Jim Kingsdale

Battery Wars

Thanks for all the good comments, all valid. I tried to indicate that the field of battle is continually changing and the ultimate outcome is totally uncertain at this point. So it's not clear that investors should be betting money on one technology or another right now. On the other hand, demand for Rare Earth Metals is growing independent of NiMH batteries. If Lynas clears up its financing, its stock could prove very rewarding. But in this market that is a big if.

Slow Start for Lithium-ion Hybrids

It's interesting that we have one vote for NiMH, one for lithium-ion, and two for capacitors. My point was that technological developments will be determinative in terms of when l-i becomes dominent, which should be a fairly non-controversial comment - true by definition. Same would hold for the possibility of capacitors. Maybe they both work for different markets. The only controversial thing in what I wrote - and the only reason to write it in the first place - is that the onset of the l-i age of motoring may not be quite as fast as all the car companies' announcements would suggest. Note that SQM's capital budget puts lithium in 3rd priority and only expands that capacity by 25%. Seems like SQM also thinks there is some time before a huge order inflow happens.

Incidentally, I love SQM's product line. But the stock doesn't seem cheap at somewhere around 25 -30 times projected earnings.