40% SHARE PRICE EXPLOSION! Commodity war drives Standard Lithium and BMW partner European Lithium! News from Evotec!

European Lithium: Talks with defense companies underway

European Lithium has published the results of the preliminary economic assessment (PEA) for the Tanbreez rare earth project in Greenland. The deposit in southern Greenland is one of the world's largest known rare earth deposits and is estimated to contain 4.7 billion tons of kakortokite. Kakortokite is a rare, alkaline, igneous rock classified as a nepheline syenite.

In the announcement, European Lithium refers to a robust resource base of 45 Mt @ 0.40% total rare earth oxide (TREO) with 27% heavy rare earth elements (HREE). The proportion of heavy elements is unusually high compared to most rare earth projects worldwide. The location on the fjord with year-round deep-water access contributes to it being one of the few west-facing HREE sources. Tanbreez is, therefore, positioning itself as a supply partner for the US and Europe. Encouraging discussions are underway with American and European defense companies and industrial groups.

And then there is the lithium business in Austria. BMW has already secured the raw material for batteries for its "New Class." The lithium will be mined from 2026 and processed into battery-grade lithium hydroxide in Saudi Arabia, where energy costs are 80% lower. A local company has already been brought on board to build a refinery with an annual production capacity of up to 20,000 tons of lithium hydroxide.

European Lithium's market capitalization is less than EUR 50 million. One of the projects alone should already be worth more than that. It is therefore not surprising that First Berlin analysts recommend European Lithium shares as a "Buy", with a price target of EUR 0.14. The security is currently trading at only EUR 0.031. Accordingly, analysts believe that a multiple increase is possible.

Standard Lithium: 40% in one day

Is European Lithium about to experience a price explosion like Standard Lithium? The US company's share price made a spectacular comeback yesterday, with a jump of around 40%. Previously, things had gone quiet around the former lithium high-flyer. However, the latest news is significant: The Smackover Lithium joint venture, founded by Standard Lithium and Norwegian energy company Equinor, has reached an important political milestone. The South West Arkansas (SWA) lithium project has been selected by the US government as one of the first "critical mineral projects" under the new Executive Order 14241. The order, issued on March 20, 2025, aims to accelerate domestic raw material production, particularly of strategic minerals such as lithium.

The selection brings concrete benefits: The SWA project has been included in the Federal Permitting Dashboard as the only lithium project in the US to date. This will make the permitting process more transparent and efficient – a key lever for bringing projects of this scale to fruition more quickly. Standard Lithium CEO David Park emphasized the strategic importance of the project for national security, economic independence from China, and the creation of high-quality jobs. The political support not only shortens the time to production but also increases the visibility and credibility of the project on the capital market.

Evotec: Will this strategy bring about a turnaround?

Evotec's share price has risen by 14% since the announcement of the new strategy. Commenting on the plans, which had been eagerly awaited for months, Evotec CEO Dr. Christian Wojczewski said: "Evotec's ambitious realignment paves the way for sustainable, profitable, and long-term growth. We are focusing on Evotec's core competencies: a leading role in technology and science, enabling us to achieve maximum impact for customers and patients. By combining state-of-the-art technology platforms, pioneering science, and AI-driven innovation, we are accelerating the process from concept to cure together with our partners."

In the future, Evotec intends to focus on two pillars: Drug discovery & preclinical development (Shared R&D) and its subsidiary Just – Evotec Biologics. To this end, the project portfolio will be streamlined by around 30%, and investments will be sold.

By 2028, Evotec aims to grow at an average rate of 8 to 12% per year, outpacing the overall market. At the same time, massive cost savings are to be achieved. By focusing even more on automation, improving its local presence, optimizing manufacturing costs, and reducing administrative expenses, the Company aims to save more than EUR 50 million by 2028. The previous cost-saving program, "Priority Reset," already targeted savings of EUR 40 million. In 2028, the adjusted consolidated EBITDA margin is expected to exceed 20%.

The battle for rare earths and critical raw materials such as lithium continues to intensify. Standard Lithium and European Lithium should benefit from this. However, European Lithium is better diversified in terms of raw materials and regions and currently appears to be more attractively valued. It remains to be seen whether the new strategy will bring about a turnaround at Evotec. The initial market reaction was cautiously optimistic.