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Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Dr. Thomas Gutschlag
CEO | Deutsche Rohstoff AG
Q7, 24, 68161 Mannheim (D)

info@rohstoff.de

+49 621 490 817 0

Interview Deutsche Rohstoff AG: "We can imagine additional investments in the field of electromobility."


Steve Cope, President, CEO and Director, Silver Viper

Steve Cope
President, CEO and Director | Silver Viper
1055 W Hastings St Suite 1130, V6E 2E9 Vancouver (CAN)

info@silverviperminerals.com

+1-604-687-8566

Interview with Silver Viper: Future price drivers and takeover fantasy


Karim Nanji, CEO, Marble Financial

Karim Nanji
CEO | Marble Financial
1200-1166 Alberni Street, V6E 3Z3 Vancouver (CAN)

info@marblefinancial.ca

+1-604-336-0185

Interview with Marble Financial: Fintech innovator plans expansion into the US


06. April 2021 | 07:24 CET

BYD, Silkroad Nickel, Nornickel: Who will profit from the electric boom?

  • Nickel
Photo credits: thoughtco.com

Visionaries often stand alone at the beginning of their journey. When Tesla invited German journalists to test drives sometime around 2011, the "electric car" project was still a vision of the future. But already after this press event, something had changed in the public's consciousness. The incredible acceleration of the first Tesla Roadster put a smile on the faces of all test drivers. Even the biggest doubters were at least appeased and interested in what was still to come from Tesla. The rest is history. Today, companies like Volkswagen and Daimler are also emulating Elon Musk's visionaries. But for electromobility to become mainstream, it depends not only on innovative manufacturers of electric cars but also on the supply of raw materials. We present three companies.

time to read: 2 minutes by Nico Popp


 

Author

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


BYD: Why the share is no longer under power

Like Tesla, Chinese automaker BYD is an electric car pioneer. Around ten years ago, the Company focused on rechargeable batteries and later developed small vehicles, scooters and buses in cooperation with other companies. Today, BYD is considered a company that covers large parts of the value chain. In addition to buses, the car brand also offers taxis, an SUV and a sleek sedan. The batteries continue to come from BYD's production - and the Company has secured the raw materials for them all over the world for years.

While the supply of critical battery metals such as lithium, cobalt and nickel is only gradually being recognized in this country as a prerequisite for the mobility revolution, the Chinese have been taking a very strategic approach for many years to securing deposits. As early as 2016, the country launched an electric offensive and primarily addressed local public transport. As a result, the Chinese auto industry established contacts with suppliers early on and now has an advantage. BYD's stock has lost some ground in recent months. But after the electric hype of the past year, this is no wonder. The Company is well positioned and also wants to strike in Germany in 2021.

Silkroad Nickel: Profitable producer with good connections to China

When it comes to the sought-after strategic metals nickel and cobalt, the Indonesian Company Silkroad Nickel is a good address. Silkroad Nickel already has purchase contracts with Chinese industrial conglomerates. Silkroad Nickel supplies up to 900,000 tons of nickel ore annually to the two Chinese companies Tsingshan Holding Group and Hua Yue Nickel Cobalt. Indonesia has always been a sought-after producer of industrial metals, with 27% of the world's nickel supply coming from the country. A few years ago, the country decided that raw materials would have to be processed to generate more added value within the country. Silkroad Nickel has invested in logistics and has taken a share in cargo ships to ship its products to customers.

In the coming months and years, Silkroad intends to continue this strategy. As a next step, the Company wants to invest in the production of laterite ore. The material is a prerequisite for producing stainless steel and can also be a primary material for battery production. Ganfeng Lithium, the world's largest lithium compounds producer, wants to invest USD 30 million in Silkroad Nickel through a convertible bond to implement the plans. Due diligence is currently underway. As demand for nickel products is expected to rise sharply in the next few years due to the electrification of mobility, Silkroad Nickel could benefit as a producer with low costs and good connections to China.

Nornickel with numerous setbacks

The Russian Company Nornickel is also likely to benefit from the major trend. Although the name says it all at Nornickel, nickel is only the Company's second most important revenue source, accounting for 25% of sales. With 37%, palladium is the most important guarantor of sales. Copper is the third pillar, accounting for around 20% of sales. In 2020, an environmental scandal weighed on Nornickel's share price: large quantities of diesel leaked at a subsidiary.

In response to the wave of anger and Moscow's threats, Nornickel now wants to become greener and focus on new technologies. It is no secret that there is no way around sustainable production of industrial metals in the industry. Even smaller producers like Silkroad Nickel are aware of this. Nornickel, however, recently experienced another setback: two mines suffered water intrusion. The share is a typical cyclical stock and is also too big for surprises.


Author

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



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

31. March 2021 | 09:57 CET | by Stefan Feulner

BYD, Silkroad Nickel, NIO - Elon Musk: "mine more nickel!"

  • Nickel

As electromobility emerges, global demand for certain metals will increase sharply in the coming years. The metals lithium, cobalt and nickel, are crucial for the production of lithium-ion batteries. Nickel, not lithium, takes the rank as the key metal, especially since an increased nickel content dramatically increases the efficiency of the batteries. The Tesla founder already addressed mining companies years ago with an urgent appeal.

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