Close menu




March 28th, 2023 | 07:36 CEST

E-cars - Out of a dream! BYD, BMW, First Phosphate

  • Mining
  • Phosphate
  • Electromobility
  • Sustainability
Photo credits: pixabay.com

While German politicians are still discussing the end of the internal combustion engine, major car companies have long since made up their minds. The future is electric. But the mobility revolution is far from being a done deal! We explain where there are still pitfalls and why a small company from Canada could soon be sitting at the big levers to make the dream of clean e-mobility come true for everyone.

time to read: 3 minutes | Author: Nico Popp
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , BAY.MOTOREN WERKE AG ST | DE0005190003 , FIRST PHOSPHATE CORP | CA33611D1033

Table of contents:


    John Passalacqua, CEO and Director, First Phosphate Corp.
    "[...] Large tailings piles, such as those created in phosphate production from sedimentary rock, will not exist in our process. [...]" John Passalacqua, CEO and Director, First Phosphate Corp.

    Full interview

     

    BMW: China as a market of hope

    The dispute between the Federal Republic of Germany and the EU Commission over the end of the internal combustion engine and exemptions for engines fueled with so-called e-fuels, i.e. synthetic fuels that can theoretically be climate-neutral, dominated discussions last week. Yet it has long been clear among car manufacturers like BMW that the future is electric. Porsche seems to be the only company with any interest in launching e-fuel models in the future.

    BMW and Co. have long been using e-cars. For companies like BMW, this decision also depends to a certain extent on China. China is considered the last growth market for German industrial companies. Years ago, however, the central government in Beijing was already betting on e-mobility there. In order to stay on the ball in the race for market share in China, German automakers followed suit. In the meantime, the popularity of e-cars is also growing in Germany - but doubts about their sustainability remain, especially when measured against the continued use of a combustion engine with modern emissions standards and a fuel-efficient engine.

    BYD can draw from a wealth of resources: Sustainability is the problem

    It also remains to be seen whether Western industrial companies have the raw materials they need to keep up with competitors such as BYD. Chinese competitors currently have better access to critical metals for Greentech solutions. But China's supremacy is not unchallenged. Especially from a sustainable point of view, more and more critical consumers are calling for battery metals to be sourced as cleanly as possible. The Canadian company First Phosphate is now preparing to cover a large part of the value chain for lithium iron phosphate batteries at its site in Québec, Canada. To this end, First Phosphate uses high-grade deposits and state-of-the-art processing methods.

    First Phosphate: Aiming to make e-car supply chains ESG compliant

    "First Phosphate plans to mine phosphate from anorthosites. Igneous rock phosphate deposits have the advantage of not containing radioactive elements, so the process after phosphate extraction is straightforward and does not lead to contamination. In our process, there will be no large tailings piles, such as those created during phosphate extraction from sedimentary rock. Consequently, we will be able to operate a high quality and sustainable phosphate mining practice and thus have all the ESG prerequisites to attract the automotive industry as a customer," explains John Passalacqua, CEO and Director at First Phosphate.

    Once mined, the Company plans to sort phosphate rock and work with partners to produce phosphoric acid and ultimately, with the help of lithium, obtain cathode material for lithium iron phosphate batteries that could be shipped via a nearby deepwater port to battery factories in Canada, the US, Mexico and other countries. In the coming months, First Phosphate plans to start pilot production. "The environment is extremely favorable for innovative companies like ours that will make advanced battery technology ESG compliant from open pit mining onward and make further value creation sustainable," said Passalacqua. First Phosphate's stock went public in Canada just a few weeks ago. Despite the turbulent environment, the stock held remarkably steady. Since phosphate is primarily produced for agriculture, global supply in this area is declining, and production is often not ESG-compliant, First Phosphate may have found a promising niche with its approach. More background on First Phosphate can be found in a recent interview with CEO John Passalacqua.


    Even though the future of e-cars seems to be set, whether e-cars of the future are truly clean and sustainable could depend on projects like First Phosphate. While BYD will continue to use raw materials from China, companies like BMW need to differentiate themselves from the Chinese and become more independent. Since sustainably recoverable phosphate is scarce in Western industrialized countries, much boils down to the Québec site. Companies like First Phosphate could become a crucial piece of the mobility revolution puzzle.


    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 news.financial. 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

    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



    Related comments:

    Commented by André Will-Laudien on March 28th, 2024 | 09:00 CET

    Attention: Uranium despite the energy transition! Does this fit together? Plug Power, Nel ASA, Kraken Energy and Renk Group in focus

    • Mining
    • Uranium
    • Energy
    • renewableenergies
    • nuclear

    It feels like a paradox. The EU aims to be largely climate-neutral by 2050. The main focus is on mobility, heat and energy generation. As a core country of the EU, Germany is taking the political lead in the necessary measures. While France, Poland, Finland and the Czech Republic are actively expanding nuclear energy, this form of energy is virtually taboo in many other countries. Germany has been able to increase its renewable energy sources to over 50% with billions in subsidies at the expense of the taxpayer and the price of energy. Yet, Berlin still has to buy cheap electricity from abroad and also use coal and gas to stabilize the grid. It all sounds kind of crazy, but it gets really interesting when the wind isn't blowing and the sun is only to be found behind the clouds. Which shares should be considered in this mixed situation?

    Read

    Commented by Juliane Zielonka on March 28th, 2024 | 08:50 CET

    Rheinmetall, Almonty Industries, Bayer AG - Arming up for defense with these stocks

    • Mining
    • Tungsten
    • armaments
    • Pharma

    The European Union is providing the defense group Rheinmetall with a total of EUR 130 million for ammunition production. The German company is one of six EU projects that are being funded in a special program to stockpile enough artillery pieces and secure supply chains. Here, Almonty Industries comes into play. Almonty specializes in the exploration, extraction and production of tungsten in two European countries, including Spain and Portugal. Tungsten is used in particular for ammunition. Almonty Industries also operates five mining projects, one of which is the largest tungsten project in South Korea. The increasing demand for the critical metal will soon cause the price of tungsten to skyrocket, as defense is becoming increasingly important for the countries and continents involved in the face of geopolitical tensions worldwide. Defense is also a topic at Bayer. The cancer drug Nubeqa supports the body's immune system in the fight against prostate cancer. Following the recent pipeline flop with Asundexian, the drug has great blockbuster potential and could bring billions of euros into the Company's coffers. Read more about why this is so important for Bayer at the moment.

    Read

    Commented by Fabian Lorenz on March 27th, 2024 | 08:45 CET

    Shares in Focus: TUI, Rheinmetall, and Defense Metals with good reasons for price increases

    • Mining
    • RareEarths
    • armaments
    • travel

    The TUI share was one of the top performers on the German stock market yesterday. The EUR 7 mark was exceeded, making things exciting on the chart. Analysts expect significantly higher prices for the tourism group. Rheinmetall shares are among the top performers of the year. An end to the price increase is not in sight. The armaments group has announced a new order worth billions. The manufacture of armaments, aircraft, cruise ships and numerous other high-tech products would not be possible without rare earths. However, most of these come from China and Russia. This makes the Defense Metals share interesting. The Company is making great strides with its rare earths project in Canada. The share should also benefit from this progress.

    Read