BYD, Altech Advanced Materials, JinkoSolar – Better batteries are key to a green revolution

BYD – What is going on with Apple?

China maintains its leading position in the New Energy Vehicles (NEVs) market, achieving an impressive 67% of global sales from January to August 2024. BYD, in particular, has established itself as the frontrunner and recently replaced SAIC as the country's largest carmaker. In addition to the domestic market, BYD is striving for international growth, although the EU is threatening potential punitive tariffs. Safety concerns regarding NEVs also remain a key issue for investors.

BYD's international expansion is dynamic, particularly in Latin America and Southeast Asia. In Brazil and Thailand, the Company recorded significant sales of 45,000 and 20,800 units, respectively, by August 2024. This underlines the attractiveness of these markets, which also offer ideal conditions for further growth due to their low access restrictions. BYD plans to build new production facilities outside China to circumvent potential EU tariffs and to promote the localization of production.

Rumors of an earlier collaboration between Apple and BYD shed an interesting light on future innovation opportunities in the automotive sector. Both companies were reportedly working on an advanced battery system for Apple's now-discontinued Project Titan. This partnership could have long-term implications for BYD's technological expertise, although Apple's focus is now on generative AI. The stock reacted positively to the news and is currently trading at EUR 35.00.

Altech Advanced Materials – Excellently positioned

Altech Advanced Materials has made a real technological breakthrough with the development of the CERENERGY® battery. This battery offers significant advantages over conventional lithium-ion batteries. It is fireproof, has a lifespan of over 15 years, and uses readily available materials, eliminating dependence on critical raw materials such as lithium and cobalt. This innovation aims to meet the growing demand for energy storage, particularly in the context of the integration of renewable energies, while offering significant cost advantages.

Altech currently operates a pilot plant and plans to build a larger plant in Germany, for which investments of EUR 156 million are needed. Despite initially limited production capacities, offtake contracts have already been secured. The total financing of EUR 220 million is to be supported by existing pre-commitments of EUR 60 million. The EBITDA margin is expected to be 47%. On October 1, the prototype of the CERENERGY® battery, "BatteryPack ABS60", was put into operation, showing promising results in tests. North America is already showing strong interest in this technology.

The second pillar of Altech is Silumina Anodes™. The Company has succeeded in coating silicon as an anode material. This gives lithium-ion batteries a higher energy density and faster charging times. They are more environmentally friendly and cost-effective because silicon is available worldwide. The innovative coating also extends the batteries' lifespan, making them particularly attractive for electric vehicles. A pilot plant already exists for this technology as well. As a result, the Company is excellently positioned in two strong growth markets. The share is trading at EUR 2.68, above the price of the current capital increase, which is taking place at EUR 2.40.

JinkoSolar – Ahead of the quarterly figures

The importance of electricity storage for renewable energy producers is growing continuously, while new rumors of tariff adjustments in the US are causing a stir in the industry. In particular, Chinese solar companies such as JinkoSolar are the focus of possible changes to trade conditions. Solar cells and modules from Malaysia could be subject to higher subsidy tariffs, which could significantly impact trade with the US. At the same time, there has been speculation about falling trade barriers, according to Bloomberg. These uncertainties require flexible strategies from producers to adapt to volatile markets.

In Q2, JinkoSolar posted a slight quarter-over-quarter revenue increase but a significant year-over-year decline of 21.6%. Despite a 34.1% increase in module shipments, the Company posted a net loss. The industry is struggling with overcapacity and price volatility, which is depressing profit expectations. For the third quarter, for which figures are expected on October 30, JinkoSolar expects more stable prices but a continued challenging market environment. The quarterly figures will provide a more accurate outlook for the rest of the year.

JinkoSolar relies on technological innovation and international expansion as growth drivers. In particular, N-type TOPCon technology, which offers higher efficiency, could dominate the market by 2025. JinkoSolar is also planning significant investments in new production capacity in Saudi Arabia to meet demand in the Middle East. JinkoSolar's Chinese subsidiary intends to raise capital by selling GDRs on the Frankfurt Stock Exchange, raising approximately EUR 585 million. The share price rose following the Bloomberg report and is currently trading at USD 23.52.

Batteries are key to the green revolution. BYD dominates the electric vehicle market and is targeting further growth with international expansion. Altech Advanced Materials has achieved a breakthrough in safe, long-lasting energy storage with CERENERGY® and has an innovation for e-mobility up its sleeve with Silumina Anodes™. JinkoSolar focuses on innovative technologies and international expansion, although it faces challenges such as trade barriers. All three companies are essential players for a sustainable future with their respective innovations and strategies.