Close menu

December 12th, 2022 | 10:45 CET

100% is possible: BYD, Varta, Power Nickel, BASF: E-mobility stocks for 2023!

  • Mining
  • Nickel
  • Electromobility
Photo credits:

With advanced stock market corrections, rising inflation and disrupted supply chains, many market participants wonder if 100% is possible in 2023. It is! Because there are currently many challenges to solving the climate and energy crisis. More than ever, revolutionary ideas with vision are in demand. The pressure to innovate could not be higher in the area of batteries for e-mobility because the issues of range, service life and recycling have not yet been satisfactorily resolved for consumers. Some representatives of the industry have already recognized the signs of the times.

time to read: 5 minutes | Author: André Will-Laudien
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , VARTA AG O.N. | DE000A0TGJ55 , Power Nickel Inc. | CA7393011092 , BASF SE NA O.N. | DE000BASF111

Table of contents:

    Terry Lynch, CEO, Power Nickel
    "[...] Nickel, therefore, benefits twice: firstly from its growing importance within batteries and secondly from the generally growing demand for such storage. [...]" Terry Lynch, CEO, Power Nickel

    Full interview


    BYD - The Chinese number 1

    Despite a mega deal with Sixt and the entry into the European automotive markets, the BYD share experienced the biggest correction in 3 years in the fall of 2022. "Build Your Dreams" first came into investor focus in 2008, when Berkshire Hathaway, the investment company of stock market guru Warren Buffett, invested in the Chinese manufacturer of electric vehicles and batteries.

    BYD saw its best year in 2020, with the Chinese electric vehicle market booming and the Company unveiling the revolutionary Blade Battery. At the time, the new super unit for electric cars set new standards in the safety of e-cars due to its low heat generation. The battery innovation also provided more range and significantly longer service life. The stock market rewarded the innovation with a price increase of more than 400%, and Buffett's investment holding company earned handsomely. But because of increasing tensions between Washington and Beijing, many analysts recently advised caution. Berkshire owned, at the peak, almost 25% of BYD. Through substantial reduction, the share recently fell to below 16%. Thus the analysts from Omaha realized over USD 1 billion in profit.

    Despite rising competition, BYD is still China's best-selling electric car brand. It has already clearly overtaken US rival Tesla on the domestic market. That is because while BYD shipped 103,157 pure electric vehicles from its Chinese plants in October, Tesla's total was just 71,704 units, according to CPCA data. After hitting a low of EUR 20.80, BYD shares have turned around and are again targeting the EUR 26 mark. Thus, the value is still a good 60% away from its high. If the EU electricity crisis does not put a spanner in the industry's works, e-mobiles should be able to capture an increasing market share in 2023 as well.

    Power nickel - The next blockbuster nickel deposit

    When thinking about battery technologies, there is no getting around nickel, graphite and cobalt in addition to lithium. The first commercially available lithium-ion battery was the lithium cobalt dioxide battery, or LiCoO2 battery, which Sony used primarily in video cameras in 1991. Nickel-manganese-cobalt (NMC) cathodes are currently the most successful lithium-ion system because they offer a good compromise between general electrochemical performance, high energy densities and production costs. The success of NMC cathodes is due to the combination of nickel and manganese; the nickel brings a high specific energy density to the material.

    Since 2022, electric vehicle manufacturers have had a nickel procurement problem because the demand for lithium-ion batteries currently consumes 8% of the world's nickel production of 2.7 million tons annually. For NMC batteries, the nickel share is currently about 40%, with 75% of global production coming from Russia. Since the start of the Ukraine war, there have been enormous shortages of nickel, and car manufacturers are desperately looking for alternative sources of supply. VW, for example, wants to cover its nickel requirements from Indonesia, and several projects are underway in North America.

    Canadian explorer Power Nickel (PNPN) has a flagship project called NISK in Quebec. With mineralization for nickel, copper, cobalt, palladium and platinum, NISK slays nearly all the major future metals in one property. Power Nickel was created in 2021 by its predecessor company, Chilean Metals. Today, the new Company has a mining investment portfolio that includes a 100% interest in the Golden Ivan project, a mineral deposit with polymetallic veins of silver, zinc, gold and copper. In addition, the Company is also well-represented with concession rights in Chile. They include five properties with over 50,000 acres strategically located in northern Chile's prolific iron oxide-copper-gold belt.

    Power Nickel plans to focus on battery raw materials in the future. According to a 2021 study by the Nickel Institute, the proportion of Ni in modern batteries will increase from around 39% to 58% by 2025. With its NISK project, Power Nickel is well positioned to supply high-quality nickel to battery producers, as recent drill results returned a grade of 1.17% nickel with high purity. The Company was just able to refinance to the tune of CAD 4.19 million, which creates room for further operational steps. Despite the current poor environment for explorers, the promising PNPN share has been on the upswing for 6 weeks and has already made substantial gains.

    BASF and Varta - Two interesting battery players with opportunities

    Two shares from the industrial sector are currently making a splash. BASF reports good figures despite rising energy prices, and the raw materials subsidiary Wintershall-DEA is helping tremendously. At Varta, the current market conditions are a cause for concern because customers are hesitant, and the sharp rise in production costs cannot yet be passed on.

    The analyst consensus for BASF has recently become much more positive again than was the case at the beginning of the Ukraine conflict. In the meantime, BASF has assured that it can manage quite well even with 50% less gas. At the same time, the increased prices on the world markets are playing into the cards of the market leader for chemical precursors. Because those who can currently deliver are in demand, supply chain problems have to be overcome. BASF has made a strategic decision to invest EUR 10 billion in China. Even though this is being loudly criticized in public, the Ludwigshafen-based company is systematically moving closer to the growth markets. Understandably, the prospects in Europe do not encourage major investments. Ultimately, the global corporation also has a duty to its shareholders and is not subject to dictates from Berlin or Brussels. BASF's claimed profits and attractive dividend policy entice investors to buy the stock in the EUR 47 range.

    Varta recently had to cope with some problems, and the outlook had to be revised several times. The share followed the disaster and fell from around EUR 180 to EUR 26 since 2020. The selling pressure is easing again due to more positive analyst opinions, which creates room for a small technical recovery. Still, analysts do not see any fundamental reasons to buy at present. The mean price expectation on a 12-month horizon is at a low EUR 31.30. Leave Varta nevertheless on the watchlist and wait for positive statements from the management. The first 20% in the turnaround are known to be the riskiest and should be left to professionals.

    The battery market is under high pressure. According to legislators, things have to move quickly so that the issue of climate protection finally delivers tangible progress. BYD, BASF and Varta occupy the industrial side. Power Nickel is to grow in the medium term to become a raw material producer in North America or will be taken over beforehand because of its attractive properties.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author

    Related comments:

    Commented by Fabian Lorenz on January 26th, 2023 | 20:11 CET

    Big surprise for Tesla hunter BYD and JinkoSolar: when will dynaCERT share takeoff?

    • Electromobility
    • Energy
    • renewableenergies

    Now, this would be a real surprise: Will Tesla hunter BYD soon not only sell its e-cars in Germany but also produce them? According to media reports, the Chinese carmaker is talking to Ford about buying the plant in Saarlouis. Another Chinese group is also continuing to go full throttle: JinkoSolar. The solar group reports strong figures, the start of construction of a reference project and analysts increase the price target for the share. Investors are also waiting for a big bang from dynaCERT. The cleantech company wants to enter into trading with emission certificates. In addition, sales figures are increasing in the core business.


    Commented by Juliane Zielonka on January 26th, 2023 | 20:10 CET

    Freyr Battery, Auxico Resources, Plug Power - Rare earth battery boom in e-Mobility

    • Mining
    • RareEarths
    • fuelcell
    • Electromobility

    One of Norway's largest financial services companies is increasing its equity stake in Plug Power, the US hydrogen fuel cell company. The reason: Nikola Motors has selected the Company to upgrade its new e-mobility fleet with clean fuel cells. Freyr Battery also has similar ambitions. Here, Impact Clean Power Technology, the Polish manufacturer of battery systems for heavy-duty vehicles, has signed an agreement with Freyr to purchase clean batteries. Both big deals have one thing in common: demand for rare earths and valuable metals to make green technologies a reality. That is where Auxico Resources, a mineral exploration company focused on Africa, comes in.


    Commented by Nico Popp on January 26th, 2023 | 20:07 CET

    Gold and war - rethink now! Barrick Gold, Globex Mining, Rheinmetall

    • Mining
    • Gold
    • Commodities
    • armaments
    • Growth

    Gold is shining again. The weaker dollar and the existing geopolitical risks are boosting the precious metal. But how should investors invest? What opportunities are there off the beaten track? And: Given the crises, does gold have to be in the portfolio? We highlight three hot stocks and provide insights and outlooks on the gold price and the overall geopolitical situation.