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January 31st, 2022 | 12:57 CET

Defense Metals, BYD, Daimler - New development phase reached!

  • RareEarths
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With the amendment of the Climate Protection Act, the German government has tightened climate protection targets and is aiming for greenhouse gas neutrality by 2045. Emissions are to be reduced by 65% compared to 1990 as early as the beginning of the next decade. One key to putting this into practice is the electrification of transport. Around 14% of newly registered vehicles had an all-electric drive in 2021. That means the proportion of e-cars on German roads almost doubled compared with the previous year. As a result, demand for the required raw materials is rising ever more markedly. Surpluses in demand can already be seen.

time to read: 4 minutes | Author: Carsten Mainitz
ISIN: DEFENSE METALS CORP. | CA2446331035 , BYD CO. LTD H YC 1 | CNE100000296 , DAIMLER AG NA O.N. | DE0007100000

Table of contents:

    Defense Metals - Flagship project taken over

    The big plan for policymakers is to successfully implement the climate turnaround and thus drive forward the expansion of renewable energies and the electrification of transport, away from fossil fuels and towards battery-powered vehicles. Electric cars, solar panels and wind turbines are thus the focus. But production could become massively more expensive as prices for cobalt, copper, lithium and nickel rise. Rare earth metals are also becoming more expensive, underpinned by rapidly growing demand in various industries.

    Rare earth metals are needed, among other things, in the production of permanent magnets, which are used in the manufacture of electric motors. The metals are also used in smartphones, notebooks and LED lights. Other important areas are security and nuclear technology, and, above all, the defense industry. Manufacturers of rockets, jet engines for fighter jets, control electronics, drones, space vehicles, satellites, high-tech weapons, and explosives all need rare earth metals. One problem for the Western industrialized nations is that more than 80% of their production comes from China. Already in the past, the Middle Kingdom restricted its export volumes. Due to the trade dispute with the USA, the search for deposits outside China began years ago.

    One of the most promising deposits is held by Defense Metals. The Canadians recently acquired 100% of the rights to their Wicheeda project. The 2,008-hectare rare earth element concession is located about 80 km northeast of the city of Prince George in British Columbia. Geologically, the concession area lies within the Foreland Belt and the Rocky Mountain Trench, an important continental geological structure. The Foreland Belt hosts part of an extensive alkali volcanic province that extends from the Canadian Cordillera into the southwestern United States and contains several carbonatite and alkali intrusive complexes.

    In addition to the complete acquisition, submitting a preliminary economic initial assessment (PEA) was another development step. In addition, the Company's leadership has been strengthened with proven professionals to achieve the ambitious targets for the current year. Dr. Luisa Moreno has been appointed to the Board of Directors and will now assume the role of President and Director of the Company. In addition, Dr. William H. Bird has also been appointed to the Board of Directors.

    In 2022, Defense Metals plans to upgrade and expand the mineral resource and commence geotechnical testing. Drilling results expected in the first quarter of 2022 regarding the expansion and definition of the resource will form the basis for further supplemental drilling. In addition, a preliminary feasibility study is to be commissioned. However, its completion is expected to extend beyond the turn of the year. The Company remains interesting given the further increase in global demand for rare earths. The stock market value is currently CAD 39 million.

    BYD - Demand remains high

    Growth in the electric car industry remains high; investors could see this in Tesla's most recently reported figures. Tesla's revenue in Q4 2021 was around USD 17.7 billion. In Q4 2020, the electric carmaker still recorded sales of USD 10.7 billion.

    The sales figures of the Chinese e-car maker BYD also rose sharply last year. Overall, the carmaker tripled its sales of electric-powered vehicles (new energy vehicles, NEVs) to 603,783 units. A significant expansion of capacity is expected to result in around 1.2 million NEVs rolling off the production lines in 2022.

    In addition, the Company, financed by Warren Buffett, is also growing in the field of e-buses. For example, another electric school bus was unveiled in the USA. The new "Type A" comes in three length variants between 7m and 8.1m and offers space for up to 30 students. By comparison, the "Type D" is between 10.7 and 12.1m long and can accommodate up to 84 students.

    Daimler - Now known as the Mercedes-Benz Group

    Concentration on the passenger car and van business and the spin-off of the Daimler Truck division prompted the Stuttgart-based Company to change its name. As of January 29, the official name of the Daimler Group is now "Mercedes-Benz Group". The official renaming and an entry in the commercial register will take place on Tuesday, February 1.

    In an online conversation with journalists, Group CEO Ola Källenius expressed confidence for the future. He sees high potential in self-driving cars. "Autonomous driving is an incredible potential for the future", Källenius said. He pointed out that the Stuttgart-based manufacturer would enable highly automated driving in S-Class luxury sedans in series production, making it an industry pioneer. He added that it was "crystal clear" to the automaker that customers would want more of it in the future.

    The electric car industry is growing, as evidenced by the sharp rise in sales figures of Tesla and BYD. In order to achieve the goal of climate neutrality, this trend will intensify in the coming years. As a result, the industry will need raw materials such as rare earths. Defense Metals owns property outside China and should benefit enormously from this.

    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    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 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.

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    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author

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    Plug Power, Bayer, Defense Metals: Shares in panic mode

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    Is everything not so bad at Plug Power, after all? In January, the hydrogen specialist triggered panic among investors with an announced capital increase. Now, the CEO is suddenly rowing back. So, should one buy the stock now? One analyst advises caution. Bayer shareholders are also in panic mode. The downward trend of the share simply cannot find a bottom. Even at this level, analysts are cautious. Defense Metals, on the other hand, is benefiting from panic - because this concerns the supply of rare earths. The dependence on China is enormous. Defense Metals aims to change this with its rare earth project in Canada. The Company CEO expressed confidence in an interview, stating that an important agreement has been reached with the local population, and important dates are on the horizon.