Close menu




October 11th, 2021 | 12:18 CEST

Standard Lithium, Meta Materials, Varta - The race is still open!

  • Technology
Photo credits: pixabay.com

Faster than expected, the shift toward electric drive is taking place among motorists. Political pressure and public opinion drive some car buyers to the alternative powertrain counter despite many technical hurdles. That is creating an increased demand for many critical raw materials, which is currently challenging to meet. As a result, prices for metals and battery materials have been going through the roof for several months now, and a veritable commodity inflation is spreading. We look at interesting investment opportunities.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: STANDARD LITHIUM LTD | CA8536061010 , Meta Materials Inc. | US59134N1046 , VARTA AG O.N. | DE000A0TGJ55

Table of contents:


    Standard Lithium - Huge lithium deposits in Arkansas

    The new registration figures of the Federal Motor Transport Authority speak a clear language: In September, alternative drives showed strong growth. While new registrations of gasoline-powered cars were down 41.4% from a year earlier, new registrations of all-electric vehicles were up 58.8%. A total of 33,655 new electric cars were registered last month, while plug-in hybrids grew by only 13.5% to 22,842 units. Parallel to the red-green electoral success, there is now a noticeable turnaround in consumer behavior.

    Lithium is one of the indispensable raw materials for e-mobility. Although there are enough deposits of the white metal on the planet, suppliers of the raw material are unable to meet the current high demand from the automotive industry. As a result, the price of lithium is rising sharply, reaching a new 5-year high of CNY 165,000 per ton of lithium carbonate.

    Lithium extraction from hard rock projects fails because of many technical obstacles and the lack of refining capacity. Building new smelter costs between USD 300-500 million and is not viable for most smaller deposits. Standard Lithium of Arkansas, on the other hand, sits on a brine production area. The Company is currently focused on the immediate development of its flagship 3.14 million ton LCE resource-indexed joint venture project with Lanxess. The region in question hosts North America's largest area with more than 50 years of commercial production, significant infrastructure, abundant, low-cost electricity and access to water. The project is already permitted for extensive brine mining and processing activities.

    Standard Lithium shares are feeling this demand-pull in the share price, increasing tenfold at its peak over the past 15 months. The stock is trading up an outstanding 380% for the year. In terms of valuation, the Standard Lithium share with a market capitalization of just under CAD 1.4 billion is certainly no longer a bargain. However, speculative investors will undoubtedly have fun with the volatile share.

    Meta Materials - It is all about the surface

    Another interesting player in the high-tech materials sector is Nova Scotia-based Meta Materials Inc (META®). The nanocoatings specialist produces a range of highly functional materials for cutting-edge industrial applications. The Company's proprietary technology platform includes three core competencies: holography, lithography and wireless sensing with strong IT networking and artificial intelligence (AI) embedding.

    Meta Materials focuses on extremely thin nanoscale coatings that have novel optical, physical and magnetic properties. Since these are not found in nature, these technologies take us into entirely new spheres. For example, special coatings can be used to direct light around certain objects to change the refractive index into the negative. In this way, military vehicles can be camouflaged, or optical perceptions can be altered.

    Since Meta Materials, with its future-oriented positioning, fits very well into the most modern high-tech applications, there was real hype around the stock at mid-year, with a market capitalization of more than USD 6 billion. The operating figures, however, are still not very meaningful. In the second quarter, the net loss reached USD 5.18 million on revenue of USD 624,320. This is not unusual because every free dollar currently flows into new ideas and patenting. These have to be pre-financed accordingly until finally, market-ready products can be brought to market. META® has thus had a broad and growing portfolio of intellectual property, patents and trademarks since its foundation.

    The META® share is listed on Nasdaq and German stock exchanges under the symbol MMAT. It is very volatile and trades with good volume. On Nasdaq, the daily turnover is usually more than 5 million shares. The appearance of CEO George Palikaras on October 14 at the "International Investment Forum" could also be an exciting event. The share has been one of the tech shooting stars of 2021 since its launch.

    Varta - The great wait for V4Drive

    At Varta, the suspense goes on a bit longer. When will the new battery be introduced to the market, and will it deliver what it promises? As the market leader, Varta is already earning a lot of money with its small lithium-ion round cells called CoinPower. Now the battery manufacturer wants to head for the next growth market and, according to CEO Herbert Schein, bring a lot of performance to e-mobility. To do this, the Group is reverting to a principle that has already been successfully practiced: introducing real innovations into existing industrial manufacturing designs.

    Intelligent battery solutions are the key to success in electromobility today. High energy density, ultra-fast charging capability and maximum flexibility in design are in demand. With the V4Drive high-performance battery, Varta already has the product on the drawing board. According to management, however, the first deliveries are not likely to come off the production line before 2024.

    We had last seen the Varta share at a low of EUR 111, then the sentiment jumped back to buy, and just 2 days later, the share was again over 10% higher. We recently successfully recommended the zone of EUR 100 to EUR 115 as an entry zone, which worked well. We are extremely satisfied with the current fluctuation behavior from a trading point of view, but also sell it courageously above EUR 130. Because as long as the V4Drive does not come, we will not miss much fundamentally.


    The investment theme of high-tech materials in the large context of renewable energies and e-mobility has become a perennial favorite for investors willing to take risks. In some cases, however, valuations have already advanced decently. Standard Lithium, Varta and Meta Materials are analytically highly valued but are always on the buy list in cyclical uptrends.


    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

    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 Juliane Zielonka on September 30th, 2022 | 10:59 CEST

    Biogen, XPhyto, BioNTech: Alzheimer's disease, depression, cancer - Pharma for life

    • Biotechnology
    • Pharma
    • Investments
    • Technology

    About 350 million people worldwide are affected by depression, a disorder of the brain. Each person also has a 16 to 20% chance of becoming depressed. Reason enough for the Canadian Company XPhyto Therapeutics to research a drug that is not addictive and can defeat the mental health-related medical condition. This week, Biogen, among others, achieved a breakthrough with an active substance against Alzheimer's disease. And if you follow the Bundesliga closely, you may be aware of the cases of testicular cancer among the players. Now BioNTech senses a new opportunity...

    Read

    Commented by Fabian Lorenz on September 29th, 2022 | 13:17 CEST

    Up to 200% share price potential: Kion, BioNTech, Aspermont in analyst check

    • Technology
    • Biotechnology
    • Investments

    The profit warning was a shock for Kion shareholders. Accordingly, the share price halved to EUR 20 in September alone. Now analysts are also slashing their estimates. The price targets for the forklift manufacturer are falling accordingly. Berenberg surprises with a high price target for the BioNTech share. At the same time, the analysts emphasize their hope for a continued generous dividend. Shareholders could thus be kept in good spirits until the next blockbuster. The roadshow of Aspermont in Germany has probably also created a good mood. At least the share price has jumped. The current consolidation could be an entry opportunity. Analysts see a price potential of over 200%.

    Read

    Commented by Carsten Mainitz on September 29th, 2022 | 12:01 CEST

    Verbio, Kleos Space, KWS Saat - This news is moving share prices!

    • Space
    • Technology
    • Investments

    Increased uncertainties in geopolitics, rampant inflation with exploding commodity and energy prices, and higher interest rates are making it increasingly difficult for companies to meet the forecasts they issued at the beginning of the year. Recent examples include battery manufacturer Varta and real estate financier Hypoport, which had to withdraw their annual targets. In addition, however, a number of companies have been able to surprise on the upside despite all the challenges.

    Read