Close menu




September 3rd, 2021 | 10:39 CEST

Strong performance by Nel ASA, Defense Metals and JinkoSolar

  • RareEarths
Photo credits: pixabay.com

The German parliamentary elections are on September 26. Climate protection is at the center of most political parties' election programs. The Greens are going out on a limb, aiming to achieve CO2 neutrality as early as 2035. However, it seems more than questionable whether these ambitious promises can actually be put into practice. The scarcity of raw materials such as copper, lithium and rare earth metals means a wide gap between aspiration and reality.

time to read: 2 minutes | Author: Stefan Feulner
ISIN: NEL ASA NK-_20 | NO0010081235 , DEFENSE METALS CORP. | CA2446331035 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007

Table of contents:


    Extreme dependencies

    The plan of Baerbock & Co. becomes even more improbable if, in addition to the already increasing demand for industrial metals, the dependence on China is included. At the moment, 80% of rare earth metals are mined in China. These are of existential importance for producing magnets, which are needed for electric motors and wind turbines, for example. In addition, there is high demand in the defense industry.

    Last year, the United States imported 80% of its requirements from China, and the European Union even obtained 98% from the Middle Kingdom. In order to reduce dependence on the People's Republic and prevent possible bottlenecks, the EU is working on proposals for boosting domestic production. The Biden administration is already one step ahead in this regard. In the USA, tax breaks for domestic manufacturers were recently passed.

    The Canadian Company Defense Metals is well advanced at its 1,700-hectare Wicheeda Rare Earth Project in British Columbia, producing far more cheaply than its peer group because of its world-class infrastructure. Through drill programs already completed, indicated mineral resources total 4.89 million tonnes at an average grade of 3.02% light rare earth elements (LREO) and suspected mineral resources of 12.1 million tonnes at an average grade of 2.90% LREO.

    Important Steps

    In recent weeks, Defense Metals has taken important steps toward a successful future. A significant letter of intent was signed with state-owned Sinosteel Corporation, including the design of a pilot plant and the economic and technical feasibility of full-scale mine development. In addition, at the end of last month, the completion of the construction of the platforms in steep terrain for the 2021 drilling program, which should be between 2,000m and 5,000m, was announced. These were necessary to carry out the diamond drilling program for resource expansion and delineation.

    In contrast to the fundamentally sound development, the share price corrected significantly in recent months. Currently, the stock market value of Defense Metals is only EUR 12.50 million. In the long term, a good opportunity to profit from the supply shortage.

    Cooperation with a promising future

    JinkoSolar's main subsidiary Jinko Solar Co. has signed a strategic cooperation framework agreement with Contemporary Amperex Technology Co. covering areas such as promoting carbon neutrality in the industrial chain, global development of solar-plus-storage business, and development of integrated solar-plus-storage solutions.

    The companies plan to build a new energy technology ecosystem and promote solar energy in the energy sector to contribute to the achievement of carbon neutrality. Successful testing of support at USD 40 has brightened the chart picture significantly. Next prominent resistances are expected for JinkoSolar only at around USD 60 again.

    Together for climate protection

    Nel ASA and SFC Energy also want to contribute to the decarbonization of the economy. Together, the companies want to use "already mature products and proven technologies of the respective parties as a basis for the integrated offering" in their partnership. Together they want to focus on developing industrial solutions to replace less efficient diesel generators with more efficient systems based on hydrogen fuel cells in combination with the production of green hydrogen through electrolysis. Nel ASA is also heading towards a bottom, which would be completed if the resistance at EUR 1.52 is broken and would generate a buy signal.


    Climate protection plays an important role in the election campaign. In this context, the scarcity of the required raw materials such as rare earth metals is underestimated by politicians. Defense Metals maintains a promising project outside China. The correction of the Norwegian hydrogen specialist Nel ASA is about to be completed. JinkoSolar offers an interesting trading opportunity at current levels.


    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

    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 July 4th, 2022 | 12:12 CEST

    Defense Metals, Nordex, Rheinmetall - The world does not work without rare earths

    • RareEarths
    • Defense

    Even if many people do not know much about the term rare earths, every one of us uses them. Without rare earths, there would be no smartphones, no wind turbines, no solar energy, cars and other high-tech devices. China has a virtual monopoly on rare earths. We first saw what would happen if China stopped supplying rare earths in 2010 when Japan stopped receiving supplies for a month. Prices for products containing rare earths shot up by a factor of 10. For this reason, the raw material also appears on the list of strategic metals in the USA and Europe. The EU plans to present the Raw Materials Act this fall to reduce dependence on China for critical raw materials.

    Read

    Commented by Fabian Lorenz on June 30th, 2022 | 12:44 CEST

    BYD on board with Apple? Rebound at Nordex and Defense Metals?

    • RareEarths
    • Electromobility

    The end of the combustion engine is the next driver of electromobility and thus also of renewable energies. After all, the electricity for e-cars has to come from somewhere. The EU has agreed to ban the sale of diesel and gasoline-powered cars from 2035. That should give further impetus to carmakers like BYD. This is just one of the many good news stories from the Chinese group. In the future, it is reportedly known that it will supply Apple. But from a chart perspective, investors need to pay attention. Nordex also has to be careful not to miss the boat with the competition. To this end, the wind turbine manufacturer has raised fresh capital. Both electromobility and wind and solar technology need selenium earths. And Defense Metals is benefiting from this.

    Read

    Commented by Stefan Feulner on June 22nd, 2022 | 11:22 CEST

    New opportunities in the supercycle - Glencore, Defense Metals, NIO

    • Electromobility
    • RareEarths

    Concerns about a further sharp rise in inflation sent the stock markets into a tailspin in recent weeks. The main reason for the enormous inflation was exploding energy and commodity prices. In addition to crude oil and natural gas, metals important for industry, such as copper and rare earth metals, are currently correcting. This should again offer an opportunity to participate in the supercycles in the long term.

    Read