Close menu

May 18th, 2023 | 09:50 CEST

BYD, Plug Power, Altech Advanced Materials: Winners of the energy transition with news

  • Technology
  • renewableenergies
  • climatechange
  • Electromobility
Photo credits: Nordex SE

The energy transition is currently shaking up the world and the stock market. The opportunities for new players and investors are enormous. BYD, for example, aims to take a significant share of the German automotive industry's market. A revolution is brewing in battery technology. Altech Advanced Materials is on its way to being one of the winners of this revolution. The Company's management left no doubts about this during an investor conference this week. The manager exuded confidence. After its consolidation phase, the Altech share could now take off again. Analysts see a price potential of over 300% for Plug Power. But the latest quarterly figures and the looming financing round continue to weigh on the stock.

time to read: 4 minutes | Author: Fabian Lorenz
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , PLUG POWER INC. DL-_01 | US72919P2020 , Altech Advanced Materials AG | DE000A31C3Y4

Table of contents:

    Altech: "Germany is throwing away billions of euros' worth of electricity."

    CEO Uwe Ahrens expressed his conviction at an investor conference in Frankfurt earlier this week that the market potential for Altech Advanced Materials is huge: "The energy transition cannot take place without batteries. In 2021 alone, Germany threw away EUR 2.3 billion worth of electricity because the grids were full. For grid operation, there can be no better battery than ours." The Company is currently developing the CERENERGY® Sodium Chloride Solid State (SCSS) as an alternative to lithium-ion batteries for use as stationary grid storage. The advantages are numerous: the battery technology uses common salt and is free of lithium, cobalt, graphite and copper. All raw materials can be sourced from Europe. Corresponding agreements have already been concluded. The battery has a lifespan of more than 15 years, is fire- and explosion-proof and does not degrade in performance at high or low temperatures.

    Recently, the production of two prototypes of the CERENERGY® 60 kWh (ABS60) battery pack intended for market launch was initiated. The innovative sodium-aluminium oxide solid-state battery prototypes are manufactured at the joint venture partner Fraunhofer IKTS in Hermsdorf. The high-performance battery packs are intended for industrial operation. They are to be used primarily in the areas of energy storage of renewable energies from wind and solar power plants as well as grid storage. In other words, to avoid "throwing away" electricity in Germany. Uwe Ahrens: "All the major utilities are planning battery parks in the gigawatt range." The potential for stationary grid storage is huge: the global market for battery energy storage systems is expected to explode from USD 4.4 billion in 2022 to USD 15.1 billion in 2027 - and the trend is still rising.

    Preparations for mass production in Saxony are underway: The first production line is to have a production capacity of 100 MWh. The feasibility study is to be completed before the end of the current year. The share price has tripled in recent months. After a healthy correction with a drop from EUR 12 to EUR 10, the price seems to be bouncing back. In any case, the presentation at the investor conference was very well attended.

    Plug Power: Over 300% price potential?

    The Plug Power share could soon recover from its lows. At least, this is the opinion of the analysts at Evercore. They believe that the Plug Power share could rise to USD 37. The share is currently trading at around USD 7.60. According to BMO Capital Markets, this level is appropriate. The analysts' target price is USD 7.50.

    The potential of hydrogen is undisputed, and Plug Power is considered a leading pure-play, yet it seems sensible to wait before buying. For one thing, the Company - unlike the other hydrogen specialist, Nel from Norway - needs help to get a grip on its costs. In the first quarter of 2023, the US company significantly increased its turnover from USD 141 million to USD 210 million, but also its losses from USD 156.5 million to USD 206.6 million. This, again, scared off investors and analysts. And Plug Power's sales forecast for the full year 2023 of USD 1.2 billion to USD 1.4 billion was also significantly below expectations. And this brings us to the second good reason to wait and see: the need for capital due to the high losses. Although the Company still has funds of over USD 1 billion at its disposal, the review of financing options was announced with the quarterly figures. Although an equity increase and, thus, a dilution of existing shareholders is to be avoided, debt capital is also unlikely to be cheap in the current environment.

    BYD: Launch in Portugal

    BYD does not seem to have any financing problems at the moment. The Chinese are investing at an astonishing speed. The construction of a new battery or car factory is announced almost weekly. Most recently, the purchase of an industrial site in Shenzhen with a size of more than 522,000 sqm was reported. The purchase price is said to be around USD 5.4 million. Among other things, production facilities for the manufacture of e-cars and energy storage systems are to be built on the site.

    Sales of the vehicles are to increasingly take place outside the home market of China. In the current year, the Chinese company is attacking Europe. In an interview with WirtschaftsWoche, BYD manager Lars Pauly also expressed the goal of becoming the market leader in Germany. The self-confidence is not unfounded. In China, BYD already sells fifteen times more electric cars than Volkswagen.

    BYD is also stepping on the gas in other European countries. In Portugal, the Chinese will in future work together with the largest car dealer on the Iberian peninsula. The Salvador Caetano Group is to set up nationwide sales and customer service for BYD. The all-electric SUV Atto 3 will be sold in Portugal as early as the second quarter of the current year.

    BYD and Altech are on a roll. The correction in the Altech share seems to have already ended, and operationally things are moving forward in leaps and bounds. With BYD, it will be exciting to see how the expansion in Europe works out in the current year. Hopefully, Volkswagen, BMW & Co. will have suitable answers to the self-confident challenger. Plug Power is not lacking in self-confidence, either. In any case, investments will continue unrestrictedly. However, investors currently prefer to watch this from the sidelines.

    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    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

    Related comments:

    Commented by André Will-Laudien on December 4th, 2023 | 07:30 CET

    COP28 Climate Summit in Dubai boosts uranium shares! Cameco, GoviEx Uranium, Siemens Energy and E.ON in focus

    • Mining
    • Uranium
    • nuclear
    • renewableenergies

    With a raised finger, Chancellor Scholz calls for a global shift away from fossil fuels in Dubai. Climate change remains "the great global challenge of our time". He is thus appealing to the almost 200 countries, which are holding energetic consultations until mid-December, to join in the energy transition formulated in Germany. Specifically, he proposed an agreement on two binding targets that are already consensus among the industrialized countries of the G20: One is to triple the expansion of renewable energy, and the other is to double energy efficiency - both by the year 2030. So far, more than 110 countries have agreed to expand green energy production at this rate. However, there is also the opposing party: around 20 countries want to almost triple their investment in nuclear energy. Where are the winners hiding?


    Commented by Juliane Zielonka on December 1st, 2023 | 07:00 CET

    Energy market in transition: RWE, Klimat X and FREYR Battery - Which share offers sustainable price gains?

    • Sustainability
    • climatechange
    • Batteries
    • renewableenergies

    Numerous investment opportunities are emerging in the energy market. Germany's largest electricity producer, RWE, for example, will invest EUR 55 billion in renewable energies and environmentally friendly technologies such as green hydrogen by 2030. Klimat X focuses on CO₂ certificates, allowing renowned companies to become actively involved in environmental protection. It combines ecological initiatives with economic opportunities through the renaturation of forests and mangrove groves in Sierra Leone and Mexico. Companies become tree sponsors while nature does its work. At the same time, FREYR Battery in Norway is automating its production facility and further expanding its central location in the US. Find out how these pioneering developments are shaping the environmentally friendly future of the energy sector.


    Commented by Juliane Zielonka on November 30th, 2023 | 07:00 CET

    Growth Industries in Focus: Investors see potential in Defense Metals, BASF and Volkswagen shares

    • Mining
    • Tungsten
    • RareEarths
    • Electromobility

    Investors are looking for opportunities in growing markets. Looking at industries currently requiring rare earths - such as energy, defense, electromobility, and many more - leads to the mining sector. Someone has to supply the valuable raw materials so these industries can continue growing. Defense Metals' Wicheeda project in Canada shows promising results, particularly the increase to 6.4 million tons with a TREO content of 2.86%. BASF secures EUR 124.3 million in government funding for a green hydrogen plant in Ludwigshafen, planned in collaboration with Siemens Energy. Volkswagen is facing challenges, emphasized by VW board member Thomas Schäfer, who announced tough cuts to maintain competitiveness without closing plants. Volkswagen will have to respond to change with a more agile approach, especially as China advances in electromobility.