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Quick Note From Istanbul

|Includes:AXPW, EnerSys (ENS)

Yesterday in the opening session the president of Enersys Europe (NYSE:ENS) said that stop-start was sweeping Europe and the industry expects it to be a dominant technology by 2015 and standard equipment on all cars by 2020. He also said most of the current stop-start systems are dual battery systems where the total battery value per vehicle was 2x to 3x historic norms.

This morning BMW presented their proposed dynamic charge algorithm for testing stop-start batteries which is working it's way through the EU regulatory system. It uses a 60 second load of 50 amps to simulate accessories during an engine off event. a 1 second load of 300 amps to simulate the start cycle and a recharging cycle to restore an 80% state of charge.

Immediately after the BMW presentation, Axion Power (NASDAQ:AXPW) presented a paper that was co-authored by BMW which showed longer term cycle life performance that mirrored the battery degradation graphs I published a couple weeks ago here:

seekingalpha.com/article/222492-why-baby...

Based on everything I've seen here, it looks like flooded lead-acid won't work in stop-start. VRLA may work in vehicles that are not accessory rich and PbC will be very competitive for cars with heavy electronics loads. If the BMW testing protocol is adopted by the EU, the PbC advantage will be even greater.

I'm working on a laptop which is a monumental pain so I'll do something more detailed when I get back to the office.


Disclosure: Long AXPW.OB

Stocks: ENS, AXPW