Close menu




October 5th, 2022 | 12:37 CEST

E-mobility and hydrogen: BYD, Almonty Industries, Thyssen, Nel ASA - Things are really starting to happen now!

  • Mining
  • Tungsten
  • Electromobility
  • Hydrogen
  • GreenTech
Photo credits: pixabay.com

In the current geopolitical constellation, the globalized world is showing its real weaknesses. For commodity-dependent Europe and especially Germany, the situation even presents itself as a medium-term showstopper for industry because as winter approaches, governments will have to decide where the remaining gas reserves may be drawn from. But if there is not enough, the decision will likely be made in the direction of the population, and the industry will then have to look for alternatives. Despite the cost of electricity, e-mobility seems to be finding its way, and hydrogen is also slowly getting off the ground. What does this mean for individual stocks?

time to read: 4 minutes | Author: André Will-Laudien
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , ALMONTY INDUSTRIES INC. | CA0203981034 , THYSSENKRUPP AG O.N. | DE0007500001 , NEL ASA NK-_20 | NO0010081235

Table of contents:


    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

    Full interview

     

    BYD - A huge deal with Sixt gives wings

    Just in time for the Paris Motor Show in October, BYD is ready with four models in Germany. The first sales partnerships have been concluded, and now there is a blockbuster deal right at the start. One of the largest German car rental companies, Sixt from Pullach, is ordering 100,000 fully electric vehicles from the Chinese manufacturer. They will be phased into service by 2028. Still, the Munich-based Company plans to take delivery of several thousand vehicles this year and offer them to its rental and leasing customers in Germany, France and the UK.

    This order is an accolade for BYD because it already has an anchor order over its competitors for its entry into Europe. "Our goal is to delight Sixt customers with our latest products and innovations in electric vehicles," said BYD manager Michael Shu. At the same time, it was announced that BYD has become the world's second-largest battery manufacturer after CATL.

    The vertical integration is a boon for Build Your Dreams, as the group surpassed the 100,000 e-vehicle sales mark for the first time in March 2022, and the Company aims to have sold 1.5 to 2 million e-cars by the end of 2022. That would be a fourfold increase in production compared with the previous year. Rival Tesla was already outpaced mid-year. BYD's stock has not been able to escape the weak market as a whole, losing around 40% since its all-time high in July at EUR 41.80 until now. However, a strong rebound in the share price to just under EUR 28 is now evident, with the current market value of just under EUR 80 billion delivering a neck-and-neck race with Germany's Volkswagen AG. BYD remains a good long-term investment.

    Almonty Industries - Global demand creates project security

    Tungsten is needed for high-tech production and the hardening of steel. The world has problems with China as the leading supplier because with all the smouldering geopolitical conflicts, there is also the threat of rationing from the Middle Kingdom. The Canadian Almonty Industries (AII), with its 3 locations in Spain, Portugal and South Korea, has fully concentrated on this narrow tungsten market. The uniqueness of the metal lies in its heat resistance and hardness properties for surfaces. Therefore, the technical field of application ranges from construction to high-tech, medicine, armor and aircraft technology. While it usually requires smaller quantities, availability remains important. In e-mobility, each vehicle already requires about 1.4 kilograms of tungsten, which could expand to as much as 2.5 kilograms with the introduction of tungsten-based cathode coatings in Li-ion batteries.

    With the development of the Company's Sangdong mine in South Korea, world supply could shift by about 5% to a friendlier jurisdiction. Because of its strategic importance, Germany's KfW is also involved in financing the project. Of the USD 75 million pledged, 22.5% has already been paid out. Specifically, the project consists of the construction of a vertically integrated nano tungsten oxide processing plant to supply the South Korean industry in the battery market. Almonty is currently negotiating with Austrian plant engineering specialist Frauental to design the facility at South Korea's Seok Moon industrial complex. Local producers Samsung or TSMC will welcome Almonty happily.

    In the fourth quarter, members of the board and staff will visit the planned mine site together with KfW IPEX-Bank and external consultants. After that, things should move quickly, as the tungsten market is more receptive than ever. The AII share has not been able to escape the current downward spiral for explorers, although the timeline to production should now be manageable. The current share price in Canada is a low CAD 0.60, valuing the total project, including debt, at a low EUR 200 million. Feel free to put Almonty Industries back on the investment shortlist.

    ThyssenKrupp and Nel ASA - Hydrogen could become a blockbuster topic in 2023

    In the slipstream of e-mobility, hydrogen technology is also developing. Significant public funding is still lacking, even though announcements have been made in several government packages. But the industrial appeal is clear because currently, the heavy dependence on fossil fuels is taking its revenge, as is the highly dynamic nature of electricity prices. Hydrogen could, in widespread production, remedy the disadvantages of fossil or electric mobility, but currently, the production costs are not yet competitive.

    Nel ASA is one of the key European players. However, quarterly sales are still very low at around EUR 25 million. So it is already a big order when the US Department of Defense orders fast and advanced PEM electrolyzers in the amount of USD 5.6 million. Nel is cooperating with the ERDC-CERL, a highly established US military-related facility. Thyssen is also making progress with its hydrogen division in the US. That is because its subsidiary Nucera is supplying its engineering services for the alkaline production of hydrogen to various Air Products sites for the mobility market in California. Because of the poor state of the market, Thyssen recently postponed Nucera's IPO indefinitely.

    Both shares are still technically under pressure. ThyssenKrupp recently even trended towards an all-time low of EUR 4.30, while the Nel share again reached its frequently tested lower limit since 2020 at EUR 1.10. Initial recovery movements of around 10% were recently achieved, thus moving the sell-off zone out of sight for the time being. In a better environment, the popular technology stocks have considerable potential.


    In addition to e-mobility, the energy transition is the key driver for innovations in the GreenTech sector. BYD is a Chinese standard stock with high growth momentum. ThyssenKrupp and Nel ASA can currently only dream of this. Almonty Industries is now making rapid progress in South Korea.


    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

    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 André Will-Laudien on October 22nd, 2025 | 07:35 CEST

    Gold and silver – New record highs! Keep an eye on Barrick, Agnico Eagle, Desert Gold, and First Majestic!

    • Mining
    • Gold
    • Silver
    • Commodities

    Silver prices broke through the USD 53 mark for the first time at the beginning of the week, and gold is attempting to reach the USD 4,300 mark. Precious metal enthusiasts have been anticipating these moves for a long time, but traders on the futures exchanges clearly have not. In addition to extreme physical scarcity, the exploding prices are also attributed to heavy short squeezes. The physical silver market is under tremendous pressure as the availability of real metal to hedge the numerous futures transactions is severely limited. This imbalance is causing erratic market reactions and driving the spot price into an almost exponential sell-off. The current rally in precious metals is driven by geopolitical uncertainty, industrial demand factors, and the search for safe investments. In times of excessive government debt, the weakness of the US dollar is now also weighing on the market. Which companies should investors keep a close eye on now?

    Read

    Commented by Fabian Lorenz on October 22nd, 2025 | 07:30 CEST

    SHARE PRICE EXPLOSION for commodity gems!? Nordex, Aurubis, Salzgitter, and Power Metallic Mines!

    • Mining
    • Lithium
    • Copper
    • Commodities
    • Steel
    • Wind
    • renewableenergies

    Shares in the commodities and precious metals sector have been unstoppable in recent weeks. Power Metallic Mines could soon become an explosive latecomer to the rally. There are good reasons for this, as the CEO recently made clear. At Aurubis, the rally appears to be over for now. Analysts are skeptical, and the major shareholder is cashing in his shares - albeit in an unusual way. So should you sell now, too? The past few months have been unusually positive for Nordex. There is currently no sign of a slump in the wind business. What are analysts saying after the latest order intake?

    Read

    Commented by Carsten Mainitz on October 22nd, 2025 | 07:25 CEST

    The stock market success stories Almonty Industries, TKMS, and Steyr Motors are opening a new chapter - and it is still not too late to get in!

    • Mining
    • Tungsten
    • CriticalMetals
    • Automotive
    • hightech
    • Defense

    The trade conflict between the US and China is intensifying and reaching a new strategic dimension. Beijing is deliberately restricting exports of critical raw materials and rare earths that are indispensable for high-tech industries, defense, and the energy transition. Western industries are coming under pressure, security of supply is faltering, and prices are rising. Meanwhile, the beneficiaries of this situation, such as producers of critical raw materials, are experiencing a boom. What happens next, and what does the stock market newcomer TKMS have to do with it?

    Read