Regarding pack validation, FLUX has obtained (or is in the process of obtaining) certifications for its LiFT Packs through global safety science company, Underwriters Laboratory (UL). To complement the BMS, FLUX provides telemetry services, known as SkyBMS Telematics, that transmit and store BMS data through Amazon Web Services and can be used for remote battery diagnostics, reports, alerts and notifications, and other fleet management solutions.įigure 1. In December 2020, FLUX filed additional patent applications for three BMS capabilities: (1) increasing battery life by optimizing charging cycles, (2) educating users on battery health, and (3) applying artificial intelligence (AI) to predictively balance cells for optimal performance. FLUX’s patented, proprietary battery management system (BMS) is the “brain” of its products, that manages cell balancing, monitoring, charging, and discharging, and communication with machinery to prevent batteries from operating at unsafe capacities. The company devotes extensive resources to ensuring its LiFT Packs are properly designed, maintained, and consistent with both major OEM equipment and relevant safety guidelines. This highlights the need for a trusted supplier who provides a readily available energy source that preserves the safety of both its users and the environment.įLUX differentiates itself by developing quality products and services. These examples are reminders that, despite ongoing improvements to battery monitoring and regulation, lithium-ion batteries are not without risk. Examples include Nokia’s recall of 46 million batteries that could overheat or explode (2007), battery fires during transportation aboard Boeing 787s (2013), Samsung’s recall of 2.5 million Galaxy Note 7 smartphones that were prone to catch fire (2016), and more recently, a fire in Tesla Megapack’s utility-scale stationary energy storage facility on Aug. When the battery overheats, it releases energy to its surroundings in the form of heat, light (sparks), or sound (explosion). From initial construction in the late 1980s to today’s widespread commercial applications, lithium-ion batteries have possessed a recurring flaw-thermal runaway. Lithium-ion batteries, however, pose safety risks if not properly manufactured. We believe lithium-ion batteries are the most dependable, capable resources for serving these target markets. Competing energy sources include lead acid batteries (most widely used), internal combustion engines (ICEs), and hydrogen fuel cells, each of which present tradeoffs between safety and efficiency. The bulk of FLUX’s products support materials handling equipment (e.g., forklifts), where safe, efficient energy sources are essential for operators to make full use of their equipment fleets. On September 16, 2021, the stock was trading at a 2.53 forward-looking P/S multiple.įLUX designs, develops, manufactures, and sells advanced rechargeable lithium-ion energy storage solutions for lift trucks, airport ground support equipment (GSE), stationary energy storage, and other industrial and commercial applications. As a reminder, we wrote about FLUX on November 5, 2020, when the stock was trading at a 3.51 P/S multiple (NTM). We will also perform a brief valuation comparison versus a few peers to show why we believe the stock should trade above its current level. Here, we will provide a quick reminder on how FLUX operates and how it has executed since our prior piece in late 2020. In short, in our opinion, lithium-ion batteries are the most viable energy source for materials handling machinery. In addition, hydrogen fuel cells, which are quite energy dense and can be quickly replenished, contain flammable gas that is both dangerous and expensive to operate, store, and transport. Carbon emissions and high maintenance and refueling costs of internal combustion engines (ICEs) outweigh their cheaper upfront expenses and ease of refuel. Regarding non-battery solutions, we note the following disadvantages. On the other hand, a lithium-ion battery requires less frequent recharges, can operate at much higher temperatures, and functions as a sealed system, that does not require fluid management and avoids handling risks. The battery can overheat from overuse or overcharging, and improper handling whilst watering the battery can expose an individual to toxic gases and liquids. From a safety perspective, lead acid batteries pose significant environmental and safety hazards. From a productivity perspective, lithium-ion batteries can operate over longer intervals and lifespans compared to lead-acid batteries. (NASDAQ: FLUX), we highlighted the advantages of lithium-ion batteries over their lead acid counterparts. In our previous article on Flux Power Holdings, Inc.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |