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 Stefan Feulner on July 22nd, 2024 | 06:45 CEST

    Palantir, VCI Global, C3.ai - Beneficiaries of the megatrend

    • AI
    • Fintech
    • Software
    • Technology

    The emergence of ChatGPT brought artificial intelligence into the mainstream. Since then, companies developing various AI services have been springing up like mushrooms. This trend will undoubtedly continue to gain momentum in the future, as various technologies are already too firmly anchored in the economy and society. Despite the current sideways movement on the stock markets, we should continue to keep an eye on the developments of listed players who are likely to benefit from this super cycle in the future.

    Read

    Commented by Fabian Lorenz on July 16th, 2024 | 07:15 CEST

    Next share price jump? TUI, Aixtron, and Desert Gold

    • Mining
    • Gold
    • Travel
    • Technology

    Is the Aixtron share about to make its next leap? The shock of the profit warning was digested with a rise of over 10%. Three analysts recommend the share as a "Buy". Desert Gold is also ripe for a new rally. After more than doubling in a short space of time at the beginning of the year, it consolidated textbook style. Will it soon jump to a new yearly high? The Company is certainly not expensive, and experts consider a gold price of USD 3,000 possible. Important drilling results are also on the horizon. TUI is currently performing well operationally. The summer season business is booming, and the bankruptcy of a competitor is providing additional momentum. Nevertheless, the share is trending sideways. Could the purchase of an island be the trigger?

    Read

    Commented by Stefan Feulner on July 9th, 2024 | 07:30 CEST

    ITM Power, Saturn Oil + Gas, Aixtron - Setting the course for the long term

    • Mining
    • Oil
    • renewableenergies
    • Technology

    After the parliamentary elections in France at the weekend, it is not only in politics that the course for the future needs to be set anew. Recent news from oil producer Saturn Oil & Gas revealed that it has taken a major step toward becoming a "midsize producer. Following this significant transaction, several analysts have given the share a thumbs up and see an opportunity for multiplication. The hydrogen sector is also seeing new movement, suggesting that a long-term rebound could be on the horizon.

    Read