Polar Power Inc (POLA)

[southacresdave]

POLA's statement on Linkedin concerning China magnets:

https://www.linkedin.com/feed/update/urn:li:activity:6541002988717203456

"The USA-China trade war is spurring concerns that China could withhold shipping of magnets to USA. Polar is a direct importer of such magnets. Having "burned & learned" from previous artificial shortages & price gouging of Chinese magnets, we typically carry a 1 year stock of magnets and,
facing potential escalation of this trade war, will increase inventory stocks to 18 months.
A year magnet supply affords us time to switch to Japanese suppliers if required.
Another solution could be to move magnet procurement and assembly to Polar’s Australian location, either continuing to procure Chinese magnets or develop new sources in Australia, which is the second largest producer of rear earth magnets.
If magnet costs climb too high in the future, Polar could change its technology from Permanent Magnet to either Homopolar or Switched Reluctance. This would drop efficiency by 4% to 8% but our machines will still be far more efficient that AC generators.
Polar’s business model is based on providing unique Power and cooling solutions developed from extensive engineering experience. Being able to change and evolve technologies and products is the direct advantage of having our own engineering teams and vertical manufacturing.