I think there is some IP there that give them some protection and definitely have value but in general all these guys (JCI, Saft, panasonic) can be in business and still make good money.
I'm not a chemist but my crude understanding is that LFP batteries are more stable (safer) than Li Oxides but have less energy density. In my mind if you can make one Li battery you can make another and should depending on the end use. LFP should do better in the slower evolving utility/infrastructure markets but should be hard to displace. The battery utility fire in Hawaii last year is a perfect example for why they utilities would want a more stable battery. Germany should have lots of demand for this as they are committed to 25% power from renewables but they are starting to have grid stability problems that come with renewables as they aren't replacing peak loads. Batteries should be able to expand this. This battery doesn't have the energy density of some other Li batteries so it wouldn't be an optimal choice for an EV car, imo. However, in the litigation happy US market it may have better acceptance which again have lots of value for someone.
There is also value to how to make these batteries. For a Korean or Chinese company it would take years to not only really get batteries but even longer for a process to make them. For $100M you can save yourself lots of money in R&D.
In the end, I can see your thought on an outcome here. May pick up a small position. What % of the debt and equity does Berg hold?
