27. October 2021 | 13:05 CET
BYD, Manganese X Energy, Sixt - Do it again, Elon!
Tesla parks in the exclusive club of trillion-dollar companies, the share price of the pioneer of electric automobility exceeded the mark of USD 1000 for the first time. Congratulations, Elon Musk! Once again, the serial founder demonstrated foresight and was miles ahead of the competition. Musk also takes a pioneering role in the sourcing of materials for his cutting-edge technologies. He openly advocated replacing the controversial metal cobalt with manganese - a clear sign of the growing industry. Here, too, as with other materials, there is already an extreme shortage.
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ISIN: BYD CO. LTD H YC 1 | CNE100000296 , MANGANESE X ENERGY | CA5626781028 , SIXT SE ST O.N. | DE0007231326
Manganese X Energy - Alone in the field
With lithium, cobalt and nickel, investors are familiar with the problem of rising demand and tight supply, which is why prices like Standard Lithium or RockTech Lithium shot into orbit. But rarely has anyone paid attention to the importance of the silvery-white, hard, very brittle transition metal that resembles iron in some properties. Yet manganese is a key element in the manufacture of lithium-ion batteries, which score points for their excellent storage capacity as well as being safe and affordable.
For electric vehicles, nickel-metal hydride (NiMH) batteries and lithium-ion (Li-ion) batteries are at the heart of the future global power supply. Enormous demand for nickel-manganese-lithium-ion battery cells is also predicted for consumer electronics, electric and hybrid vehicles, and battery systems for storing electricity generated from renewable sources.
Manganese is coming, Joe Biden will be reassured, not mainly from China this time, but 80% from South Africa. Nevertheless, the US president issued an executive order, America's Supply Chains, dated Feb. 24, 2021, requiring all North American supply chains to be secured for all materials of strategic importance, such as manganese.
Manganese X Energy comes in here, as the publicly-traded company says it owns the only North American deposit from which manganese is extracted. Located in New Brunswick, just 12km from the US border, the Battery Hill concession is set to become the first domestic supplier to the North American battery market for electric and hybrid vehicles. The property consists of 55 claims spread over 1228 hectares and includes all or parts of 5 zones of manganese/iron deposits: Iron Ore Hill, Moody Hill, Sharpe Farm, Wakefield and Maple Hill. From previous work, ribbon ore formations are suspected, which combined could contain the largest source of manganese in North America at approximately 194 million tons.
In addition to the unique Battery Hill project, the Canadians also have a graphite property and the Peter Lake nickel-cobalt project. The subsidiary Disruptive Battery is another asset in Manganese X Energy's portfolio that is not part of the core business. Its mission is to develop a heating, ventilation, air cooling purification system for cleaner and healthier air to reduce COVID-19 and other pollutants on surfaces and in the air.
The Company is worth a closer look simply because of its unique selling point as North America's only manganese producer. The market capitalization of the stock is EUR 26.81 million. On the home market of Toronto, one can currently observe increased interest with rising quotes.
BYD - Persistent rumors
Chinese media chirped the rumor that no less than Tesla wants to use blade batteries with lithium iron phosphate from the Chinese industry competitor BYD. According to this, the batteries are to be installed in the standard variants of the Model 3 and Model Y. A possible launch is reported to occur as early as the second quarter of next year. However, this rumor has not yet been confirmed by the Company.
In contrast, the long-planned IPO of BYD's subsidiary BYD Semiconductor has been confirmed and approved. The electric vehicle company backed by Warren Buffett has now received the Hong Kong Stock Exchange approval to spin off its semiconductor division in Shenzhen on the Chinese mainland. The IPO of the chip segment is expected to raise about USD 420 million. The plan is to issue 50 million shares. In addition to BYD, the anchor investors include Lenovo, Xiaomi and Sequoia Capital China.
The share of the "Build Your Dream" Company continues to have strong momentum and is rushing from high to high. Investors who are already invested in the stock should gradually tighten their stop.
Sixt - Clever move
The share of the car rental company Sixt has similarly strong momentum. Driven by positive analyst opinions, Sixt VZ continues to head north. In addition to Hauck & Aufhäuser, which raised the price target from EUR 150 to EUR 170, Warburg Research also expressed optimism for further development. The analysis house also left its rating at "buy", the target was increased from EUR 148 to EUR 162.
Price support also comes from the Pullach-based company having added an e-vehicle option to its Sixt Ride service. Now there is also the possibility to choose electric and hybrid vehicles.
Under Sixt Ride, the Isar Valley-based car rental company has built up a cab, limousine, and ride services network. Customers can be picked up at short notice or book transfers in advance as part of the service.
There is an extreme shortage of raw materials due to the expansion of electromobility. In addition to lithium, manganese, which is essential for batteries, is also scarce. Manganese X Energy is the only supplier in North America and has a unique selling point. BYD and Sixt are still promising despite the share price increases that have already taken place.