[Request] AMTE Power IPO £AMTE

AMTE has announced its intention to float on AIM this month.
I imagine it will be gaining interest as the year progresses (renewables/auto) so it would be great to have it available on Freetrade.

Update: Trading as of 12/03/21

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Heavily oversubscribed - good info here #AMTE Power: An IPO That Brings The Lithium Battery Gold Rush To #AIM – Zak Mir

We need this new IPO onboarded!

@Viktor @sampoullain

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Thought I’d take a look at compare to the two other UK battery makers.

Invinity Energy Systems is focused on Vanadium Flow batteries for energy storage applications. It has a pipeline as of this month of 144MWh and revenues of only £222,000 in 2019 and last reported net assets of £38.7m although it has since raised £20.5m. 2023 forecast revenues are £39.2m. They don’t seem to release their manufacturing capacity publicly but it seems to be around 10MWh at the moment rising to circa 20MWh next month with an option for an additional ~15MWh in China. Enterprise Value assuming debt has remained low is £100m. Aside from regular energy related projects it is working on tidal generation in the Orkney Islands.

Ilika is specialised in much more expensive solid state batteries for medical, electrical vehicle and other uses. It has a manufacturing capacity of around 52KWh rising to several MWh in 2022 and 260MWh of just its Goliath batteries by 2024. Last years Revenue was £2.8m although all but £367k was grants. 2023 forecast revenues are £13.5m. It has net assets of £15.6m and an Enterprise Value is £273m. It is involved in projects with Honda, Ricardo, McLaren and Jaguar Land Rover.

AMTE was a joint venture involving Mitsubishi Materials and GS Yuasa. It develops various different chemistries, such as sodium-ion, which has similar properties to Zinc hybrid batteries manufactured by Eos Energy with safety, cycling durability and cost as differentiators. As such it is planning to commercialise a sodium-ion pouch cell by next year designed primarily for energy storage. Its other products are either lithium-ion or lithium-ion derivatives. The actual material chemistry is exclusively licensed from QinetiQ and Faradion but the company is focused on cell innovation. The company is working with, among others: Williams Advanced Engineering, JLR and Ilika. It’s Scottish facility has a theoretical capacity of under 100MWh, and it also has plans for another factory in 2022 with a 2GWh capacity. Aside from this they have also signed a MoU to be a senior partner for Britishvolt’s 30-35GWh gigafactory in Northumberland which should be operational by 2023. The 15 months to June 2020 showed £802k in income and £462k in grants.
Enterprise value after IPO is circa £65m, with net assets of £17.2m. The company also owns 19.5% of MEP Technologies Ltd, a manufacturer of battery packs and modules. In my view this company is undervalued as it has similar revenue profiles, blue chip partners and likelihood of double digit million revenues within 36 months to the others, yet is priced at significant discount.

image Increasing geographical diversification

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Would be good to get this on Freetrade

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Clock is ticking on this one! Already feel the market cap is getting very high for a R&D company without any major manufacturing experience. Lots of risk long-term for companies like this in my view (who will probably get squashed by the global players) but worth a look as a short term trade or a bit of a punt.

They already have over 2 decades of experience in making batteries?

Yes but in tiny quantities for niche applications. Revenues about £1million a year aren’t they? I’m sure they have a role to play but a market cap above £100 million would require rapid growth and scale up plans to be justified imo. A 2GWh plant is not that. I also expect this industry will see brutal competition on prices and supply chains similar to when solar was scaling up and will be hard to pick the winners. Just my view though and I don’t claim much knowledge of the company.

Britishvolt looking to de-SPAC. Noteworthy given some of that money will wind its way up to AMTE.