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November 9th, 2023 | 07:20 CET

BMW celebrates battery technology, BYD is coming to Europe, and Power Nickel offers a 100% opportunity!

  • Mining
  • Nickel
  • Electromobility
  • BatteryMetals
  • Technology
Photo credits: BMW Group

News from the world of electromobility: BYD is putting pressure on European car manufacturers and wants to start production in Europe soon. But where? Saarlouis seems to be losing the competition for the first Chinese location in Europe. There are new indications of this. BMW, on the other hand, is celebrating its new battery technology, aiming to achieve more range than Tesla while significantly reducing costs. But what do analysts have to say about the Munich-based automotive group's shares? Experts see over 100% upside potential for Power Nickel shares. The Company is developing a high-grade nickel project in Canada and plans to produce it in a climate-friendly way. Will the new resource estimate boost the share price?

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: BAY.MOTOREN WERKE AG ST | DE0005190003 , BAY.MOTOREN WERKE VZO | DE0005190037 , BYD CO. LTD H YC 1 | CNE100000296 , Power Nickel Inc. | CA7393011092

Table of contents:


    Jerre Foo, Corporate Development Executive, Silkroad Nickel
    "[...] China has become the manufacturing capital of the World, and because of its infrastructure, expertise and capabilities, Silkroad Nickel has strategically positioned itself to partner with Chinese companies in the Stainless Steel and EV industries [...]" Jerre Foo, Corporate Development Executive, Silkroad Nickel

    Full interview

     

    Power Nickel: More than 100% share price potential?

    Regardless of which car and battery manufacturers will ultimately prevail in the current upheaval in the industry, everyone needs raw materials. Power Nickel benefits from this and has projects for various battery metals. The exploration company's most important project is the development of a nickel mine in Canada, putting the Company in the immediate vicinity of the US. And there, as is well known, the development of a strong renewable energy sector is being massively promoted by the state. And not only that, Power Nickel aims to operate the nickel mine in a climate-neutral way. In the context of ESG issues, this makes the Company even more attractive to customers.

    It is, therefore, not surprising that the analysts at Fundamental Research see considerable upside potential in the Power Nickel share. The analysts emphasize that companies focusing on metals for electromobility remain attractive. Battery and e-car manufacturers are looking for stable and long-term sources of supply. The drilling program in 2022 identified several high-grade zones. A new resource estimate is to be published this year. Another kicker for the share is the spin-off of peripheral activities. Power Nickel plans to spin off its four early-stage exploration projects (three in Chile and one in Canada) together with its 3% license interest in a copper-molybdenum development project from Teck Resources into a newly listed company. Power Nickel shareholders will receive free shares in this new company. The analysts, therefore, see the fair value of the Power Nickel share at CAD 0.48. The stock is currently trading at CAD 0.22.

    BMW: Soon to have more range than Tesla?

    The BMW share is currently viewed with some skepticism. According to marketscreener.com, out of 21 analysts, only 8 recommend buying the shares of the Munich-based carmaker. Yet operationally, the Company is performing well. BMW was also able to increase sales and operating profit in the third quarter of 2023. On the other hand, its strategy of having multiple types of powertrains is facing criticism.

    But BMW itself is brimming with self-confidence, celebrating its battery technology and seeing itself overtake industry leader Tesla. According to Automotive News Europe, BMW Board Member for Production, Milan Nedeljkovic, explained that it will be up to Tesla to "close the gap to us" in the future. The optimism is based on the new cells from battery partner Eve Energy. These are said to store 46% more energy than Tesla's 4680 cells. BMW wants to offer vehicles with a range of 800 km in the future. At the same time, battery costs are to be reduced by 50%.

    BYD: Will Hungary win the race?

    And what is new from BYD? Plans for the first European factory are intensifying. A few months ago, there were rumors that the Chinese could take over the German site in Saarlouis from Ford, however this no longer seems to be the case. Instead, BYD is said to be moving to Hungary. According to the Frankfurter Allgemeine Sonntagszeitung, the Eastern European country has been chosen as the location. A six-figure number of electric cars are to roll off the production line there in a few years. BYD is expected to make an official decision by the end of the year. Another indication that the speculation could be true is a trip by Hungarian Prime Minister Viktor Orbán to China a few weeks ago. He also visited the BYD headquarters in Shenzhen.


    Regardless of where in Europe BYD will build its first factory, competition will increase for local car manufacturers. In its home market of China, BYD has already overtaken Volkswagen as the industry leader this year. It will be interesting to see when BYD reports sales figures for Europe. Power Nickel has little to worry about in terms of sales. But of course, the project must first be developed. But the Company is making good progress, and new resource estimates should boost the share price. BMW is anything but highly valued. However, investors do not seem convinced by the Munich-based company's strategy in the electric age.


    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.

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    Der Autor

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author



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