Close menu

July 5th, 2022 | 11:25 CEST

Climate shares: BASF, Erin Ventures, Nordex, BYD - The stuff dreams are made of!

  • boron
  • Lithium
  • Electromobility
Photo credits:

Germany and Europe will have to dress warmly for the coming winter because a stable energy supply seems to be more than endangered from today's perspective. Private households are probably largely at the mercy of this scenario, while the major industrial locations have been working on alternative backup concepts for several months. Battery technology should also be further promoted for local energy storage. An important material for the accumulators is boron, similarly necessary as lithium, but apparently, only few know this. We highlight some interesting aspects for investors.

time to read: 5 minutes | Author: André Will-Laudien
ISIN: BASF SE NA O.N. | DE000BASF111 , ERIN VENTURES INC | CA29570H2000 , NORDEX SE O.N. | DE000A0D6554 , BYD CO. LTD H YC 1 | CNE100000296

Table of contents:

    Tim Daniels, CEO, Erin Ventures
    "[...] Boron is one of the most versatile elements in the whole world! Everyone reading this text regularly uses hundreds of products that depend on boron. [...]" Tim Daniels, CEO, Erin Ventures

    Full interview


    Erin Ventures - Boron, an important battery element often forgotten

    Boron is one of the most versatile elements in the entire world, bearing the atomic number 5 with the abbreviation "B" in the periodic table. Hundreds of products we encounter in daily life all contain boron. Prominent examples are glass, ceramics, house insulation material, fiber optic cables, smartphones, computer screens, and solar panels on the roof.

    Other important applications include electromobility and fuel cells, where boron plays just as valuable a role as the generally pursued lithium. In purely quantitative terms, batteries for electric cars contain almost as much boron as lithium. More than six tons of boron are found in large wind turbines, and in the nuclear industry boron is used as radiation protection. The element thus occupies a decisive place in decarbonization.

    The raw material is mainly supplied by the two large boron producers, Eti Maden in Turkey and Rio Tinto in California; the remaining suppliers are highly fragmented and relatively small worldwide. These two mining giants have dominated the market for years, but now a new property is opening up in Serbia - the pre-feasibility study (PEA) has just been published. It calculates that demand will soon increase tenfold. For the Canadian explorer Erin Ventures, the cards could not be better because, with an investment of USD 80 million, the net present value for the planned mine is USD 525 million.

    There are few peer companies involved in lithium and boron projects. That is why research firm MMG Capital conducted a valuation of Erin Ventures. Including all parameters for a 3-year mine build-up and a partial sale of 50% to joint venture partner Temas, the valuation target is CAD 122.3. The current number of shares at 151.6 million provides a calculated fair value of CAD 0.79 per share. At the current share price of CAD 0.09, a near tenfold according to the latest MMG analysis. Since Europe, in particular, is the world's most committed to climate protection, this boron project could play a vital role for the European industry. Collect a few pieces for the portfolio at the favorable price of CAD 0.09.

    Further details on Erin Ventures you can find in our lasted interview with CEO Tim Daniels: Link to Interview

    BASF - The chemical giant switches to heat pumps

    Ludwigshafen-based chemical giant BASF is one of the largest gas consumers in Germany, and shortages may still lead to operational restrictions if it is not possible to switch in time. However, further thought is now being given to energy generation throughout the BASF Group. Together with MAN, BASF plans to install a huge heat pump at the chemical company's main plant in Ludwigshafen. The plant will generate steam using waste heat from the cooling water system.

    With the heat pump, BASF wants to generate up to 150 metric tons of steam per hour for Europe's largest chemical site. The whole thing is still just an idea, and whether the plant can be built in the form envisaged is something that MAN Energy Solutions and BASF intend to clarify in a feasibility study by the end of the year. Steam is essential for chemical industry production; BASF puts Ludwigshafen's demand at 20 million metric tons a year.

    Two birds with one stone: BASF still relies on gas to heat the necessary water for about half of its production capacity. The heat pump could now cover part of this great demand, gas consumption would be reduced, and CO2 emissions could be cut by up to 390,000 metric tons per year. BASF shares have been on a downward slide since January 2022. There are probably no good buying arguments at the moment. But the sentiment is already strongly on the negative side. At EUR 41.50, the share is down 39% on a 12-month basis. The P/E ratio is falling to below 7, and the book value of EUR 46 was also recently undercut. Standard stocks are rarely this cheap!

    Nordex - Poor figures again for the wind turbine manufacturer

    Wind turbine manufacturer Nordex once again started the year with heavy losses, making a loss of EUR 151 million in the first quarter after a loss of EUR 55 million in the previous year. Not good news for the shaken shareholders, who thought their stock was well positioned in the climate debate. According to the Management Board, the high costs for the realignment of rotor blade production, a lower installation output and increased raw material and logistics costs are to blame. Nordex delivered the figures several weeks late due to a hacker attack and has already had to give up its SDAX listing as a result.

    The annual forecast, which was lowered at the end of May, remains unchanged, with the operating margin expected to be between minus four and zero percent. In the medium term, the aim is to achieve an 8% margin, but price increases must be implemented urgently to achieve this. The Nordex share price is currently looking for a sustainable bottom. At the beginning of July it went down to EUR 7.93, making a 12-month loss of over 53%. We had permanently advised against a commitment and are waiting for a technical bottom formation in the hope zone of EUR 6 to 8. The risk-conscious investor needs a lot of patience here.

    BYD - Operationally outstanding, the chart also shows strength

    June figures show that BYD's New Energy Vehicle (NEV) segment, which consists mainly of plug-in hybrid and pure electric vehicles, delivered 134,036 vehicles last month, up from 41,366 units a year earlier. BYD's main competitors, NIO, Li Auto and XPeng, could not keep up and also Tesla's China business can only dream of these numbers. After 641,350 units at the half-year point, BYD is now targeting sales of 1.5 million vehicles in 2022. This is what growth looks like!

    BYD is very cleverly positioned. The critical point could be the vertical production structure and the secured access to the important lithium. The share continues to soar and recently reached a new all-time high of EUR 39.90. To secure profits, one should now tighten the safety stop to EUR 37.50. The chart currently shows considerable strength.

    The DAX remains under selling pressure, which applies to almost all blue chips in the index. Growth stocks, however, fell worse recently. The Chinese tech giant BYD is holding up bravely, and BASF and Nordex are still under pressure. Since the latest MMG report, Canadian Erin Ventures has made a 30% leap upwards.

    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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    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 also 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

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author

    Related comments:

    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.


    Commented by Fabian Lorenz on November 22nd, 2023 | 07:20 CET

    BYD with "Tesla killer", JinkoSolar with sales record, and Klimat X Developments with milestone payment

    • Sustainability
    • climatechange
    • Electromobility
    • renewableenergies

    BYD is currently bursting with energy. The Chinese company is rushing from one sales record to the next. To ensure this continues in the coming year, BYD has unveiled two new "Tesla killers". The mid-range SUVs are designed to make life difficult for the Model Y. For those without a climate-neutral business model, CO2 certificates can be purchased from Klimat X Developments. The Company has just received a milestone payment. When will the shares of the innovative company benefit? JinkoSolar shareholders also need to be patient at the moment. The share is not taking off despite the solar group doing well operationally. While the Chinese have reason to celebrate, another competitor disappoints once again.


    Commented by André Will-Laudien on November 21st, 2023 | 07:15 CET

    Attention: New battery technology in demand! Freyr Battery, Manuka Resources, Varta and IBU-tec in focus

    • Mining
    • BatteryMetals
    • Electromobility
    • climatechange

    Despite all ecological reservations, the electrified future is advancing. In an effort to combat climate change, politicians have decided on the complete electrification of the future. The plan to entirely displace fossil fuels will lead many countries into a new economic dimension that will outperform conventional economies for a long time. However, a beautiful, new world must be economically affordable. This requires significant technological advancement and a tremendous amount of money for the transformation; ideological thinking helps little in this regard. Central Europe, in particular, is an importer of raw materials and energy and is a long way from setting world-changing parameters. However, since everything has already been decided in Berlin, millions of batteries and stationary energy storage systems are now needed for the green transformation. The key here is access to the critical metals of the future. These strategic decisions are being evaluated in the stock market. It is worth doing the math.