Close menu




December 30th, 2021 | 11:35 CET

Standard Lithium, Manganese X Energy, Daimler Truck - The future of the battery

  • Electromobility
Photo credits: pixabay.com

Electric cars would never have existed with the conventional lead-acid batteries popularly used in remote controls and the like. The development only became possible with the invention of lithium-ion batteries, which can be charged much more often and thus significantly increase battery life. The advantage of electric mobility is emission-free driving. The disadvantage is longer refueling times, shorter range and the need for lithium and other rare raw materials, such as manganese. It is precisely the batteries that make electromobility so expensive. It is not for nothing that Tesla is trying to push the price down to under USD 100 per kilowatt-hour. Experts expect that the prices of internal combustion and e-cars will then converge.

time to read: 4 minutes | Author: Armin Schulz
ISIN: STANDARD LITHIUM LTD | CA8536061010 , MANGANESE X ENERGY | CA5626783008 , Daimler Truck Holding AG | DE000DTR0013

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

     

    Standard Lithium - Big financial injection

    Lithium is essential for lithium-ion batteries. After Volkswagen announced that they would shift more and more production towards e-cars, the lithium price shot up. Demand will increase significantly in the coming years. In 2020, sales were only 305,000 metric tons; by 2030, it will likely be between 1.5 and 3 million metric tons. Canadian lithium producer Standard Lithium plans to supply part of this demand. The Company will use the infrastructure of its partner Lanxess, which is also a customer.

    The Company's value rose all year until a sensitive setback in November. The setback was caused by a major short sale by Blue Orca Capital, which believed that Standard Lithium was overvalued. The sell-off was quickly ended when the entry of Koch Investments Group was announced. Their investment amounts to USD 100 million. The group acquired about 13.5 million shares at USD 7.42. With this, the takeover rumors about Standard Lithium should be over.

    In November, the PEA study was officially submitted to the authorities. Annually, 30,000 tons of EV-compliant lithium could be produced. With the money of the Koch Group, it should be possible to take the step to become a significant producer. A triangle formation has currently formed in the chart. As an interested investor, one should wait to which side the triangle is resolved and then look for an entry. The coming year remains exciting in the lithium market.

    Manganese X Energy - PEA about to be completed

    The demand for cobalt for lithium-ion batteries is high, but deposits are limited and could be depleted in around 11 years. In addition, it is toxic, expensive and often associated with child labor. Elon Musk announced in 2020 that he would do without cobalt in the Tesla batteries if possible. An alternative is manganese, and this is where Manganese X Energy from Canada comes into play. The Company focuses on the exploration of manganese, copper, nickel and cobalt. The latter three metals are found at the Peter Lake project.

    The main project, Battery Hill, is located in Woodstock and has large manganese deposits. The area is 1,228 hectares in size and consists of four manganese zones with 55 claims. A NI 43-101 report was filed in September indicating that the project area contains 34.86 million tonnes of proven and indicated mineral resources grading 6.42% manganese. Furthermore, an additional 25.91 million tonnes at a grade of 6.66% is suspected. CEO Martin Kepman expects the project to have a life of between 25 and 30 years, which he mentioned in an interview with Proactive.

    The PEA study, being conducted by Wood, is expected to be completed in 2-3 months. It is being prepared in close coordination with partner Kemetco Research, which in turn is responsible for the metallurgical program. A positive outlook from the PEA study could certainly boost the stock, which is currently trading at CAD 0.30. The share has been trading between CAD 0.225 and CAD 0.42 since the beginning of August. It is a long way off from its annual high at CAD 1.04.

    Daimler Truck - Successful debut

    On December 10, the Daimler Truck share celebrated its stock market debut. The move had been planned for a long time, and after 125 years, the bus and truck division is independent. This should allow both parties to unleash their full potential. Daimler Truck is producing the eActros in series for the first time at its Wörth plant. The new electric truck has 3-4 batteries on board and is priced 3 times higher than a conventional diesel. However, the vehicle scores points in terms of maintenance and wear. Here, the costs are significantly lower than for a diesel vehicle.

    The first major order for 120 electric trucks came from Sweden from the transport company Einride. A good start for the head of the Truck division, Martin Daum. Above all, he wants to increase the return on sales, which is currently between 6% and 8%. The target is at least 10% by 2025. To achieve this target, fixed costs are to be reduced by 15%. If the Corona Crisis normalizes, as there is also a chip shortage in the truck sector, sales should be able to increase.

    After its start at EUR 28, the share rose to EUR 35.10 and is currently trading at EUR 32.18. The stock market start can be described as successful. In the short term, selling pressure could arise if, for example, larger ETFs sell their positions. Goldman Sachs and JPMorgan analysts are optimistic about Daimler Truck in the long term. Compared to the industry, the stock is still favorably valued.


    There will be some new developments in battery development in the coming years. Lithium will undoubtedly be needed, so Standard Lithium is well-positioned. Manganese X Energy provides an alternative to cobalt; the upcoming PEA should be looked at closely. At Daimler Truck, the batteries are needed for their trucks and buses. Especially in this segment, further developments in batteries are enormously important to achieve the breakthrough.


    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

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



    Related comments:

    Commented by Juliane Zielonka on December 1st, 2022 | 13:09 CET

    First Hydrogen, Tesla, Volkswagen - Hydrogen or battery drive, who makes the race?

    • Hydrogen
    • Electromobility
    • GreenTech

    The German Federal Ministry of Research and Education has big plans: the natural gas network is to be converted as a supply structure for hydrogen so that Germany is well equipped for the future. The Canadian company First Hydrogen is betting on hydrogen propulsion, launching its first production facility in Quebec. A call for leadership is being heard regarding Elon Musk and his car company Tesla. It seems that a blue bird and the desire for freedom of expression are taking up so much of his time that the share price is wobbling. The competition is not sleeping: Volkswagen is currently number one in Europe with its EV models. Who will make the race?

    Read

    Commented by Stefan Feulner on November 30th, 2022 | 12:01 CET

    Profit now from the energy transition - Rock Tech Lithium, Power Nickel, Shell

    • Mining
    • Lithium
    • Electromobility

    In the past, the internal combustion engine was at the center of the automotive industry, but this is now to change as quickly as possible in order to achieve the specified climate targets. Electrification is the magic word. However, there are high hurdles to overcome in implementing this. For example, it is still not certain whether the battery metals required for this, such as lithium, cobalt, copper and nickel, are available in sufficient quantities. Demand for the critical metals already exceeds supply. The beneficiaries are undoubtedly the producers of the scarce goods.

    Read

    Commented by André Will-Laudien on November 30th, 2022 | 11:58 CET

    What to buy cheap? BYD and Uniper, BASF and Manuka Resources are on the rise

    • Mining
    • Commodities
    • Electromobility
    • chemicals

    Even if BYD delivers close to 100,000 vehicles to Sixt in the next few years, this is not a guarantee for rising share prices. After all, major shareholder Warren Buffet is divesting his Chinese hobby horse. Does he know more? Is it a portfolio decision, or does he want to preemptively counter possible geopolitical surprises related to Taiwan? We do not know. The fact remains: Buffet has a lot of followers, and that is forcing the BYD price further and further down. Meanwhile, BASF reports good numbers and pushes further north with a seasonally firm DAX - who would have thought? We dive a little deeper.

    Read