Close menu




July 28th, 2022 | 10:19 CEST

Nel ASA, Altech Advanced Materials, Varta - Gamechanger in the battery market?

  • Technology
  • Investments
Photo credits: pixabay.com

Due to the energy transition, the transformation of transport from combustion engines to vehicles powered by electricity is underway. Globally, this is drastically increasing the demand for batteries. The battle for the best efficiency and range is in full swing, not just among electric car manufacturers. To date, the most powerful storage devices for electrical energy on an electrochemical basis have once again come from China. However, a German company is poised to become the new standard on the market by developing a new coating method.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: NEL ASA NK-_20 | NO0010081235 , ALTECH ADV.MAT. NA O.N. | DE000A2LQUJ6 , VARTA AG O.N. | DE000A0TGJ55

Table of contents:


    Altech Advanced Materials - New standard in battery technology?

    The coating technology for Altech's "Silumina Anodes" anode material could become the new standard in battery technology, but there is still a long way to go. The German company Altech Advanced Materials AG owns 25% of the joint venture working on this highly innovative development, while the remaining 75% is held by the Australian company Altech Chemicals. The goal is clearly defined. Batteries will be coated with a special nano-coating of high-purity aluminium oxide and an enrichment of silicon, which should prevent the deposition of lithium particles on the electrodes. A loss of capacity, as can currently be observed in lithium-ion batteries, is thus significantly minimized.

    The performance of a battery thus increases by 15%, and the service life is extended by as much as 30%. In addition, further research showed that by increasing the proportion of silicon at the anode, it is possible to double the performance. The result of the pre-feasibility study for the planned ceramic anode composite coating plant in Schwarze Pumpe, south of Cottbus, showed the clear potential. The project's pre-tax net present value (NPV) was said to be around EUR 420 million. Assuming full capacity utilization of 10,000 t p.a. at the production facility still to be built, this would result in EBITDA of EUR 52 million. The stock market value of Altech Advanced Materials, which holds 25% as described above, is currently EUR 6.22 million.

    A partnership with the Fraunhofer Institute IKTS was recently adjusted. The collaboration aims to accelerate the testing and qualification process for Silumina Anodes and to independently verify the long-term performance of the anode material in various battery applications. In addition, the loss of half of the share capital was announced. Proposals for various capital actions are on the table and will be presented at the Annual General Meeting scheduled for August 23, 2022. The technology is promising but also carries risks at the current stage.

    Bullish formation continues

    After months of correction and high price losses of almost 80% at the peak, the price of the Norwegian hydrogen specialist could soon have completed its bottom formation. The initial igniter was the recently published largest order in the company's history. According to this, the subsidiary Nel Hydrogen Electrolyser AS was able to announce the largest order to date for the delivery of electrolyzers for hydrogen production from an unnamed customer in the United States. The volume exceeds 200 MW and includes alkaline electrolyzers for industrial applications.

    The order for the electrolyzer stacks is a firm order worth more than EUR 45 million. Production and delivery of the stacks are scheduled from February 2023 to mid-2024 at Nel's electrolyzer manufacturing facilities on Heroya. "We are very pleased to announce the largest order ever for Nel. This project will demonstrate Nel's delivery and execution capabilities on a large scale and will be a valuable reference for future large orders," says Hakon Volldal, the new CEO of Nel ASA.

    Swiss bank Credit Suisse lowered its price target for Nel ASA to NOK 15.00, equivalent to EUR 1.51, from NOK 19.30, but left its rating at "Neutral." Currently, the stock is trading at EUR 1.52, which is already above the analyst's price target. A strong buy signal would be generated when exceeding the mark at EUR 1.61.

    Varta - Waiting for the figures

    There is little news at the moment from the long-established German battery group based in Ellwangen in Baden-Württemberg. Nevertheless, some investors might feel queasy because, on August 11, the group will present its figures for the second quarter. It is unlikely that there will be any positive surprises here, given the negative factors with rising raw material prices and interruptions in the supply chains in recent months.

    In the last weeks, there was also an announcement that could point to weaker prices. Insider and majority shareholder Michael Tojner and, respectively, the industrial group Montana Tech Components managed by him, sold 200,000 Varta shares at prices of EUR 78, which means an equivalent value of EUR 15.6 million. In total, 55.9% of the Varta shares are attributable to Tojner.

    Also, from a chart-technical point of view, the situation continues to cloud over. At EUR 73.92, the share price is only just above its low for the year at EUR 67.88. A break of this support area could well lead to the area around the EUR 50 mark. That is where the low lies due to the outbreak of the Corona pandemic in March 2020. In view of these indications, observation continues to be the best alternative.


    The signs continue to point to recovery at Nel ASA. In contrast, investors should wait for the quarterly figures for Varta. Altech Advanced Materials is currently in correction mode. The current level could serve as a long-term entry point for speculative investors who believe in the technology. However, here too, the Annual General Meeting should be awaited concerning further capital measures.


    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

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by Armin Schulz on August 8th, 2022 | 12:45 CEST

    Infineon, BrainChip, Nvidia - Chip shortage will continue in 2022

    • AI
    • Technology
    • Digitization
    • chips

    The chip shortage is not only omnipresent in the automotive industry. Most recently, AOK was no longer able to issue electronic health cards to its policyholders because the chips were missing. According to McKinsey, the semiconductor industry is expected to grow by 6-8% annually until 2030. Nancy Pelosi's visit to Taiwan could further fuel the chip crisis in the future. It is important to know that the island nation produces about two-thirds of all microchips needed worldwide. There is a latent danger that China will want to annex Taiwan. The USA is already trying to make itself less dependent on Asia. To that end, a USD 369 billion semiconductor manufacturing stimulus bill has been passed by Congress. Today we look at three companies that will benefit from the investment.

    Read

    Commented by Juliane Zielonka on August 5th, 2022 | 11:54 CEST

    Meta Materials, JinkoSolar, BioNTech - Smart technologies as growth boosters

    • Innovations
    • Technology
    • metamaterials
    • Biotechnology

    Solar and photovoltaic companies have been hot in the financial markets since the shifts in the energy market. Chinese supplier JinkoSolar, for example, is now launching solar batteries for home use. Smart buildings are an important component in urban city planning. Where there is plenty of sunshine, its energy is converted for personal use, and Australian residents are benefiting from JinkoSolar's technology. In order to increase the efficiency of such energy sources, Meta Materials offers innovative solutions that make solar systems even more cost-effective. Thanks to numerous patents, they also have a business model, which will please long-term investors in terms of growth opportunities. Rather unpleasant, however, are the measures planned by the German government for the coming fall and winter. Masks or vaccination is the calculation, which will at least bring some joy to BioNTech shareholders.

    Read

    Commented by Stefan Feulner on August 4th, 2022 | 13:53 CEST

    Crash! Which shares are attractive now - TeamViewer, Viva Gold, Infineon

    • Mining
    • Gold
    • Technology
    • Investments

    The technology sector has been in a sharp correction for months. The leading technology index from the US alone, the Nasdaq-100, recorded price losses of around 34% up to its low. Since the middle of last month, a countermovement has set in. However, many companies are still at an interesting entry level. Currently, the season for the publication of the figures for the second quarter is also underway. Here it becomes clear which companies you can build on in the future or which title you should remove from your portfolio.

    Read