February 11th, 2022 | 13:46 CET
1000% possible: Varta, Standard Lithium, Power Nickel: The super battery is coming!
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"[...] 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
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.
Standard Lithium - Shortsellers are still on the move here
It is already the second short-seller attack on the lithium producer Standard Lithium from Arkansas. This time the disturbing fire comes from the old acquaintance Hindenburg Research. The reporters, specializing in sales studies, have zeroed in on the prospective lithium producers with an extensive report. Apart from the fact that the accusations are pretty poorly researched, they were again quickly refuted by Standard Lithium.
Analysts have already reacted, and they currently see no reason to deviate from their positive assessment of Standard Lithium (SLI). Dr. Andy Robinson, the operating director of SLI, is very surprised by the accusations but sees no impact on the development of his Company and even calls the action of the short-sellers "bizarre". The cooperation partners Koch Industries and Lanxess immediately renewed their commitment to Standard Lithium. Plans are being continued, some even accelerated, and the first results should follow soon.
Standard Lithium continues to see itself on an excellent path to becoming the first major lithium producer in the USA. The delivery of the coveted battery metal is to be started as early as the end of 2022, and the test operation is running with good results so far. We have targeted the stock many times. In 2021 it was permanently too expensive, now the price has halved in just 3 months. If the support zone at EUR 4.5 to 5.0 holds, it could go back up significantly. SLI is certainly no longer a tenbagger, but a 50% increase is always possible. Speculative!
Power Nickel - The development of high-grade nickel deposits
Lithium-ion battery demand currently consumes 8% of the world's annual nickel production of 2.7 million tons. It is estimated that only 42%, or about 1 million tons, of this nickel, is suitable for battery production because of its purity. Canadian explorer Power Nickel has a flagship project called NISK in Quebec. With mineralization for nickel, copper, cobalt, palladium and platinum, NISK slays almost all the critical future metals in one property. That puts it in a prime position to supply the growing North American market for lithium-ion batteries with high-grade nickel.
Power Nickel evolved from the predecessor company, Chilean Metals. Today, the new Company has a mining investment portfolio with an 80% interest in Consolidation Gold & Copper. Consolidation Gold & Copper, in turn, owns a 100% interest in the Golden Ivan project in British Columbia's Golden Triangle.
In addition, the Company is also well represented with concession rights in Chile. They include Zulema, a property covering approximately 4,300 hectares in the Atacama Mineral Belt, as well as Negro and Hornitos, two properties covering about 9,000 hectares in the Atacama Province in Region 3 of Chile, and Tierra de Oro, a property covering approximately 5,667 hectares located in Chile's prolific iron oxide-copper-gold belt.
The Company plans to focus on battery raw materials in the future. According to a 2021 study by the Nickel Institute, nickel's share of modern batteries will develop from about 39% to 58% in 2025. Even though nickel is not always in the name, it helps reduce greenhouse gas emissions in many battery technologies, so the fundamental goal of producing clean energy solutions is much closer with the use of nickel.
Currently, demand already exceeds existing supply, with the price of nickel exploding 27% in the last 12 months to USD 23,500 per ton. With its NISK project, Power Nickel is well-positioned to supply high-quality nickel to battery producers and support the development of next-generation electrical technologies. The Power Nickel share has not yet been discovered and can be purchased for around CAD 0.19 in Canada or with a limit in Berlin. You should take a closer look!
Varta - The commitment in the field of e-mobility is growing
It has become quiet around the Varta share. In our last reports, we had repeatedly identified the zone of EUR 110 to 140 as a trading range. With the sell-off at the beginning of the year, the share price went down to EUR 86.70. So far, the share price has only recovered a meager 7% from this decline, and the technical pressure remains.
Meanwhile, Varta is taking the right operational path and strengthening its commitment in the field of e-mobility. To this end, a new subsidiary was recently founded, whose business purpose is to invest in e-mobility companies. At the expanded main plant in Ellwangen, the Company is working very intensively on the "super battery", which can be charged quickly and has a corresponding range. With the so-called V4Drive battery, Varta produces an ultra-high performance car battery that can be charged within a few minutes. However, Varta has not yet shown much of its cards here.
From a chart perspective, the stock first has to climb back up to the EUR 110 mark, and then it should make faster progress. Since the share is analytically not cheap with a P/S of 3.8, we do not expect a tenbagger at this point, but rather a moderate increase. Nevertheless, Varta sits in the middle of the storm of developing a super battery, which can produce surprising mega news at any time! On March 31, investors should learn more about the 2021 fiscal year - we are not euphoric for this date.
The battery market is under full steam. According to lawmakers, things have to move quickly so that the topic of climate protection finally delivers tangible progress. Many companies are researching and developing, but some simply supply the raw materials! Varta and Standard Lithium are very well positioned. The newcomer Power Nickel can surprise its investors with corresponding progress in the current year.
Conflict of interest
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