Romeo Power (RMO)

[WiseYoda]

LOS ANGELES & LOVELAND, Colo. (BUSINESS WIRE) Romeo Power, Inc. (“Romeo Power”) (NYSE: RMO), an energy technology leader delivering advanced electrification solutions for complex commercial vehicle applications, and Dynexus Technology, a leader in battery sensing solutions and data-driven battery intelligence, today announced a collaboration to integrate Dynexus Technology’s actionable battery performance and health sensors into Romeo Power’s battery ecosystem.

The technology developed by Dynexus will initially be utilized for incoming cell quality control and end-of-line verification, as well as module and pack diagnostics and prognostics, enabling multiple opportunities to reduce total cost of ownership for Romeo Power’s customers.

“As part of our holistic approach, we’re committed to being first movers in progressing battery safety and performance technology and features,” said AK Srouji, CTO of Romeo Power. “Dynexus generates critical data that can accelerate the qualification process of cells and batteries, including cell screening and matching, further improving quality control, safety and reliability of our battery systems. We look forward to collaborating with Dynexus to advance the electrification of commercial vehicles.”

Dynexus’s award winning and patented Inline Rapid Impedance Spectroscopy (iRIS®) sensors generate near real-time, rich, frequency-based battery data that provide information about the state of the battery physico-chemistry. Traditional measurement methods treat the battery as a blackbox. The Dynexus sensor “looks” inside the battery and generates a “fingerprint” or signature that uniquely describes a battery’s health, degradation, and therefore safety.

Romeo Power will integrate iRIS into its proven battery systems, providing a new class of battery data that, until now, was only available for research purposes and was not practical as a commercial sensor or tool. This cutting-edge technology enables measurements that typically take 30 minutes, to be reduced to 10 seconds or less. As a result, this game changing technology provides significant commercial application opportunities for Romeo Power’s advanced electrification solutions.

Dynexus Technology’s iRIS system has been validated in Romeo Power’s in-house testing lab and demonstrates superior accuracy and repeatability. The iRIS system also has high voltage capability and enables measurements under dynamic battery conditions. In addition to screening and quality control applications, Romeo Power intends to implement iRIS inside its next-generation battery systems and is expected to start road testing in 2022. This integration is also additive to Romeo Power's sustainability efforts as it may enhance reuse and battery second life assessment.

“We are excited to work with an energy technology leader like Romeo Power as we enable advanced diagnostics and prognostics for lithium-ion batteries,” said David Sorum, CEO of Dynexus Technology. “Integrating our in-line and on-board battery sensing solutions will not only reduce diagnostic times, but will also maximize performance, safety and the overall lifetime value for end users.”

About Romeo Power

Founded in 2016 and headquartered in Los Angeles, California, Romeo Power (NYSE: RMO) is an energy technology leader delivering advanced electrification solutions for complex commercial vehicle applications. The company’s suite of advanced hardware, combined with its innovative battery management system, delivers the safety, performance, reliability and configurability its customers need to succeed. Romeo Power's 113,000 square-foot manufacturing facility brings its flexible design and development process inhouse to pack the most energy dense modules on the market. To keep up with everything Romeo Power, please follow the company on social media @romeopowerinc or visit romeopower.com.

About Dynexus Technology

Founded in 2015 and headquartered in Loveland, Colorado, Dynexus Technology is a leader in data-driven battery intelligence sensors. With the goal of creating a safer and smarter electrified world, Dynexus Technology is on a mission to provide efficient and accurate in-line battery data for advanced diagnostic and prognostic solutions. Our vision is to optimize the value of electrified platforms, and ensure they perform safely and predictably throughout their lifecycles. For more information, please visit www.dynexustech.com.

https://www.businesswire.com/news/home/20210914005354/en/Romeo-Power-and-Dynexus-Technology-Collaborate-to-Introduce-Advanced-Battery-Sensing-and-Diagnostics-for-Battery-Electric-Commercial-Vehicles

[barnyarddog]

https://www.romeopower.com/

[WiseYoda]

Very interesting ticker. This space is hot right now. Outstanding is less then 132M shares? Do u know float? Any one following this have idea on short & long term price points?

[WeTheMarket]

Romeo Power Current Report filing (8-k) Entry into a Material Definitive Agreement

Effective August 10, 2021, Romeo Power, Inc. (the “Company”) entered into a Supplemental Agreement (the “Supplemental Agreement”) with LG Energy Solution, Ltd. (“LG Energy”), as a supplement to that certain Sales Contract, dated August 28, 2017, by and between the Company and LG Energy, as the successor-in-interest to LG Chem Ltd. (as amended from time to time, and as modified by the Supplemental Agreement, the “Supply Agreement”). The Supply Agreement provides for the manufacture and supply by LG Energy and the purchase by the Company of cylindrical lithium-ion battery cells (“Cells”). The Supplemental Agreement was approved by the Board of Directors of LG Energy and the Company, and became effective on August 10, 2021.
Under the Supply Agreement, LG Energy is committing to supply Cells to the Company through 2028, with a minimum commitment of 17,000,000 Cells for the remainder of 2021 through December 31, 2022, 37,000,0000 Cells in 2023, 87,000,000 Cells in each of 2024, 2025, 2026 and 2027, and 43,500,000 Cells through June 30, 2028. The Company is obligated to purchase such minimum volume amounts. LG Energy has further agreed to use its best efforts to allocate as many Cells as possible to the Company in 2021 and 2022 and to increase the quantity of Cells to be supplied to the Company in 2023 to 87,000,000.
To facilitate LG Energy’s supply of Cells pursuant to the Supply Agreement, the Company has agreed to pay LG Energy a deposit of $1.5 million (the “Deposit”), which will be applied as an advance for Cells purchased in 2021 and 2022, and a prepayment of approximately $64.7 million (the “Prepayment”), which will be used to build an additional assembly line at LG Energy’s manufacturing facility in Ochang, Korea. The Prepayment will be applied as an advance for the Cells to be purchased by the Company during the period from July 1, 2023, to June 30, 2028. Both the Deposit and Prepayment will be amortized ratably in the form of a credit against purchased cells. Pursuant to the terms of the Supply Agreement, the unit price of the Cells will be based on a raw materials index, which will be updated on a semi-annual basis as prices change.
If the Company breaches its minimum volume commitment during any applicable year or portion thereof, LG Energy is entitled to retain, as liquidated damages, the remaining balance of the Deposit or Prepayment for such year (i.e., amounts that have not yet been applied as a credit against purchased Cells), as applicable. If LG Energy materially breaches its minimum volume commitment during any applicable year or portion thereof, or in the event of a force majeure, LG Energy will be required to return the remaining balance of the Deposit or Prepayment for such year (i.e., amounts that have not yet been applied as a credit against purchased Cells), as applicable.
The Supply Agreement includes various representations, covenants, indemnities and other customary provisions and, except for certain exceptions set forth therein, will neither terminate nor expire before June 30, 2028. In certain circumstances, if LG Energy materially breaches its minimum volume commitment and fails to substantially cure such breach after receiving notice from the Company, the Company may terminate the Agreement and LG Energy will be required to supply all Cells ordered by the Company not exceeding 87,000,000 units for 12 months under the price and other terms in effect under the Supply Agreement at the time of such termination (subject to LG Energy’s liability for failure to continue supplying such sales being limited to the Company’s direct damages from such failure up to a maximum of the agreed contract price on the termination date for six months of production capacity of the assembly line built by LG Energy plus refund of the total remaining balance of the Deposit or Prepayment).

[WeTheMarket]

Romeo Power Announces Timing of Second Quarter 2021 Financial Results and Webcast
August 02 2021 - 05:40PM, Business Wire
https://ih.advfn.com/stock-market/NYSE/romeo-power-RMO/stock-news/85733762/romeo-power-announces-timing-of-second-quarter-202

Romeo Power, Inc. (“Romeo Power” or the “Company”) (NYSE: RMO), an energy technology leader delivering advanced electrification solutions for complex commercial vehicle applications, today announced that it will release its second quarter 2021 financial results after market close on Monday, August 16th. This release will be followed by a conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).

The call can be accessed via a live webcast accessible on the Events Calendar page of Romeo Power’s Investor Relations website at https://investors.romeopower.com/. An archive of the webcast will be available shortly after the call for twelve months following the call.

About Romeo Power

Founded in 2016 and headquartered in Los Angeles, California, Romeo Power (NYSE: RMO) is an energy technology leader delivering advanced electrification solutions for complex commercial vehicle applications. The company’s suite of advanced hardware, combined with its innovative battery management system, delivers the safety, performance, reliability and configurability its customers need to succeed. Romeo Power's 113,000 square-foot manufacturing facility brings its flexible design and development process inhouse to pack the most energy dense modules on the market. To keep up with everything Romeo Power, please follow the company on social @romeopowerinc or visit romeopower.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210802005777/en/

[TruckingAngler]

RMO unbelievable new lows???

[TruckingAngler]

Lots of EV buzzzz with Faraday starting today...
Lets go already RMO !

[Cburg]

Are they shipping product now? Did they get their cell sourcing problem solved?

[softballdaddy]

Call the sheriff , we have a runner

10.25

[trendzone]

Earning shorters the reddit crew is coming for you, their talking about it today over there, you better put on your seatbelts.

[Street Smart]

get the impression the sector is warming up again. That bodes well for RMO

[jablome]

i said, "o ya, can you feel it" =)

[jablome]

10k shares at 7.27

[jablome]

how you say, "balls deep"?

[TruckingAngler]

Can RMO ever go back over $10 let alone $20?
I'm seeing RED !!!
GLTA

[WeTheMarket]

You must have missed it. Jim Cramer did briefly mention Romeo, together with the other four stocks, here the graphic from that segment

[TruckingAngler]

I watched to see if he did mention RMO, and he did not - only others.
He also said "many are looking god at these levels" other than 2 exceptions.
RMO is looking good at these levels... IMO ?
GLTA

[WeTheMarket]

Jim Cramer bashed Romeo Power last night in his Mad Money show. He also bashed four other companies that also went public through a SPAC: XL Fleet, Lordstown Motors, Canoo, and Nikola. All of these companies already way down from their peaks following going public. Wouldn't it be nice if Romeo Power as well as the other four stocks all finished higher today.

[TruckingAngler]

Turd like chemistry.
They make the battery "packs"!!!

[ClayTrader]

* * $RMO Video Chart 04-07-2021 * *

Link to Video - click here to watch the technical chart video

[Cburg]

What cell chemistry do they use?
Anyone know how they achieve the big performance improvement?
Thanks!

[ClayTrader]

* * $RMO Video Chart 04-06-2021 * *

Link to Video - click here to watch the technical chart video

[TruckingAngler]

RMO good to be green again!!

[crudeoil24]

Shorts getting hammered > Heading to $20.00+ over next several days.

[crudeoil24]

Biggest volume day in company history.

RMO

[crudeoil24]

Huge deal to supply battery packs, modules and battery-management systems for electric vehicles made by Paccar Inc. under its Peterbilt brand.

The deal makes Los Angeles-based Romeo a supplier of batteries for Peterbilt 579 and 520 trucks through 2025. The companies plan to begin production after this year, Romeo said.

Paccar, based in Bellevue, Wash., also makes trucks under the Kenworth and DAF brands.

[crudeoil24]

momo/fomo/herd/volume! > $$$$$.

RMO

[girlfriend]

$12.09 over 108 Million volume on great news.....this should gap up in the morning.

[TruckingAngler]

RMO deal 4/6 with Kenilworth & Peterbuilt!

“Romeo Power, Inc. (“Romeo Power”) (NYSE: RMO), an energy technology leader delivering large-scale electrification solutions for complex commercial applications, announced today a long-term supply agreement with PACCAR (Nasdaq: PCAR), a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates, to provide battery packs, modules and battery management systems (BMS) for PACCAR’s battery electric vehicles (BEVs).

Under the agreement, Romeo Power will be a battery supplier for Peterbilt 579 and 520 BEVs in the United States and Canada through 2025. The start of production is anticipated to begin after 2021.

“Romeo Power is very pleased to extend its relationship with PACCAR through our new long-term supply agreement,” said Lionel Selwood, Jr., CEO of Romeo Power. “PACCAR will continue to be a great partner for Romeo Power as we work to achieve our shared goals of reducing emissions with safe, energy efficient technology solutions. We look forward to continuing to collaborate with PACCAR to deliver leading-edge energy technology solutions that provide our customers with the extended range, safety and reliability they need to succeed.”

“PACCAR is committed to industry-leading quality and innovation,” said Darrin Siver, PACCAR Senior Vice President. “Romeo Power’s battery technology solutions will enable PACCAR to deliver state-of-the-art transportation solutions that enhance customers’ operations and environmental impact. We are pleased to enter into a long-term supply agreement with Romeo Power as they are paving the way for cost-effective electrification within the commercial vehicle sector.”

[ZZZ888]

More positive news!!!
This price is a steal!!!

[WeTheMarket]

They are still partner with Romeo Power. See video of their recent interview with Jim Cramer on Mad Money, whose link was posted on Post #233.

[TruckingAngler]

That RMO joint venture with Borg Warner was from 2 years ago for Borg taking 20% position in RMO 5/2019.
Do we know if Borg pulled out?
GLTA

[WeTheMarket]

I have to admit, I was very disappointed with conference call.

[TruckingAngler]

RMO earnings really offering major dip...
GLTA

[WeTheMarket]

Romeo Power on Twitter:
Did you know that with a few tweaks, the #RomeoPower battery recipe can be perfectly adjusted for marine, aviation and off-road applications? Our proprietary tech allows for an unmatched level of modularity and #adaptability that will meet customer needs on roads, seas and skies.
Link: https://twitter.com/romeopowerinc/

[WeTheMarket]

Pride orders 100 electric trucks from Lion Electric
Mar 28, 2021

Lion Electric has received a purchase order from Pride Group Enterprises for the acquisition of 100 all-electric Lion6 and Lion8 trucks. The Canadian company says this order represents Lion’s largest single order of zero-emission trucks to date.

Lion Electric has just received this purchase order from Pride Group Enterprises (Pride) for the acquisition of 100 all-electric Lion6 and Lion8 trucks. While Lion Electric says this is their single largest order to date, the Canadian company also has a massive and semi-secret deal with Amazon that only coincidently came to light last year, but more about that later.

Pride Group Enterprises is the parent company for Pride Truck Sales, TPine Leasing Capital, TPine Truck Rental, Pride Group Logistics and Pride Fleet Solutions, and will be integrating the all-electric trucks into its existing logistics, full maintenance, leasing, rental and equipment retail operations throughout the US and Canada. The Lion Electric trucks will also be deployed by Pride with a selection of its fleet management clients. Most of the electric trucks should be delivered to Pride during 2021, with the remainder of deliveries expected to take place in 2022.

Lion Electric – previously best known for its electric school buses – unveiled the Lion8 in spring 2018. It is a US Class 8 e-truck, which is equivalent to local trucks over 15 tons. The 350 kW Lion8 offers up to 480 kWh of battery capacity for up to 400 km of range, using NMC cells from LG Chem. The Lion6 is analogous to a US Class 6 vehicle over 8.84 tons. Not much is known about this vehicle yet.

Now back to the claim that this order for 100 electric trucks is Lion Electric’s largest order to date. In January this year, it became clear that Amazon plans to procure up to 2,500 all-electric Lion 6 and Lion 8 trucks from Canadian manufacturer by 2025. The framework agreement already concluded with Amazon in July 2020 was revealed hidden in a long stock exchange notice.

The deal with Amazon, which has been in place since the summer, in hindsight now explains the large order Lion Electric placed with Romeo Power in November 2020. The Canadian company ordered battery modules and packs for Class 6 to 8 vehicles worth $234 million for a five-year period starting 2021. The deal with Amazon may also explain the confidence with which the Canadian company is pursuing an IPO, as announced in December just passed.

For the Quebéc-based Lion Electric, the revealed deal with Amazon is clearly running on a much larger scale than previously revealed. Now, the electric truck and bus maker has another large order with Prides procurement contract for 100 buses, which is indeed larger than their latest and largest (publically announced) order for e-trucks to date when Canada’s rail service requested 50 battery-electric trucks in September 2020. This latest order from Pride also has the whiff of the beginning of bigger things to come given Pride’s profile with the truck business in North America.
Link: https://www.electrive.com/2021/03/28/pride-orders-100-electric-trucks-from-lion-electric/

[WeTheMarket]

Romeo Power partner BorgWarner on CNBC Mad Money Friday 3/26/2021.

Auto supplier BorgWarner expects EVs to account for almost 50% of revenue by 2030
PUBLISHED FRI, MAR 26 20218:32 PM EDTUPDATED FRI, MAR 26 20218:32 PM EDT
Kevin Stankiewicz

CEO of auto supplier BorgWarner expects 45% of revenue to be tied to EVs in 2030
The CEO of auto supplier BorgWarner told CNBC on Friday the company hopes to have nearly 50% of its revenues be tied to electric vehicles within the next decade.

Currently, less than 3% of the Michigan-based firm’s sales are related to EVs.

“Our assumption is that 30% of the vehicle will be battery electric in 2030. It’s already kind of a bullish assumption. Our assumption is that we’ll be at 45% of our revenue,” CEO Frederic Lissalde said in an interview with Jim Cramer on “Mad Money.”

BorgWarner’s push to grow its EV business is in line with the moves made across the automotive industry. A range of electric-vehicle start-ups have hit the public markets in recent months, and established titans like General Motors and Ford have announced aggressive efforts to move away from internal combustion engines.

GM plans to exclusively offer EVs by 2035, the company announced earlier this year, and to become carbon neutral by 2040. In February, crosstown rival Ford revealed intentions to almost double its investment in EVs through 2025.

BorgWarner makes automatic transmissions and turbochargers, among other products. Both Ford and GM are customers, as are Volkswagen and Stellantis, which makes Jeep and Dodge vehicles.

BorgWarner is investing heavily to grows its EV business and plans to spend roughly $8 billion on the effort between now and 2025, Lissalde told Cramer: “We’re self-funding this pivot.”

“This moves towards electrification, we think at BorgWarner that is really profound. It goes at different speed and different region but it’s profound. Both in light vehicle and in commercial vehicle,” he added.

Shares of BorgWarner rose 4.7% Friday to close at $45.74 apiece. The stock is up more than 18% year to date and roughly 83% in the past 12 months.

Link: https://www.cnbc.com/2021/03/26/borgwarner-expects-evs-to-account-for-almost-50percent-of-revenue-by-2030.html?utm_content=MadMoney&utm_medium=Social&utm_source=Facebook&fbclid=IwAR10HpPm2SbwoFSObs2aYLVBGg4CggaNNETL-H6lAqm2IZgkg9n34LW6_qM#Echobox=1616806854

[WeTheMarket]

Competition intensifies for commercial vehicle battery makers
Alan Adler Alan AdlerWednesday, February 3, 2021

Competition is growing in the battery-making space for electric trucks and commercial vehicles, but Romeo Power CEO Lionel Selwood claims a two-year lead in adding cell density and battery range.

Moving beyond electric vehicles themselves, blank-check companies are targeting battery developers critical to the growing demand for zero-emission commercial vehicles.

The most attractive battery-making companies have track records and significant revenue, reducing the risk to investors. The special purpose acquisition companies (SPACs) sponsoring their public debuts promise hundreds of millions of dollars for rapid scaling of the businesses.

Take Romeo Power Inc., founded in 2015 by expatriates of Tesla, SpaceX, Amazon and Samsung. Romeo (NYSE: RMO) completed a business combination with RMG Acquisition Corp. on Dec. 28. It has $545 million in contracted orders and a customer base representing 68% of North American Class 8 truck manufacturers.

The $394 million that Romeo received at the closing of its reverse merger will fund the chase of European and Asian customers while adding contracts in North America, CEO Lionel Selwood told FreightWaves in an interview.

Then there is Proterra Inc., a maker of heavy-duty electric transit buses, drivetrains, batteries and charging systems. Its reverse merger with ArcLight Clean Transportation Corp. (NASDAQ: ACTC) will bring $648 million in cash and a $1.6 billion valuation to Proterra when the business combination is completed. Proterra’s order book: $750 million.

School buses and … excavators
Proterra recently cut a deal with Japanese construction giant Komatsu (OTC: KMTUY) to build a proof-of-concept electric excavator this year. Commercial production would follow in 2023 to 2024 using high-energy density and fast-charging technology.

An early investor in Proterra, Daimler Trucks uses Proterra batteries in its Thomas Built Buses subsidiary.

On Monday, 15-year-old battery maker Microvast Inc. made official an expected SPAC sponsorship by Tuscan Holdings Corp. (NASDAQ: THCB) in a deal valued at $3 billion.

Tuscan raised $276 million in a March 2019 initial public offering. It added $540 million from investors including defense contractor and heavy equipment maker Oshkosh Truck Corp. (NYSE: OSK) and Black Rock. The world’s largest asset management company frequently purchases private investment in public equity (PIPE) shares.

Microvast is focusing on commercial vehicles like port equipment and mining trucks because, as CEO Yang Wu told Bloomberg, passenger vehicle companies will make their own batteries. One example is General Motors Co., (NYSE: GM) which is building a plant in northeast Ohio for its $2.3 billion joint venture with cell maker LG Chem to assemble Ultium battery packs.

Romeo claims a lead
Romeo claims its battery packs deliver an average of 30% greater power density than competitors. In some applications, Romeo packs hold twice as much energy. That is critical to reducing the on-board mass of batteries needed to deliver long-haul range comparable to diesel-powered trucks.

“Depending on the state of charge, we can charge large-scale capacity batteries in 30 minutes or less today,” Selwood said. “We are driving toward being able to charge large-scale commercial vehicle batteries in 15 minutes or less in the future.

Romeo Power Inc. claims a 30% greater energy density in its battery pack than competitors. “Today, we’re enabling more than 300 miles on a single charge with our largest single-capacity batteries,” he said. “We are heads down trying to get to 500 miles on a single charge in the future. We’re the market leader. But I’m not happy. We need to get to 500 [miles].”

Energy density to match diesel
A single charge covering 500 miles and a 15-minute recharge time would put battery power on par with diesel. With less maintenance required, the total cost of ownership could be less. Romeo has evaluated more than 200 cell technologies.

“What that has allowed us to do is not only understand battery cells at the raw materials chemistry levels,” Selwood said. “It is allowing us to drive the development of the up-and-coming battery cell providers that nobody is really talking about.”

The big names in battery cells have multiple partners and big dreams. LG is working with GM; Panasonic provides cells for electric vehicle leader Tesla Inc. (NASDAQ: TSLA); and China-based CATL sells batteries to Daimler Trucks. Samsung is working on a solid-state battery with a 500-mile range.

Romeo’s partners
Even before it became a SPAC target, Romeo built sustainable relationships to grow its business.

BorgWarner Inc. (NYSE: BWA) formed a joint venture and invested $50 million for a 20% stake in Romeo in May 2019.

“We believe our global engineering and manufacturing footprint enables us to quickly commercialize cutting-edge technology,” Joel Wiegert, president of BorgWarner Morse Systems, said when the joint venture was formed. Wiegert is now CEO of engine drive systems maker Dayco Products.

“We were able to bring the leading-edge battery technology that kind of completes the [BorgWarner] portfolio,” Selwood said.

Romeo also counts waste hauler Republic Services Group (NYSE: RSG) among investors and partners. It signed a deal last week to retrofit two Republic trucks. Republic canceled a deal in December to buy 2,500 electric refuse haulers from startup electric truck maker Nikola Corp. Coincidentally, Nikola is also a Romeo customer.

“We believe our partnership with Romeo Power will strengthen our leadership position within our industry in both electrification and sustainability,” Republic Chief Operating Officer Tim Stuart said. He joined Romeo’s board of directors in November when it bought additional shares in Romeo’s SPAC sponsor.

Republic continues demonstration projects for electric refuse trucks with Mack Trucks and Peterbilt Motors.

Big contracts
Romeo nearly doubled the size of its order book in November when it signed a five-year production contract with Canada’s Lion Electric Co. Romeo expects to book $234 million in revenue from equipping Lion’s Class 6-8 commercial trucks and buses. The company recently expanded its 113,000-square-foot manufacturing facility in Los Angeles.

In January, Romeo signed a deal with Heritage Environmental Services that should lead to fleet sales of 500 electric trucks by 2025, with a long-term goal of electrifying 2,000 trucks.

“We’ve been proving our technology and putting it into the hands of customers, and that is translating to long-term agreements,” Selwood said. “That’s why you invest in Romeo versus just purchasing. The uptime and profit per mile and [return on investment] is what matters.”
Link to article: https://www.freightwaves.com/news/competition-intensifies-for-commercial-vehicle-battery-makers

[1maga1]

Have to be exercised 3-4 business days in advance so April 1

[stockticks]

Ah what price are warrants priced at? Expires April 5th?

[1maga1]

Those of us stuck with a ton of warrants don’t have the luxury of waiting lol

[stockticks]

I’m in for about two weeks now and looking forward to a bright future with Romeo.

[WeTheMarket]

News today from Romeo Power partner BorgWarner:

BorgWarner plans 15X growth in electrification revenue by 2030
Tier 1 supplier will shed up to $4B in current business to lead electric curve, by Alan Adler, Tuesday, March 23, 2021

BorgWarner is planning to increase its electrification revenue 15X by 2030 with an expansion into commercial trucking.

BorgWarner Inc. (NYSE:BWA) plans to grow its electric vehicle revenue from less than 3% to about 45% of its top line by 2030. The Tier 1 supplier will shed existing businesses worth up to $4 billion to get there.

The Michigan-based supplier last October completed a $3.3 billion acquisition of Delphi Technologies, once part of the world’s largest automotive supplier. In February, it announced an $880 million takeover of European battery maker AKASOL.

“Now is the time to move away from a balanced propulsion strategy and accelerate our shift towards electrification,” Frédéric Lissalde, president and CEO of BorgWarner, said in a press release before the company’s Investor Day on Tuesday.

“We’ve been building toward capitalizing on this opportunity for years. And [we] are confident we have the scale, portfolio, financial strength and team to execute successfully.”

‘Charging Forward’
Lissalde told investors the “Charging Forward” effort would consist of profitably scaling electric light vehicles, expanding into electric commercial vehicles and disposing of internal combustion engine businesses worth $3 billion to $4 billion in revenue.

“In most cases, these are still good businesses,” Chief Financial Officer Kevin Nowlan said. “They simply will be more valuable owned by someone else.”

BorgWarner projects $8 billion in revenue from light vehicle electrification by 2030, with an additional $2 billion from electric commercial trucks.

Evolving the business mix does not mean sacrificing double-digit profit margins, Lissalde said. BWA expects to generate $4.5 billion in free cash flow before any additional acquisitions between now and 2025, including about $1.5 billion it expects to gain from selling businesses.

All things to all customers
For BorgWarner to succeed as an electrification supplier, it must be able to offer components or entire integrated electric systems, Lissalde said.

The company’s acquisitions since 2015 position it to do that. In addition to Delphi and AKASOL, BWA in 2019 formed a 60/40 joint venture with commercial vehicle battery pack maker Romeo Power Technologies (NASDAQ: RMO). It also made two earlier acquisitions in the electrification space.

BWA expects to spend more than $3 billion on electrification research and development and acquisitions between now and 2025. It makes no money in electric vehicles today. BWA’s successful combustion-based businesses offset the cost of investment. BWA expects to be at breakeven or better in electrification efforts by 2024.

“Beyond that point, even with continued growth in R&D, we expect to drive increasing operating margins as the growth in revenue and gross margins accelerates,” Nowlan said. “We’re investing well ahead of program launches.”

Link: https://www.freightwaves.com/news/borgwarner-plans-15x-growth-in-electrification-revenue-by-2030

[WeTheMarket]

Why China Is Beating The U.S. In Electric Vehicles.

Paraphrasing a key point towards the end of the video:
"... but, its not too late for the US to compete and beat China in the US and European markets, due to the generally inferior quality of China's electric cars and batteries."

Link:

[WeTheMarket]

Alan Adler of Detroit Bureau Chief, FreightWaves, interview of Romeo Power CEO, Lionel Selwood:

[WeTheMarket]

Romeo Power stock is struggling today due to the following bearish article on Seeking Alpha.
Link: https://seekingalpha.com/amp/article/4415229-romeo-power-avoid-until-progress-is-made

[sukus]

Thanks for the insight. Will add Monday.

[BaseJumper35]

I knew it was a risk esp with market conditions, but we'll see... grabbed some more around 1.50 yesterday and if it dips hard again today I'll hit it again. Just hoping it doesn't fall apart. I think it will get another rush north bound still yet.

[WeTheMarket]

Romeo Power Stock Looks Like it Could Double
RMO stock is potentially worth $27.00, or double today’s price based on its comps, By Mark R. Hake, CFA Mar 19, 2021, 9:09 am EDT

Romeo Power (NYSE:RMO), the LA-based electric battery maker for trucks closed its reverse merger at the end of December and has fallen ever since then. RMO stock is down 44% year-to-date and has dropped 13% in the last month.

Battery concept powering electric vehicle.
Source: Shutterstock
Apparently, nobody likes it, even though it is in the EV space that the market favors. But that makes it attractive from a value standpoint, and RMO stock is a bargain.

Valuing RMO Stock
The SPAC merger (special purpose acquisition company) transaction was done at a value of 1.3 times enterprise value-to-revenue. But that was at $10 per share. Wednesday it hit $13.49, or 34.9% higher.

Therefore, RMO stock inherently trades today at 35% higher than 1.3 times EV-to-revenue. That puts it a valuation of just 1.75 times EV-to-revenue.

Romeo Power plans on announcing its Q4 and 2020 full-year earnings on March 30. Until then we have to rely on its presentation slides for most financial information.

For example, based on page 44 of the slide deck, Romeo Power will end up with $341 million in cash on its balance sheet. This is from a mixture of the blank check SPAC company cash held in trust for the reverse merger as well as the cash from the PIPE (private investment in public equity) deal.

As a result, the proforma enterprise value is $1.8 billion in market cap less $341 million in cash, or $1.459 billion. This is based on 133.4 million shares outstanding on page 44 of the slide deck.

But Romeo Power expects to make $229 million in revenue by 2023 and $547 million by 2024 (see page 43 of the deck). That makes its EV-to-sales multiple just 6.3 times in 2023 and 2.67 times in 2024.

Comparable Stocks
By contrast, Ballard Power (NASDAQ:BLDP) is forecast to make $392 million in revenue by 2024 — less than Romeo Power — and yet it has a $7.3 billion market value. Compare that to RMO stock, which has a $1.459 billion market cap.

Moreover, Quantumscape (NYSE:QS), another electric battery company is not expected to make more than $285 million in revenue until 2026. However, it has a market value of $20.9 billion. That gives it a price-to-sales ratio of 79 times.

Therefore, even if we were to double RMO’s target value to $2.92 billion or $27.00 per share, it would still be undervalued. But this leaves it with a margin of safety.

What Analysts Say About Romeo Power
Cowen analyst Gabe Daoud has initiated coverage on RMO stock with an “outperform” recommendation and an $18 price target. That represents a potential gain of over 30% from today.

The analyst says that Romeo is downstream focused, with a focus on battery module and pack production for commercial vehicles. He contrasts that with QS which is upstream focused and on producing solid-state batteries for wide-scale applications in all EVs. He expects both companies to scale their production over the next several years, “enabling the electrification of vehicles to accelerate.”

In addition, he indicated that the company will be very profitable:

“Romeo should benefit from software-like margins, 50%+, on the roll-out of its Brain Machine Interface (BMI) offering which enables fleet managers to lower their total cost of ownership by optimizing battery usage.”

What To Do With RMO Stock
RMO stock is clearly worth more than its price today. Compared to Quantumscape and other peers, it is way too cheap. My initial value is that it is worth $27 per share, and the only Wall Street analyst covering it says it’s worth $18 per share.

Therefore, most investors might consider taking a stake in the company at these prices if they are interested in the electric vehicle sector and don’t mind the lack of profits. Moreover, as I pointed out above, RO stock is below its previous peak prices.

Look for RMO stock to double over the next two or three years. That would give investors a potential annual ROI of 25.9% over three years. That is a good return for most investors.

On the date of publication, Mark R. Hake did not hold a long or short position in any of the securities in this article.

Link: https://investorplace.com/2021/03/rmo-stock-is-worth-at-least-double-its-present-price-based-on-comps/

[Street Smart]

GL they just need some real meaty news and decent finacials