January 5th, 2024 | 08:45 CET
Altech Advanced Materials, BYD, and Rheinmetall - Growth drivers: innovation, market power and strong cash flow
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Silumina Anodes®: Altech Advanced Materials AG exceeds expectations with a 30% performance increase in the feasibility study
Economies worldwide are vying for low-carbon energy sources to continue competing internationally. German industries are relocating their production abroad, but the pioneering spirit in the land of poets and thinkers seems unbroken. The amount of raw materials for the energy transition is limited. Solutions are needed to make existing renewable energy sources more efficient and durable.
This is precisely where the German company Altech Advanced Materials (ISIN DE000A31C3Z1) comes in. Altech stands for innovative batteries and battery materials. Its focus is on ceramic materials for battery production, their research and serial production for energy efficiency in electric vehicles and stationary energy storage in households and commercial operations. The Company works together with a special unit of the renowned Fraunhofer Institute and has two business areas:
- Ceramic solid-state batteries as stationary energy storage: Their product, Cerenergy®, presents an innovative ceramic solid-state battery based on common salt. The battery serves as a cost-effective and environmentally friendly temporary energy storage system for renewable energy, grid stability, peak load capping and industrial and charging infrastructure. Thanks to its recyclability, the absence of critical substances and its non-flammability, it represents a promising solution for sustainable energy storage.
- Coated anode material for more performance and longevity in electromobility: The innovative Silumina Anodes® coating technology enables optimized anode performance, resulting in an approximately 30% increase in the efficiency and range of electric vehicles.
The application is uncomplicated thanks to the so-called "drop-in technology," enabling seamless replacement with existing anodes. In addition, the advanced coating technology enables the effective use of silicon. In this way, Altech Advanced Materials handles the highly sought-after raw materials with care.
Altech Advanced Materials now announces the results of the final feasibility study for the planned Silumina Anodes® plant in Schwarze Pumpe, Brandenburg. In collaboration with HATCH Küttner GmbH and ARIKON Infrastruktur GmbH, the study shows significant technical improvements and an impressive EBITDA potential of approximately EUR 105 million per year.
The Silumina Anodes® plant focuses on battery materials based on common salt and silicon and is designed for a production capacity of 8,000 tons per year. It produces performance-enhancing anode composite material that enables the production of 120 GWh of high-performance lithium-ion batteries. The study has a net present value (NPV) of EUR 684 million and an internal rate of return (IRR) of 34%.
The promising results of the Feasibility study position Altech Advanced Materials AG as a pioneer in the field of sustainable battery technologies and electromobility. This is an exciting opportunity for investors to be involved right from the start. Further details on the study are available on the Company's website.
BYD overtakes Tesla to become the leader in the electric vehicle market
In Q4/2023, the Chinese company BYD surprised the industry by overtaking Tesla as the leading manufacturer of electric vehicles in terms of sales figures. BYD delivered 526,409 vehicles in this period, while Tesla delivered 484,507, falling short of Elon Musk's lofty target of 2 million cars. Tesla's total deliveries in 2023 amounted to 1.8 million vehicles, while BYD delivered a total of 3.02 million vehicles, including around 1.4 million plug-in hybrid electric vehicles.
BYD has recognized that car buyers increasingly seek affordable models in a crisis-ridden economy. Competition between BYD and Tesla is generally leading to increased competition and price wars, putting both companies under pressure to defend their market shares.
BYD's success shows that a company is willing to sacrifice margins in order to gain market share and strengthen its position in the electric vehicle market. With the future Altech Advanced Materials technology, such vehicles can be produced even more durable and thus even more in the interests of the customer.
Rheinmetall wins EUR 328 million defense contract and also expands e-mobility business unit
Rheinmetall secures a significant order in the field of e-mobility by manufacturing plain bearings for planetary gear for an electric vehicle. A planetary gear is a type of gearbox in which the input shaft and the output shaft are aligned in a straight line. This transmission design aims to transmit maximum torque while saving space.
The renowned international automotive customer, which specializes in electromobility, is planning a gradual expansion of its e-mobility strategy. Which one is not specified. However, the Japanese car manufacturer Toyota already installed this technology in its "Prius" cars in the 1990s.
Rheinmetall's plain bearings are characterized by exceptional wear resistance, damping and sliding properties. This long-term order until 2027 promises an annual order value in the high six-figure euro range.Rheinmetall sees this success as the first step in a long-term cooperation with further orders in the field of e-mobility.
Something is also happening in the well-known armaments division. The Romanian Ministry of Defence has awarded Rheinmetall a EUR 328 million contract for the modernization of four Oerlikon GDF 103 anti-aircraft artillery systems, to be delivered within two to three years. The contract also includes training, spare parts and services.
This major order consolidates Rheinmetall's position as a leading systems supplier for ground-based air defense and strengthens the defense capability of the EU and NATO on the eastern flank.
Altech Advanced Materials published the results of its feasibility study for the planned Silumina Anodes® plant in Schwarze Pumpe, Brandenburg. The study shows a 30% increase in the performance of anode technology in electromobility and confirms Altech's position as a pioneer in sustainable battery technologies. The plant enables the production of performance-enhancing anode material for high-performance lithium-ion batteries with raw materials from the EU. Vehicle manufacturer BYD surpasses Tesla as the leading electric vehicle manufacturer by sales figures in Q4/23. BYD delivers 526,409 vehicles, while Tesla delivers 484,507 units. Competition between companies leads to increased price wars and affordable models in a crisis-ridden economy. Rheinmetall secures an e-mobility order for a renowned international vehicle manufacturer by producing plain bearings for electric vehicle planetary gearboxes. The long-term order until 2027 strengthens Rheinmetall's position in the e-mobility market. In the Armaments division, the EUR 328 million order from Romania rounds off the cash flow stream. Altech has the power to influence the future of electromobility strongly with its innovation. Perhaps BYD and Rheinmetall will soon be partners. Investors should take a closer look at the shares and choose wisely.
Conflict of interest
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