The past two years have seen a seismic shift in how the auto industry runs its business, manufactures cars, and adjusts to changing consumer and political clean energy demands.

Now with the development of new clean power technology within the audio industry, investors can cash in on the hybrid future.

Green Power Metals are revolutionizing new clean power technology within the auto industry, and pure metals plays are a great way to cash in on the clean energy future. In this Investment Market Report, I will explore Green Power Metals, the technology behind their uses, the factors that are causing demand for these metals to skyrocket, and how you can profit now.

Green Energy Practices Around the Globe

Let me explain how the idea of implementing green energy practices has proven to be a successful venture around the globe.

A few years ago, I visited Samsø, a small island off the coast of Denmark, which in 1997 had entered a global competition to become 100% reliant on renewable energy resources in 10 years. I saw a huge opportunity in the windmills and solar panels that provided the island with so much energy that the surplus was sold to the mainland.

Samsø accomplished its goal of becoming a green island, using renewable sources for its electrical needs, in 2008. The next step was to address the issue of transportation. Folks had to take a ferry from the mainland to get to the Samso, and though the island is small, you did need a car to get around.

And that means burning fossil fuels and to date Samso is still looking for solutions to this problem.

In fact, all around the globe transportation seems to be a hot topic within any clean energy initiative.

Clean Energy Initiatives

For example, inside the economic stimulus package is about $80 billion in spending, loan guarantees, and tax incentives geared toward promoting energy efficiency, renewable energy sources, fuel-efficient vehicles, and coal that is truly clean.

These incentives, which are crucial for future development, means there’s a lot of money to be made in alternative or green energy.

But consumers are also demanding higher gas mileage and environmentally friendly cars. Auto shows are featuring electric vehicles and plug-in hybrids, futuristic concept cars designed for fuel efficiency.

And with the development of new technologies within this industry, the demands for Green Power Metals may be able to positively change the transportation and auto industry.

What Are Green Power Metals?

Green Power Metals have been around since the Earth was made. They make up significant portions of our Earth’s crust and are well-known names on the periodic table. Here are a few examples of Green Power Metals:

• Lithium
• Nickel
• Platinum
• Cobalt
• Manganese
• Silver

You’ve read about them in science class, and you’re already using them in your home, in your computer and the car you’re currently driving. But consumer demand and new technological innovations in the auto industry are making these metals stars in today’s renewable energy market and the next generation of vehicles will use Green Power Metals in unprecedented amounts.

Future changes are not only factors involved in what consumers want these days. Political mandates have put pressure on automakers to meet new demands for advancing vehicle and fuel technologies.

President Obama has said he wants 1 million rechargeable vehicles on the road by 2015 … and that spells huge changes in the auto industry. And there’s more.

In May 2009, President Obama announced new fuel-efficiency standards for all new cars sold in the U.S. beginning in 2012 through 2016 known as the Federal Corporate Average Fuel Economy (CAFE) standards.

Here’s what the new CAFE standards will do:

• Raise the current average mileage standard from 25 miles per gallon for all vehicles to 39 miles per gallon for cars and 30 miles per gallon for trucks by 2016
• Regulate the amount of CO2 from tailpipe emissions for the first time
• Expected to reduce CO2 emissions from tailpipes by 900 million metric tons, the equivalent of taking 177 million cars off the road
• Expected to save 1.8 billion barrels of oil over the life of all new vehicles sold between 2012 and 2016

Profiting From Efficiency Standards

Now, we know that risky deepwater drilling is a profitable business especially when the U.S. is importing 2 billion barrels of oil a year from OPEC nations alone. But it may just be more profitable to curb oil consumption through the implementation of efficiency standards.

Here’s why…

In 2004, news wires were comparing the appeal of the GM Hummer to the Toyota Prius. Between July and November 2002, Hummer sales of the H1 and H2 doubled from 1,922 to 3,933… And politicians were saying that driving these types of giant vehicles was engrained in the American way of life.

But by mid-2004, as gasoline prices topped $2.00 a gallon for the first time ever, Hummer sales were falling off a cliff. Between December 2003, and January 2004, sales fell nearly 50%, and GM slashed its full year forecast by 25%. The stock’s share prices followed suit, falling from $45 a share in January 2004 to less than $35 a share in December 2004.

On the other hand, the Toyota Prius was gaining in popularity. In fact, according to Autodata, in 2004, the Prius was outselling Hummer by 2-to-1. And Toyota was boosting 2004 production by 50%.

What did that do to Toyota’s share price?

Between January 2004 and January 2007, Toyota stock climbed 98.5%, demonstrating that implementing fuel efficiency can be profitable.

How Are Green Power Metals Used?

These metals are essential components of hybrid batteries and catalytic converters, among other complex auto parts. They play key roles in power generation and efficiency, and as consumer demand and the automotive market move toward higher fuel efficiency standards and new power options, such as plug-in hybrid technology, the demand for Green Power Metals is going to get bigger.

Take a look at some of the new innovations in the auto industry. Two manufacturers have released fully electric vehicle (EV) models for 2011: GM’s Chevy Volt and Nissan’s Leaf.

These two EVs are huge steps forward for the auto industry, and new Green Power Metals technology is right in the heart of it.

Literally.

The new General Motors (NYSE:GM) Chevy Volt EV will have a line of lithium-ion batteries running down the middle of the car… Very much like a heart pumping power. These batteries will be made by South Korean company LG Chem.

According to GM, it would cost about $1.50 to “fill up” the new Chevy Volt every night. The Volt can run on battery power for up to 40 miles. The Volt has a small gasoline engine that can recharge the battery so that you can get another 300 miles before you need to recharge and refill your tank. That means, in total, you can drive 340 miles on a single “tank” in the Volt.

The Nissan (PINK:NSANF) Leaf EV will also be powered by lithium-ion batteries… and the company is producing them itself with the help of NEC Corp. (PINK:NIPNF). This pack is made with lithium-manganese gel, and is on the cutting edge of new battery technology.

The Nissan Leaf is all electric, foregoing the weight of the extra engine. That means the Leaf can drive up to 100 miles on a single charge, 2.5 times more than the Volt’s battery capacity, but much less than what you’d get with both Volt’s power sources. The company estimates that it would cost about $400 a year to drive the Leaf, using an average driving distance of 15,000 miles and an average cost of $0.11 per kWh.

Remember, GM and Nissan are just two companies with new battery technology to hit the market, but there are more coming down the pipe, and a lot of political and financial backing to go with them.

Ford, Toyota, Fisker Automotive, and Coda Automotive recently have or soon will be releasing either plug-in hybrids or all electric vehicles, or both.

There are even changes in traditionally fueled cars. Ford’s (NYSE:F) newest line of Explorers will boost fuel economy by 30% by using a “car-like” unibody instead of an SUV unibody. The 2011 Explorer will also use the new EcoBoost turbocharged four-cylinder engine that will pump fuel economy above 20 miles per gallon.

And let’s not forget the earlier EV innovations from Smart Car and the Tesla Roadster.

These guys broke the mold on electric vehicles… And demand grew so quickly that Tesla was able to conduct a successful IPO in 2010 and raised $200 million from it.

The Increase in Demand for New Battery Technology

Let’s talk about Green Power Metals battery demand specifically.

EV World Magazine and market researcher Freedonia Group estimate that battery demand will jump to $22.8 billion a year by 2012. The main components of batteries are metals, chemicals, and polymers.

And while nickel metal hydride batteries currently hold the lion’s share of the market, lithium ion batteries are proving to be the more efficient and powerful type of battery. This Green Power Metal technology is expected to gain market share very quickly.

Interestingly, lithium is a difficult element to pin down, and its uses are so varied that it’s hard to get specific production and usage data. There is one thing though…

In January 2008, the U.S. Geological Survey found only two companies that produced a large array of downstream lithium compounds in the United States from domestic or South American lithium carbonate. One of those companies is FMC Corp. (FMC:NYSE).

FMC has a whole division dedicated to lithium production that has been in existence for more than 60 years. It is a worldwide leading developer and supplier of lithium-based materials for primary and rechargeable batteries and has seen demand for this Green Power Metals go up

In mid-December 2008, FMC joined an alliance of more than 14 companies focused on the commercial production of lithium ion batteries for auto-manufacturing.

Known as the National Alliance for Advanced Transportation Battery Cell Manufacture, it receives support from the Department of Energy, the Department of Defense and U.S. truck and automakers. Over the next five years, the alliance is expected to need between $1 billion and $2 billion in funding, much of which will come from the government.

Efficient Combustion Engines

Aside from battery technology, Green Power Metals play a big role in making traditional internal combustion engines more efficient and clean.

For example, ON Semiconductor (ONNN:NASDAQ) is one company involved in making micro-chip sensor interfaces, which can help reuse power and decrease pollution, thereby making traditionally-fueled vehicles more efficient.

They’re also involved in using Green Power Metals for other power and digital solutions for the auto sector, personal computing, telecommunications and industrial sectors… just to name a few.

Each of ONNN’s “tech” solutions contains Green Power Metals such as nickel, silver, lead and palladium.

Ways to Invest in Green Power Metals

As you can see, there are a number of different ways to invest in Green Power Metals… from new hybrid technology to battery technology to microchip sensors.

Let’s dig a little deeper into some specific investment areas, starting with battery technology.

There are a number of battery makers out there, and they range in type from a semi-conductor company that also specializes in other green technologies like solar power, to industrial equipment makers who dabble in nanotechnology.

Companies like:

• Energy Conversion Devices (ENER:NASDAQ)
• Ener1, Inc. (HEV:NASDAQ)
• Valence Technology, Inc. (VLNC:NASDAQ)
• China BAK Battery, Inc. (CBAK:NASDAQ)
• A123 Systems, Inc. (AONE:NASDAQ)

This list represents just a few companies. Other battery makers specialize in electronics batteries but are just starting to dabble in the auto industry, so the list keeps growing.

Now, here’s the thing… Over the past couple years, many of these companies have been beaten down. There’s no way to sugarcoat the losses. Several are down more than 40%.

But that doesn’t have to be a deal breaker.

As I’ve outlined earlier, the demand for new battery technology and these types of companies is expected to climb to $22.8 billion by 2012.

Hybrid battery technology is certainly the biggest change in the auto industry’s move toward higher fuel efficiencies, but it’s not the only way. Even traditionally fueled cars can get a boost from things like power management and distribution solutions.

Companies like:

• Tenneco Inc. (TEN)
• Johnson Controls, Inc. (JCI)
• Magna International, Inc. (MGA)
• Visteon Corp. (VSTN.PK)
• Delphi Automotive, LLP (Private)

For example, JCI offer a number of automotive efficiency solutions, such as electronic power distribution modules and battery management systems. These solutions are also available to the hybrid market. In essence, JCI’s centrally integrated systems control how much power is needed where. This means fewer command components, less weight in the car, and less costs to the consumer.

Go to the Source for Pure Plays

Now, none of the companies I previously mentioned is a pure play on Green Power Metals. For that, you have to go to the source… And buy the metals themselves. Or the companies that mine them.

Companies like:

• FMC Corp. (FMC:NYSE)
• Freeport-McMoRan Copper and Gold, Inc. (FCX:NYSE)
• Chemical and Mining Company of Chile, Inc. (SQM:NYSE)
• Vale S.A. (VALE:NYSE)
• Stillwater Mining Co. (SWC:NYSE)
• North American Palladium Ltd. (PAL: AMEX)
• ETFS Physical Palladium Shares (PALL:NYSE)
• Platinum Group Metals Ltd. (PLG:AMEX)
• ETFS Physical Platinum Shares (PPLT:NYSE)

These are your Green Power Metals. For the purest plays, the ETFs are your best bet, but the mining companies in this list deserve a look, too, but be sure to know exactly what they’re mining. Some in this list mine a lot of other metals that aren’t as connected to Green Power Metals. For example, Stillwater is a lithium mining company while Freeport-McMoRan mines all the metals it can find.

Of course, these companies and investment securities are just the tip of the iceberg when it comes to metals and metal mining companies.

Green Power Metals are revolutionizing the auto industry, and pure metals plays are a great way to cash in on the clean energy Future.

Four Ways to Invest in Green Power Metals

Here are four ways to invest in Green Power Metals to help you strategically position yourself based on what’s already in your portfolio.

You may already be holding some metal ETFs or mining companies in your portfolio as a hedge against inflation, so you might want to consider one of the other Green Power Metal opportunities.

You could buy one of the new electric or hybrid vehicles coming to market. That wouldn’t be a bad move… These new choices are really generating a lot of interest, and interest - not to mention demand - for Green Power Metals will also grow.

I mentioned FMC Corp. (FMC:NYSE) as one of the metal source companies to consider. Their stock has climbed almost 20% in the last year… more than two-and-a-half times the gain in the S&P 500 over the past 52 weeks.

I also mentioned Johnson Controls, Inc. as one of the Automotive Efficiency Solutions. JCI (JCI:NYSE) has jumped more than 18% - or more than two times the S&P’s gain.

But you don’t need to hit a home run with every investment. Investing in Green Power Metals means investing in a long-term change in an important industry. FMC’s 20% gain, JCI’s 18%, and Vale’s 26% gain all add up.

As you can see, Green Power Metals offers investors an attractive opportunity to not only play this new clean power technology within the auto industry but also cash in on the clean energy future we’ll be seeing for some time to come.

In closing, investing in the first wave of Green Power Metals gets you in on the ground floor of this auto revolution, and the potential is astounding.

Other Related Topics: Alternative Energy , Auto Manufacturers , Autos , ETF , Green Power Metals , Mining Industry , Sara Nunnally , Smart Investing Daily

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