CAUTION with Nel ASA! TAILWIND for Standard Lithium and Graphano Energy shares!

Standard Lithium: Electric mobility cannot be stopped

It feels as if the development towards electric mobility is stalling in Germany. But the latest study by PwC shows that lithium, graphite, and batteries are facing a bright future. This is because the global switch to electric vehicles is continuing. According to a recent PwC study, pure battery electric vehicles (BEVs) reached a new record share of around 21% of the global market in the third quarter of 2025. Of a total of 17.4 million new vehicles sold, around 3.6 million were pure electric models. The market is growing particularly strongly in China, where over 2.3 million BEVs were sold. This is a good third more than in the previous year. Demand is also picking up noticeably in Europe. With 607,000 newly registered BEVs, sales increased by more than 25%. Within Europe, Germany ranks first with 133,000 electric vehicles sold.

If this trend continues, the proportion of BEVs on the roads is likely to increase significantly in the coming years. PwC estimates that by 2035, electric vehicles will account for 32% of all registered vehicles in Europe. In China, the figure is expected to be as high as 40%. PwC partner Harald Wimmer emphasizes that electric vehicles are becoming steadily better, more attractive, and more affordable.

Germany shows that the trend is irreversible. Despite debates about the end of combustion engines, sales figures for electric vehicles are rising steadily. Even without new subsidies, demand is growing, driven by technological advances, falling battery costs, and a wider range of models.

The most important component of electric vehicles is likely the battery. This industry remains firmly in Chinese hands. However, the West has woken up and is promoting the industry along the value chain. Lithium companies such as Standard Lithium and Lithium Americas are benefiting from this. However, investors should also look at areas that are not so much in the spotlight. One example is graphite and the publicly traded company Graphano Energy.

Graphano Energy: When will the knot break?

Graphite is often overshadowed by lithium and other minerals, yet no battery works without this critical carbon mineral – whether in electric vehicles, smartphones, or stationary storage devices. At the same time, China maintains a stranglehold on global supply. Around 70% of the world's graphite comes from China. Western industrialized countries are therefore eager to develop alternative sources.

Graphano Energy aims to help establish these alternative supply sources outside China. The Company currently operates three graphite projects in Canada: Black Pearl, Lac Aux Bouleaux, and Standard. All projects are located in Quebec, a region with a long tradition of graphite mining, well-developed infrastructure, and access to renewable energy. Proximity to Northern Graphite's Lac-des-Iles mine also offers opportunities for cost-effective processing – or to be taken over. Graphano's share price has been moving sideways since August, with a brief surge two weeks ago hinting at upward momentum.

Perhaps the latest drill results will support a sustained rise in the share price. Graphano recently published the final results of its September drilling program at the Black Pearl project. The program confirmed extensive near-surface graphite mineralization along several structures, indicating significant deposit potential. Notably, one drill hole returned 4.81% Cg over 12.25 meters, including 6.63% Cg over 7.07 meters, at a depth of just 25 meters. According to CEO Luisa Moreno, the program demonstrates the potential of the entire area and represents an important milestone in the expansion of the resource base.

Black Pearl covers more than 4,000 hectares and lies directly adjacent to the advanced Standard Mine, which already has an indicated resource of 950,000 tonnes at 6.27% Cg. As the mineralization remains open in all directions, Graphano plans to conduct further exploration work to define the full extent of these zones.

https://youtu.be/zENi0CH9ypE?si=OymMeHiLgHsh5itz

Nel ASA: Alarm bells are ringing

And what about problem child Nel ASA? The former hydrogen high-flyer published its quarterly figures yesterday. It speaks for itself that the stock, despite being at a virtual annual low, has not rebounded.

The Norwegian hydrogen specialist's third-quarter 2025 revenue of NOK 303 million was down about 17% from the same period last year (Q3 2024: NOK 366 million). Although operating profit (EBITDA) improved, it remained significantly negative at NOK -37 million (Q3 2024: NOK -90 million). The bottom line was a loss of NOK 85 million. Particularly worrying was the development of order intake, which at NOK 57 million was 64% below the previous year's figure and significantly below quarterly sales. The order backlog decreased by 47% to NOK 984 million.

Although the Company emphasizes its solid liquidity base of NOK 1.8 billion and points to progress in new generations of electrolysers, the continuing slump in new orders raises questions about its future viability. Large orders, in particular, are lacking.

Overall, Nel is struggling with weak order intake, declining sales, and continued negative earnings. In contrast, the market for electric vehicles and batteries is gaining momentum, supported by the latest PwC study. Standard Lithium is interesting, but has already performed very well. Graphano Energy is an exciting newcomer.