Delaware Power Charges After China’s Upside
Climate issues in China continue to be top of mind for national leaders concerned with the country’s health and future. One way China is trying to tackle this is by looking to innovative technologies like electric vehicles to help reduce the strain on less environmentally friendly and scarce natural recourses. 
As such, Delaware Power System Corp is making significant progress breaking into this highly lucrative Chinese market with its integrated battery technology for electric vehicles. As China looks to the world to help solve its looming environmental issues, Delaware is working hard to play a role in the country’s commitment to improved air quality. Furthermore, companies with green solutions to China’s dependency on coal will inevitably find traction in this mammoth market in the years to come as it becomes less acceptable for China to source its natural resources from African countries.
Delaware has a unique value proposition that it can offer to help accelerate China’s mass adoption of electric vehicles. Their integrated battery technology allows for electric vehicle manufactures to speed up their introduction to the market due to the highly universal communication tools their products provide. With Delaware technology electric vehicle manufacturers can focus their time on developing other components of the vehicle and simply use Delaware battery technology to power the vehicle with ease. 
Delaware’s battery technology is convenient for electric vehicle manufacturers because it can literally be purchased off the shelf, and with no customization required provide the vehicle with a power source that is not reliant on gas. Delaware also has the advantage of an integrated supply chain since it entered into a joint venture in 2008 with a Chinese auto component manufacturer to produce advanced lithium battery modules. The Chinese partner is a well-established automotive components manufacturer making alternators, starters and motors for global customers.
According to the authors of the article Reforms for Managing Urban Environmental Infrastructure and Services in Asia, published in the June 2006 issue of The Journal of Environment & Development, “increasing demand for adequate environmental services and effective natural resource protection, because of rapid urbanization and economic growth, is pushing national and local agencies to accelerate reform”. Where this presents an opportunity for Delaware is in that “on one hand, there are increasing demands for already-depleting natural environment resources and environmental services because of increasing population and economic activities.
[While] on the other hand, national and international priorities to provide safe water and sanitation, solid waste management, and clean air, under various initiatives including the Millennium Development Goals, require prompt and appropriate investment to improve the coverage and quality of environmental infrastructure and services.” Delaware has partnered with a number of local Chinese companies to provide them with their state of the art standardized battery platform to power electric vehicles and backup power systems which will help reduce the country’s dependency on depleting natural resources that are also harmful to the environment.
Delaware not only provides China with helpful technologies but they also provide investors with an avenue for investment in China. For the average or even savvy investor, investing in China can be very complicated, have huge hurdles and, quite frankly, be more trouble than its worth. With government bureaucracy and corruption still present in the infant financial market, China continues to be an intimidating country to invest in.
So what is an investor interested in China to do? Take a gamble investing on the Shanghai or Shenzhen Stock Exchange with its inherent volatility? A recent Canadian Press article, Investing in China a tricky business at the best of times, experts say, by Craig Wong on June 9, summarizes the contention nicely. Wong quotes Kai Li, a finance professor at UBC’s Sauder School of Business, who “characterizes the Chinese stock market as something “worse than a casino” where insider trading, poor corporate disclosure and lousy shareholder protection are just the beginning of the list of potential pitfalls.” Another option is to invest in a Chinese company on a US Stock Exchange that also likely suffers from asymmetric information and presents a stock price that is not truly representative of the value of the asset’s cash flows. If none of these options seem attractive but investment is China is something of serious interest then a safer alternative can be investing in the GreenAngel Energy fund on the TSX (TSX. V: GAE). Investment in this fund allows indirect investment to China via its investment in Delaware Power System Corp. This highly diversified and liquid investment allows investors to benefit from the upside of Chinese investment in the future with far less risk than other options presented above.
And the upside is big. China is no longer just an export economy focused on saving. As the middle class continues to grow and with consumer spending on the rise, there is no argument that China has huge potential for investors. The challenge here however is as mentioned above in regards to the unavoidable risks. One way GreenAngel Energy is mitigating its risk in China is by entering the market via Delaware, who is providing a technology to the market that is absolutely needed and have partnered with local management who understand the cultural and governmental idiosyncrasies of China. Delaware’s many contracts with Chinese companies is a sign of great things to come for them in this highly profitable foreign market.
Finally, we’d like to share a video we came across that further discusses the uptake of green technology investment in China.
Learn more about Delaware Power System Corp: GreenAngel’s Delaware Profile
About GreenAngel’s unique public angel investment model: Quick Facts About GAE