Close menu

August 25th, 2022 | 13:12 CEST

Finding the best GreenTech stocks: BYD, Defense Metals, JinkoSolar and Nordex in focus

  • Mining
  • RareEarths
  • Electromobility
  • GreenTech
Photo credits:

Since Joe Biden's Climate Bill, GreenTech stocks have been on everyone's lips. That is because, in addition to the EU, the US now also wants to step on the gas pedal significantly. It is all about investing in the future of climate protection. This primarily involves technologies for alternative energy generation, such as solar or wind power plants. Equally in focus, however, are the drive technologies for the many vehicles on our roads. The pivotal point is strategically important metals; they are rare and highly sought after. International dependence on China makes many projects a tough balancing act. But some companies are well positioned. Have they already gone too far?

time to read: 4 minutes | Author: André Will-Laudien
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , DEFENSE METALS CORP. | CA2446331035 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , NORDEX SE O.N. | DE000A0D6554

Table of contents:

    Terry Lynch, CEO, Power Nickel
    "[...] Nickel, therefore, benefits twice: firstly from its growing importance within batteries and secondly from the generally growing demand for such storage. [...]" Terry Lynch, CEO, Power Nickel

    Full interview


    BYD - The Chinese manufacturer knocks on Europe's door

    Since Warren Buffet's entry, the "Build Your Dreams" share (BYD) underwent a fabulous development. In the meantime, the group has become one of China's largest integrated technology companies. Its market capitalization recently surpassed that of Volkswagen, the world's largest car manufacturer.

    In addition to Japan, the Company has now made its way to Europe. At the upcoming Paris Motor Show in September, it plans to unveil 4 models to the general public. Active talks are also already underway with potential dealers about a sales partnership. The European automotive industry is still lagging somewhat behind China and the US in e-mobility but has caught up considerably in the last 2 years. Now there is a trial of strength between German and international engineering. However, since lithium-ion technology is not really getting off the ground, the most favorable supplier will ultimately win the race.

    BYD has already set up camp in Norway. What sounds a bit ambitious to the ears of many is an attempt to break into different segments. While the BYD SUV Tang is aimed more at families, the Han is a chic sedan that appeals more to Model 3 or even Model S enthusiasts who might find a Tesla too expensive. And then there is the Atto 3, a mid-size car with a hatchback intended for the masses. It could become a competitor to the VW ID.3 or CUPRA Born. The BYD share, which is no longer cheap, is currently consolidating between EUR 35 and EUR 40. Investors should set a tight stop at EUR 33.80 and quietly watch what happens.

    Defense Metals - Excitement with a view to 2023

    Another protagonist among the GreenTech stocks is the Canadian rare earth explorer Defense Metals. The Company focuses on substances commonly used in the energy market, military and national security. These rare metals are especially important in the production of green energy technologies because they enable high-strength alloys and provide magnets for generators.

    Defense Metals' proprietary Wicheeda property consists of 9 mineral claims covering an area of 4,244 hectares located approximately 80 km northeast of the city of Prince George, British Columbia. Figures from the 2021 Pre-Feasibility Study provided significant results. For example, an open pit mine with mill throughput of 18 million tonnes is expected to be possible, and the mine life is calculated at 19 years. At an internal rate of return of 18%, this results in a present value of CAD 517 million. An average of 25,423 tons of rare earths could be produced annually. Preliminary work will continue until mid-2023, and management facilitated a site visit for strategic stakeholders and analysts in mid-August. Interest in the property is exceptionally high.

    For North America, a new supplier of rare earths would be a small step toward greater independence from China, which accounts for 85% of the world market. With the latest results, Defense Metals (DEFN) shares are stabilizing quite well between CAD 0.17 and CAD 0.22. With 183.4 million shares, the current market value is just under CAD 36 million. Looking ahead to 2023, we believe much higher prices should be expected.

    JinkoSolar and Nordex - It is not that simple after all

    Large consumers of strategic and rare metals are the GreenTech companies JinkoSolar and Nordex. However, due to their different focus and location, both have to deal with very different requirements and problems.

    JinkoSolar from China had raised over USD 1.5 billion in funds a few months ago to stem further developments in panel technology. This was at a time when markets were open to capital raises. Currently, China is struggling with weaker domestic demand and exports are also suffering from global recessionary trends. It is not yet a burden for Jinko because the backlog of orders from the climate protection programs, especially from Europe, is still significant. However, the euro is gradually weakening and undermining future growth opportunities. Due to the ongoing drought in Sichuan province, the state has now rationed electricity, which is affecting manufacturing capacity at the plants there. As of now, it is uncertain when JinkoSolar's production facilities will be running at full capacity again. Since JinkoSolar followed a steep upward trend until recently, doubts should now be raised as to whether the high at just under EUR 77 has not marked the end of the line.

    Nordex has now procured fresh capital from the scolded shareholders several times. After two profit warnings in a row, the Company now believes it will not be profitable again until 2023. However, Nordex was able to land new major orders from Germany and Scandinavia in July. The linchpin for the Hamburg-based company's profitability remains the high cost of preliminary products, a lack of personnel and constant disruptions in the supply chains. However, these issues will only ease in the long term and are a heavy burden. After a brief rally to just above EUR 11, the stock has now landed back at EUR 9.70. However, it is still a long way from the low of EUR 7.04. The mood for the share is slowly improving, but we do not expect a miraculous rally in the short term. However, additional purchases in the EUR 7.50 - 8.50 range make sense in the medium term.

    The availability of strategic metals could become the linchpin of essential products in the future. In order to drive GreenTech forward, an abundance of different metals is needed, which are not so easy to find everywhere on the globe. China is in the driver's seat here, while the Europeans are finding it increasingly difficult to maintain a solid position politically. Defense Metals is poised to provide an important building block in the foreseeable future.

    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.

    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 December 7th, 2023 | 08:50 CET

    Snow chaos and climate madness, who is playing in the Premier League of the energy transition? Nel ASA, Power Nickel and Plug Power under the microscope

    • Mining
    • Nickel
    • BatteryMetals
    • renewableenergies
    • Energy

    Snow chaos and new record highs. While the DAX 40 demonstrates itself as the world's best blue-chip index, the German economy is currently navigating downward. It is not the earnings outlook that is presently driving share prices but the hope of lower interest rates. Meanwhile, the endless climate debates in Dubai continue. Among realists, however, there must be fears that the local oil lobby will not let a German know-it-all put a stop to the lavish margins with fossil fuels. There will, at least, be a friendly Arab nod to the 2050 climate goals and exclusive indulgence for the high-ranking German delegation. Whether this justifies federal expenditure of more than EUR 50 million is something we will leave uncommented. More important is a look at the top titles of the upcoming energy transition - where is the next 100 percenter lurking?


    Commented by Fabian Lorenz on December 7th, 2023 | 08:40 CET

    TUI strong! BYD reacts to share price slide! First Hydrogen share price about to jump?

    • Hydrogen
    • fuelcell
    • Tourism
    • Electromobility

    TUI shares reacted to strong figures yesterday with a jump of over 10%. The tourism group also announced its intention to leave London and relocate its headquarters to Germany. However, the initial reactions from analysts were somewhat cautious. Given BYD's disappointing performance throughout the year, price reductions and negative analyst opinions have led to another sell-off. Now, the Company has decided to buy back its own shares, but will that be enough for an upward trend? First Hydrogen has several pieces of promising news. The Canadians have introduced their hydrogen fuel cell commercial vehicles in the UK, and interest is high. Furthermore, they plan to enter battery production with a partner. Will the three shares take off further, driven by the positive news?


    Commented by Armin Schulz on December 6th, 2023 | 08:00 CET

    Siemens Energy, Defense Metals, Rheinmetall - Rare earths as a risk factor

    • Mining
    • RareEarths
    • renewableenergies
    • armaments

    The scarcity of and access to rare earths has become a major global concern. China plays a decisive role in the production of rare earths, as the country mines 60% of all rare earths worldwide and processes 85% of them. After the US banned the export of AI chips, China considered banning the export of rare earth metals. These trade blockades from both sides are causing tensions in international trade relations and concerns about supply bottlenecks. Rare earths play an important role in wind power, armaments, medicine, electromobility and the electronics industry. As an investor, one should be aware of these risks.