Close menu




November 11th, 2021 | 11:34 CET

Rock Tech Lithium, Noram Lithium, JinkoSolar: Investing in Tesla's neighbors

  • Lithium
Photo credits: pixabay.com

Electromobility and renewable energies are the hot topics of the moment. Only yesterday, the Tesla rival Rivian made a brilliant stock market debut. VW, too, announced that it wants to make even greater inroads in the field of electromobility. All these plans create a market worth billions for the automotive suppliers of tomorrow. At the same time, governments are doing everything they can to support the new lithium and battery supplier industry, creating significant opportunities for investors. We highlight two lithium stocks and look at a company that is winning the fuel of the future.

time to read: 3 minutes | Author: Nico Popp
ISIN: ROCK TECH LITHIUM | CA77273P2017 , Noram Lithium Corp | CA65542K1030 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007

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

     

    Rock Tech Lithium: German-Canadian success story

    When Rock Tech Lithium's share price first started to soar at the beginning of the year, only a few people in the know were aware of the value. The Company wants to mine lithium in Canada. The precious element will be extracted from the earth's surface rather than from brine. This procedure alone is considered much more environmentally friendly than the lithium competition from South America, whose production is at the expense of the water reserves there and is not without controversy. Rock Tech intends to process the lithium obtained in this way and is relying on German engineering skills. In Brandenburg, the Company is planning a processing plant just 60 km from Tesla's Gigafactory. When the Company announced this news at the beginning of October, the share price was unstoppable and doubled within a very short time. But what has happened since then?

    The share has consolidated and reached a level below the EUR 5 mark that could be interesting again. However, the share is still highly volatile. But that is not surprising given the history. There are still many investors sitting on large book profits or latecomers who are losing patience with crumbling prices. If follow-up buyers are scarce in such phases, things can continue to go down. In the long term, however, Rock Tech appears promising, as the Company is already focusing on recycling lithium - from 2030 onwards, it should no longer be possible to operate mines. The Company has already forged collaborations around recycling and is showing innovation. Although this does not help the share price in the short term, it provides hope again in the medium term.

    Noram Lithium: The following weeks will be decisive

    One Company that must be considered a laggard compared to Rock Tech Lithium is Noram Lithium. The Company operates the Zeus lithium project in Nevada's Clayton Valley and aims for an initial production economic feasibility study (PEA) later this year. The project's current resource estimate includes 363 million tonnes of rock grading at 923 ppm as an indicated resource and 827 million tonnes at 994 ppm lithium as an inferred resource. Noram Lithium's long-term goal is to produce at low cost and sell its lithium within the US and to Europe and Asia.

    The stock has recently benefited from US President Joe Biden's infrastructure plan, which includes renewable energy and sustainable propulsion support. There is speculation in the USA that around USD 7 billion could flow into electromobility. Securing domestic lithium deposits could be of additional strategic importance in this context. As the lithium price has risen sharply recently and supply is tight, there are great opportunities for prospective projects such as Noram Lithium. The conditions appear favorable with the Zeus Lithium project in Nevada being close to Tesla's Gigafactory and Albemarle's Silver Peak, a lithium mine producing for decades, also not far away. Noram Lithium also owns its project 100%, and there are no concessions for other parties, such as royalties. With a market capitalization of around EUR 39 million, the Company is also not expensive. The expected details on the economic feasibility could give new momentum to the Zeus Lithium project and attract further investors. The general conditions appear favorable.

    JinkoSolar: China worries weigh on the Company

    The situation is also favorable for JinkoSolar - renewable energy is in demand and is being promoted worldwide. JinkoSolar is also known for good quality and a high degree of efficiency. But what does the share do? On a one-year view, the value has lost about 11.4%. In recent months, China's worries have been an additional burden. When investors pull shares out of a region on a large scale, the good companies are also punished. Investors have to take this country risk into account. The flip side, however, is the opportunity for cheap entry - in the long term, however, investors cannot avoid a company with the market position of JinkoSolar. However, the share will no longer be a multiplier.


    Where the journey with lithium shares can go, stocks like Rock Tech and others have shown. Noram Lithium is just getting ready to follow in their footsteps, benefiting from Biden's infrastructure program and facing important corporate news. JinkoSolar, on the other hand, is a conservative pick with a bit of China exposure. Both cautious and opportunity-oriented investors should not ignore shares around electromobility and renewable energies - the potential is too great.


    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered 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 Stefan Feulner on September 21st, 2022 | 13:41 CEST

    Rock Tech Lithium, Edison Lithium, Albemarle, Allkem - Defying the recession

    • Mining
    • Lithium
    • Commodities
    • Electromobility

    Fears of a global recession continue to grow, with prices for commodities such as copper, lumber, cotton and even grains correcting sharply. In contrast, the lithium price continues to hold at a high level after the explosive rise at the beginning of the year. The reason for this is the continued strong demand from the electric car industry. In China alone, sales of electric cars amounted to 3.2 million units last year, and 5 million vehicles are expected to be delivered this year. In contrast, the existing supply of lithium resources is scarce. In addition to existing producers, the primary beneficiaries of this shortage are the exploration companies, which have already been able to secure attractive properties.

    Read

    Commented by Stefan Feulner on September 14th, 2022 | 15:17 CEST

    BYD, Altech Advanced Materials, Varta - Breakthrough in the battery market

    • Battery
    • Lithium

    Electromobility is considered a key technology in the transformation of the transport sector. In 2021 alone, the number of new registrations and the market share of battery-powered vehicles more than doubled. In addition to the charging infrastructure, efficiency plays a decisive role in the expansion of e-cars. Another obstacle to rapid growth is likely to be the shortage of lithium, an essential raw material for the production of lithium-ion batteries, due to the high demand. A German company is about to start a revolution with new innovative technology. The main component of the new battery is regular table salt, which is available in extremely large quantities and is produced in highly diversified regions.

    Read

    Commented by Carsten Mainitz on September 14th, 2022 | 13:24 CEST

    Aspermont, Allkem, K+S - Shares for the fast lane

    • Digitization
    • Fintech
    • Lithium

    We are living in turbulent times on the stock markets. War, energy crisis and inflation are shaping the moods of market participants. Anticipatory action and understanding the "big picture" and the long-term correlations between supply and demand are part of a stock market trader's toolkit. Exaggerations and understatements are part of the package. There is no getting around shares as a long-term form of investment. Because as stock market veteran André Kostolany said, "If you want to eat well, buy stocks; if you want to sleep well, buy bonds."

    Read