeing heightened interest after addressing a more diversified clean technology marketplace with its move into the lithium battery storage market.
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Balqon Corporation (OTC-BB: BLQN) designs, assembles and markets the first and only field-tested, battery-powered, zero-emissions, heavy-duty electric vehicles for use in Class 7 and Class 8 applications, used to transport containers and heavy loads. The company also provides complete drive systems and battery systems to OEMs of electric buses and trucks for both on-highway and off-highway markets worldwide.
Balqon Enters into the Lithium Battery Market
Recently, Balqon entered into the lithium battery systems market through an agreement to exclusively distribute lithium iron phosphate batteries and high voltage charging systems manufactured by Winston Battery Limited. The innovative company is led by battery technology scientist, inventor and entrepreneur Mr. Winston Chung, and remains on the cutting-edge of battery research.
Lithium iron phosphate (or LFP) batteries are lithium-ion batteries that use LiFePO4 as a cathode material, which offers superior thermal and chemical stability. As a result, these batteries are safer than lithium-ion batteries with other cathode materials. Meanwhile, the unique chemistry also enables longer cycle life, higher energy density and several other key advantages.
Investors Buy into Balqon’s Expansion
In December 2010, Balqon completed a $5 million private placement of its common stock and warrants, shortly after it entered into the lithium iron phosphate distribution agreement. With its unique presence in the commercial EV sector, many investors are betting that the move into batteries will help drive incremental revenues at favorable profit margin, and ultimately enhance its bottom line. Meanwhile, the firm will use the new funding to expand its sales force and increase market share.
Looking ahead, investors also see a number of favorable developments occurring within the sector that could help further drive adoption of EVs. For instance, the EPA and DOT jointly announced the first-ever emissions rules to be applied to heavy-duty trucks, which will seek to boost the minimum fuel economy by between 7% and 20% by 2014. Meanwhile, there are many existing tax and rebate incentives on both state and federal levels that should help drive long-term adoption.
Balqon is Well-Positioned to Capitalize on the Trend
Balqon is an innovator and integrator of electric vehicle technologies, including controllers, battery management systems, and related components across product platforms ranging from heavy-duty trucks and buses to industrial equipment. Its recent move into the battery storage industry has sparked investor interest in its stock that has resulted in the funding needed to expand its market share. Given these and numerous other catalysts, investors may want to look into this unique company positioned to profit.
