Close menu




April 14th, 2021 | 08:18 CEST

BYD, Rock Tech Lithium, Varta: The mobility revolution starts now

  • Lithium
Photo credits: pixabay.com

Nowadays, when major automakers run commercials, they are almost always exclusively ads for electric cars. Even if e-cars were a fig leaf for automakers until recently, they are now getting serious. Volkswagen announced an electrification offensive weeks ago and emphasized its intention to invest massively in its supply chains, referring to battery metals and batteries. This commitment is also urgently needed - competitors from the Far East have already come a long way.

time to read: 3 minutes | Author: Nico Popp
ISIN: CNE100000296 , CA77273P2017 , DE000A0TGJ55

Table of contents:


    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

    Full interview

     

    BYD: China feels the breath of the German automotive industry

    One example of this is BYD. Just ten years ago, the Company was known only to those in the know. However, the former battery manufacturer is now also a carmaker and has various models on offer that are also quite well received by customers. BYD's significant advantage is that the Chinese continue to build their batteries and have an excellent connection to China's raw material sources. China has been strategic for decades when it comes to raw materials. Sometimes contracts are concluded with entire countries, massive investments are made in the infrastructure there and billions are made available. As a result, lithium, rare earths and other critical metals are less scarce for Chinese companies than those from the US or Europe.

    But is that enough to be successful? BYD put on a brilliant rally last year - the stock climbed 285%. However, BYD lost more than 30% over three months. One reason for this could be that the market valued BYD and NIO together with Tesla as pioneers of the mobility revolution. In the meantime, it has become clear that the Europeans and Americans can also build e-cars - and secure access to raw materials. Coupled with the know-how and strong brands, companies like BYD remain challengers. The valuation is sometimes too high for that.

    Rock Tech Lithium: Sustainable mining, innovative processing

    The situation is quite different for the German-Canadian lithium Company Rock Tech Lithium. Here, the market does not seem to have realized how great the Vancouver-based Company's potential with German Executive Chairman Dirk Harbecke is (also read the interview). Rock Tech has a promising property in Canada, where the Company plans to mine lithium by 2023. Compared to South American deposits, lithium can be easily removed from the surface thanks to high grades. The lithium, which is mined according to Western environmental standards, is then to be further processed. Rock Tech Lithium has applied for patents for this and expects to gain competitive advantages from its technology.

    Since the production of basic materials for battery production also generates by-products, Rock Tech Lithium is already making every effort to either reduce these products or make them usable in other ways. To this end, Rock Tech Lithium has already concluded an agreement with GP Papenburg. The associated cost advantages are not even considered in the current calculations. Rock Tech estimates to be profitable already at a lithium price of USD 7,500 - currently, lithium trades beyond USD 10,000, with a tendency to increase further. Rock Tech Lithium's stock combines Canadian mining and German engineering. Since the Company wants to implement the final refining steps of lithium in Germany and is already considering locations, Rock Tech Lithium is also closely linked to the success of the German mobility offensive. This investment story hits the spirit of the times, the Company is solid and the share is thus worth an investment.

    Varta: Lots of speculation with little concrete information

    Also closely linked to the German mobility turnaround is the Varta share. The battery specialist is known for its high-performance button cells. For months, there have been rumors that the Company might also be involved in the production of batteries for electric cars. In the meantime, solid plans have emerged. But it is not yet certain what will become of these plans. As it currently stands, Varta only represents the last part of the value chain and produces batteries. The extent to which the Company can score in this area and be competitive is still up in the air.

    The share has also already gained around 460% over three years. Until the stock develops further potential, Varta should put more facts around its battery plans on the table. Indeed, the Rock Tech Lithium share has also risen sharply, but from a lower valuation level. In addition, the Company wants to send product samples to potential customers in April. If the product is right and the first customers bite, the Rock Tech Lithium share should outpace the competition from Varta and BYD on the stock market.


    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

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

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by Stefan Feulner on November 30th, 2022 | 12:01 CET

    Profit now from the energy transition - Rock Tech Lithium, Power Nickel, Shell

    • Mining
    • Lithium
    • Electromobility

    In the past, the internal combustion engine was at the center of the automotive industry, but this is now to change as quickly as possible in order to achieve the specified climate targets. Electrification is the magic word. However, there are high hurdles to overcome in implementing this. For example, it is still not certain whether the battery metals required for this, such as lithium, cobalt, copper and nickel, are available in sufficient quantities. Demand for the critical metals already exceeds supply. The beneficiaries are undoubtedly the producers of the scarce goods.

    Read

    Commented by Nico Popp on November 9th, 2022 | 10:07 CET

    The second Rock Tech Lithium? This is how Mercedes-Benz profits! Jack of all trades Infinity Stone Ventures

    • Mining
    • Lithium

    Anyone who has followed analysts' reports on lithium over the past few years knew that the price of this critical raw material for batteries was about to rise exponentially, reminiscent of the gloomiest forecasts of the pandemic - only extremely positively. Putting the actual price curve next to it shows that lithium has shot up almost vertically in recent years and has already reached the level of the 2030 forecasts. Using three stocks as examples, we outline what this means and how investors can take advantage of this market anomaly.

    Read

    Commented by Stefan Feulner on November 2nd, 2022 | 10:24 CET

    BYD, Infinity Stone Ventures, Rock Tech Lithium - Profiteers of the energy transition

    • Mining
    • Lithium
    • Electromobility
    • Commodities

    Electromobility plays a central role in achieving the ambitious goal of climate neutrality by 2050. Despite current production difficulties in the automotive industry due to the ongoing chip shortage, global supply chain problems and the effects of the war in Ukraine, demand for battery-powered vehicles continues unabated worldwide, as can be seen from the sales figures of electric car manufacturers. However, there is a problem here: the critical raw material lithium is already becoming scarce for the production of electric batteries. As a result, the already high prices are likely to rise further in the long term - to the advantage of the lithium producers.

    Read