D-Wave, European Lithium, BYD – Silicon Valley, the Alps, China: The tech axis of the future

Analysts euphoric: D-Wave could double in 2025

D-Wave is an exciting company in the field of quantum computing, specializing in the development and provision of quantum computing systems, software, and related services. The Company's products include the "Advantage" quantum computer and cloud-based services. D-Wave has more than 70 paying business customers and over 30 best practice examples of how its customers have saved millions of dollars using quantum computing.

Among the practical applications from the Company's portfolio are production planning in the automotive industry, where, for example, 1000 vehicles can be scheduled in 5 minutes instead of 30, and network optimization for the largest Japanese mobile operator, where a task is solved in 40 seconds instead of 27 hours. This exceptional speed of simultaneous computing processes is what makes quantum computing technology so economically viable.

Investors enjoyed a massive price surge of approximately 755.36% in D-Wave stock last year. The share is currently trading at EUR 5.90. The price rally seems set to continue, as the increasing demand for D-Wave's on-premise systems is coming mainly from research centres, academia and companies that want to use quantum computing for various processes, including, for example, reducing the energy consumption of AI systems. The addressable market is estimated at USD 450-850 billion, with a core market of USD 90-170 billion.

With the current financial figures, D-Wave reports an order intake of over USD 23 million for fiscal year 2024, an increase of around 120% over the previous year. Q4/2024 was particularly successful, with an order volume of approximately USD 18 million, representing a 500% growth over the same quarter last year.

The Palo Alto-based company ended fiscal 2024 with a record cash position of approximately USD 178 million, with USD 150 million available credit line for Q1 2025. Several analysts have now raised their price targets significantly: Roth MKM raised the target from USD 3.00 to USD 7.00, B. Riley from USD 4.50 to USD 9.00 and Craig Hallum from USD 2.50 to USD 9.00. 2025 will be an exciting year for supercomputer investors.

Austria's lithium treasure: BMW joins European Lithium

European Lithium is an Austrian exploration and mining company specializing in the exploration and development of lithium deposits. Its flagship Wolfsberg Lithium Project is strategically located in Carinthia, 270 km south of Vienna. The Company is listed on three stock exchanges: Frankfurt (FRA: PF8), on the Australian Securities Exchange (ASX: EUR) and in the US (OTC-QB: EULIF).

For the European battery supply, the Wolfsberg Lithium Project is emerging as a hot spot. With a remarkable JORC-compliant resource of 12.88 million tons and a high-quality lithium content of 1% Li2O in Zone 1 alone, the Company is positioning itself as a pioneer in European lithium production. The JORC Code is an internationally recognized mine valuation standard and is used worldwide for market-related reporting. In addition to the favourable location, all parties involved in the project benefit from the excellent connection to an existing road and rail network. This means transport routes to all important sales markets for the precious lithium are quickly available. The recently granted six new mining licences at the Wolfsberg project double the mining area and open up new opportunities.

German automaker BMW is showing great interest in these lithium resources. The Company has already made an advance payment of USD 15 million, thus securing a strategically valuable supply agreement. Other business partners include the Saudi Arabian Obeikan Group, which is building a state-of-the-art lithium hydroxide plant in its home country. This plant can reduce local energy costs by 80% - a huge competitive advantage.

European Lithium is also making waves through smart M&A strategies. The Company is expanding its portfolio by acquiring the Leinster Lithium Project in Ireland. Analysts at First Berlin Equity Research see growth potential of over 500% for the Austrians. Their main argument: the planned start of production of the Wolfsberg project coincides with the expected lithium supply shortage from the end of 2027. European Lithium could thus become the main supplier of lithium in Europe.

Change of power in the automotive industry? BYD could take over VW sites in Dresden and Osnabrück

The Chinese battery and vehicle manufacturer BYD is showing great interest in Volkswagen plants in Germany. The Wolfsburg-based company has to make cutbacks and wants to close the existing production sites in Dresden and Osnabrück in the coming years. This will affect around 2,640 employees.

BYD, which already owns plants in Hungary and Turkey, could benefit from the German automaker's predicament. After all, selling the plants is cheaper for the Company than closing them. The value of each plant is estimated at between EUR 100 and EUR 300 million.

For BYD, the German site would be a way of avoiding EU punitive tariffs. How the Chinese decide depends largely on the new German government, which will be elected at the end of February 2025. German-Chinese trade relations have cooled noticeably under the fractured coalition government. BYD shares are currently trading at EUR 32.42. Last year, the price rose by 35.37%. Volkswagen, whose securities are currently trading at EUR 92.86, had to absorb a loss of 16.55% last year.

D-Wave is leading the quantum computing market with impressive numbers: 755% share price increase in the last year, of which 500% growth occurred in the fourth quarter of 2024 alone, and a solid financial base of USD 178 million in cash. Analysts see the share price doubling in 2025. European Lithium can assert itself as Europe's pioneer in lithium production with the strategically important Wolfsberg project. The offtake agreement with BMW (USD 15 million advance payment) and the partnership with the Obeikan Group validate the business model. Investors can get in early and benefit from the growth potential, which analysts see at 500% by 2027. For BYD, the German site, with the potential takeover of two VW plants, would be a way to circumvent EU punitive tariffs. The new German government, which will be elected at the end of February 2025, will play a decisive role in determining how the Chinese decide. The potential takeover could facilitate BYD's access to the EU market and possibly secure 2,640 jobs.