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December 13th, 2021 | 12:12 CET

BYD, Manganese X Energy, Daimler - Enormous demand for Tesla, BYD and NIO

  • Electromobility
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Temporary inflation is history and has been laid to rest by FED chief Jerome Powell. During his appearance before the US Congress last week, he said the time had now come to remove the word "temporary" from the vocabulary of the monetary guardians. With inflation at 6.8% in November and the sharpest rise in US inflation in nearly 40 years, even the greatest optimist assumes a permanent state of rising prices. Among the culprits are commodities such as copper. These are likely to see a further increase due to the energy transition.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , MANGANESE X ENERGY | CA5626783008 , DAIMLER AG NA O.N. | DE0007100000

Table of contents:

    Everything is getting more scarce

    Months ago, we were already more than skeptical concerning a short, crisp increase in inflation, which is expected to cool down again from spring 2022. Corona or not. Supply chain disruptions are a major impediment to the recovery of the global economy. Shortages, from raw materials to semiconductors and the end products that depend on them are becoming more dramatic rather than recovering. Companies are sitting on full order books but are getting the raw materials they need at horrendous prices, if at all, which in turn puts pressure on margins. In addition, the relationship between China and the rest of the world remains critical. In the case of essential raw materials for achieving climate targets, such as lithium, rare earths and manganese, dependence on the Middle Kingdom is overwhelming at up to 80%.

    The West is challenged

    It takes up to 10 years to build up new production facilities. The western industrial nations are challenged to cushion the dependence on China, at least in the medium term. As early as February of this year, the US government issued an order to secure all North American supply chains for all materials of strategic importance. That includes the transition metal manganese, which is needed as a key element in producing lithium-ion batteries. The price of manganese flake has exploded in the last twelve months and is the highest since 2010.

    Only player in North America

    Demand is rising, but supply is almost non-existent. Manganese X Energy wants to fill this white space and become the only North American manganese producer. In New Brunswick, about 10km from the US border, lies the 100% owned 1,407 hectare Battery Hill concession area. From historical work, it is believed to contain ribbon ore formations that could collectively contain the largest source of manganese in North America at approximately 194 million tonnes.

    The initial mineral resource estimate for the Battery Hill project was released in July and indicates 34.86 million tonnes of proven and indicated mineral resources at a manganese grade of 6.42% and 25.91 million tonnes of suspected mineral resources with a manganese grade of 6.66%. By defining the inventory of Proven and Indicated Mineral Resources, the Canadians aim to move quickly towards an initial economic calculation in 2022. Following the PEA, which is expected to occur in the first half of 2022, management intends to move promptly to prepare a pre-feasibility study, which will include the creation of reserves. Until then, additional drilling programs will be targeted.

    In addition to the unique Battery Hill project, the Canadians also have a graphite property and the Peter Lake nickel-cobalt project. With the subsidiary Disruptive Battery, there is another asset in the portfolio of Manganese X Energy, not assigned to the core business. The Company has excellent development potential due to its unique selling proposition as the only player in North America.

    On to Scotland

    The Chinese technology company BYD is best known for its electric cars. Alongside this, the global delivery of electric buses, which are also based on blade battery technology, continues apace. In addition to orders from the USA and Spain, further buses were sold in cooperation with the British bus manufacturer Alexander Dennis Limited, this time to Scotland.

    12 Enviro400EV battery-electric double-deckers were delivered to Dundee bus operator Xplore Dundee. The vehicles are 10.8m long, and their range is estimated at around 257km. The British government is giving enormous support to transform public transport to buses with alternative drive systems and plans to put 4,000 new battery and hydrogen buses built in the UK on British roads in the near future.

    Successful spin-off

    At the end of last week, some Daimler investors may have flinched briefly, as the share price was down around 15% on the previous day. However, the decisive factor was not a price drop but the successful spin-off of the Daimler Truck subsidiary. Daimler shareholders received one share of Daimler Truck for two Daimler shares. The parent company remains a major shareholder after the IPO, with a quota of 35%.

    Analysts at Canadian investment bank RBC reiterated their Outperform rating following the spin-off of the truck division. The previous price target was EUR 108.

    Inflation continues to rise to record levels, and the word "temporary" is banished from the FED's vocabulary. Due to the energy transition, the demand for the required raw materials is enormous. Manganese X Energy should benefit from the development as the only future manganese producer. The demand for electric vehicles should also continue to provide BYD and Daimler with full order books.

    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author

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