July 14th, 2022 | 12:17 CEST
The trend is here to stay: BYD, Meta Materials, JinkoSolar
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"[...] 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
BYD: Economic worries are coming through
The uncertainty is great. In fact, it cannot be ruled out that the ECB will make the wrong decision in a few days. Why? On the one hand, growth is already slowing; on the other, inflation threatens to feed on itself and keep rising. Whether the ECB sticks with the announced small interest rate step or surprises everyone after all - criticism will be loud. Investors could conclude that instead of the media trivia, it is those trends that endure that matter. Sustainability is one such megatrend. Electromobility is one sub-sector that promises significant growth.
BYD's stock has been an investor darling over the past few years. The Chinese now build good cars, have a platform open to other manufacturers, and manufacture their own batteries and parts of the chips they need. In times of scarcity, such a setup provides good arguments for investors. But recently, the stock has come back. Concerns about a recession have also hit BYD. For an automaker that now wants to gain market share, an economic downturn could be fatal. However, if the stock stabilizes above EUR 35, it could avert the worst once again. But this also depends on a tailwind from the overall market.
Meta Materials: New project, full coffers
Meta Materials is currently largely independent of the overall market. The NASDAQ-listed Company focuses on ultra-thin materials with innovative physical properties. So far, Meta Materials has been involved in projects such as antennas integrated into glass panes and stealth systems for the defense industry. Now the coatings and metamaterials specialist also wants to break new ground in the field of batteries for electric cars. With the Company Coulometrics, Meta Materials wants to make batteries for e-cars safer and more powerful.
"With the recent strategic acquisitions of Plasma App and Optodot, combined with our roll-to-roll thin film coating production facility in Quebec, we now have the capability to make Li-ion batteries safer and more efficient," said George Palikaras, President and CEO of META. "We are pleased to partner with Coulometrics, a world-class battery developer. By leveraging Dr Buiel's 28 years of experience and his state-of-the-art materials synthesis and battery assembly facility, META and Coulometrics will work together to develop and test the safety and performance of our new battery technologies. We believe it will enable a new generation of safer lithium-ion batteries." With the collaboration, Meta Materials is expanding its scope to be active in even more areas. A few weeks ago, the Company closed a USD 50 million financing. While that weighed on the share price, it should put the Company in a good position to move its technology forward. The stock is speculative, but Meta Materials has several irons in the fire. Recession fears should no longer have much of an impact on the share once the financing round is complete.
JinkoSolar: Special boom for this share
JinkoSolar should also benefit from a special boom. The Chinese company is a leader in PV modules and supplies essential products for the energy transition. Many tradespeople are currently hard-pressed for orders for energy-efficient renovations or new heating systems. JinkoSolar is well-positioned as an innovation leader and price breaker. However, the share could be burdened by the trend toward redundant supply chains and the general supply situation - many European customers would like to buy but cannot. The stock is in an intact uptrend despite the disruptive fires.
While JinkoSolar is the first port of call for many investors in times of energy transition, the market is already more skeptical about BYD. Detached from current recession fears, Meta Materials is being traded these days. The Company is in an early stage and has various projects related to different industries. The latest cooperation on batteries for electric cars fits seamlessly into the list of possible application areas.
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