China Sun Group Hi-Tech Co. (CSGH)

[Ecomike]

I was reading a technical article on recycling lithium ion batteries today, and ran across some real interesting US Gov data that may help explain one of the other reasons that CSGH is so much more profitable than its competitors, reasons other than cheap labor, and overhead costs in China. It seems the cost of lithium cobalt (with nickel) is about FIFTEEN times more expensive (because of the cobalt primarily) than the lithium iron phosphate that CSGH is using in its high power EV battery cathodes!!!

Found on pg 14 of EETmag.com Jan/Feb 2012 edition.

http://eetweb.com/applications/uncertain-future-recycling-batteries-0212/index1.html

For example, with a cathode chemistry of LiCoO2, the value of the constituent materials is $9.90/lb, while the price of the cathode is about $12/lb. In contrast, the value of constituent materials from a cathode chemistry of LiFePO4 drops to around 75 cents/lb, while the price of the cathode remains high at almost $10/lb.

Last time I checked, CSGH was an early world leader in lithium iron phosphate supply and recently expanded their supply of Lithium iron phosphate (including patents) to supply ABAT and now more recently CBAK, which is partly why I started following these stocks in 2008, and started buying when the price got hammered by the shorts last year. It is also the lead technology for EVs as it does not have the fire-explosion safety hazards of the older cobalt and older lithium ion battery designs, and has a higher energy density per unit weight than the others, IIRC.

The entire sector is way undervalued here, and has a lot more upside potential than downside potential.

I am adding on the sell off dips when I get the chance and staying long for the long haul.