Transformation in full swing: Altech, Volkswagen, and Bayer focus on new technologies and markets

Altech Advanced Materials focuses on innovative battery technologies for the energy transition and e-mobility

Shortly after the start of the Olympic Games, the residents of Paris had to experience what it means when the power goes out. The citizens of the French capital were left in the dark for hours. People and critical infrastructure facilities such as hospitals, police and fire services were also left in the dark. In order to be prepared for power fluctuations of all kinds, the market for grid batteries is growing unstoppably. Grid batteries are location-based, large-scale energy storage systems that contribute to the stabilization and long-term supply of electricity. They compensate for fluctuations between electricity generation and consumption, particularly in the case of fluctuating renewable energy sources such as wind and solar power. The market for grid batteries is forecast to grow at an annual rate of 26.5% until 2030, with an expected market volume of USD 21.2 billion per year.

The German company Altech Advanced Materials is positioning itself as a pioneer in the field of innovative battery technologies. It focuses on two business pillars: CERENERGY® and Silumina Anodes™.

• CERENERGY® is a ceramic solid-state battery for local applications. This technology based on common salt is particularly suitable for the intermediate storage of renewable energies, grid stability, and industrial applications.** CERENERGY® is characterized by its environmental friendliness, recyclability, and non-flammability.

• Silumina Anodes™ is a coated anode material for lithium-ion batteries that has been specially developed for use in electromobility. This technology promises an increase in performance of at least 30% compared to conventional anodes.** A key advantage is the ability to integrate silicon into the anode, significantly increasing energy density. As a drop-in technology, Silumina Anodes™ can be easily integrated into existing battery production lines.

Altech's business model includes the development, production and commercialization of these innovative battery technologies. For CERENERGY®, the Company plans to build a production plant in Schwarze Pumpe, Germany, with production expected to start in 2025. With a clear growth plan, Altech Advanced Materials AG will become a key player in the energy transition and the longevity of batteries for EVs. The Company believes it is well-positioned to benefit from the growing markets for energy storage and electric vehicles.

1st Half-year report 2024: Volkswagen defies challenges and focuses on electromobility

Despite a challenging market environment, the Volkswagen Group records a solid performance in the first half of 2024. With an increase in revenue of 1.6% to EUR 158.8 billion and an operating result of EUR 10.1 billion, the Company achieved a return on revenue of 6.3%. For the full year 2024, Volkswagen forecasts an increase in revenue of up to 5% and an operating margin between 6.5% and 7%.

There is a positive trend in the area of electromobility: over 317,000 fully electric vehicles (BEVs) were delivered in the first six months, with a BEV share of over 8% in the second quarter. In China, in particular, Volkswagen was able to increase its BEV deliveries by 47%. A BEV share of between 9% and 10% is expected for 2024 as a whole, supported by new model launches and a strong order situation. In Western Europe, BEV order intake has more than doubled in the same period.

CEO Oliver Blume emphasizes the positive feedback on the new BEV models and sees electromobility as the key to achieving the CO₂ targets for 2025.

However, the price for this is cost reduction, as the profitability of the current BEV generation has not yet reached the level of combustion engines. Volkswagen is working intensively on cost reductions through economies of scale, improved platform strategies, and the use of more cost-effective battery technologies. The Company is also implementing extensive restructuring measures. These include redundancy programs, particularly at the Volkswagen brand. It seems that many superfluous positions behind Wolfsburg's corporate walls will soon be shelved.

Blume emphasizes the Company's new main focus on "costs, costs and costs" as decisive for future competitiveness. Volkswagen plans to reduce total investments for the planning period 2025-2029 to around EUR 165 billion, which is below the original target of EUR 180 billion.

Bayer submits FDA approval application for new drug to treat menopausal symptoms in the US

Bayer AG has submitted an application to the US Food and Drug Administration (FDA) for approval of a new drug for the treatment of menopausal symptoms. The active ingredient Elinzanetant is intended to alleviate moderate to severe vasomotor symptoms (VMS), better known as hot flashes. Hot flashes are one of the most frequently reported symptoms of menopause. By 2030, it is estimated that 1.2 billion women worldwide will go through menopause.

The application is based on positive results from the Phase III OASIS 1, 2, and 3 studies, which showed that Elinzanetant significantly reduced the frequency and severity of hot flashes compared to a placebo. The drug demonstrated a favourable safety profile, with headaches and fatigue being the most common side effects. In plain language: less sweating but more sleepy than before, coupled with discomfort. According to Bayer, in addition to relieving hot flashes, the study results suggest that Elinzanetant could also help improve sleep disorders and the general quality of life during menopause. Whether this will be beneficial or not will depend on the future marketing of the new medication. At least the side effect of tiredness is already being directly framed as a sleep aid.

Christine Roth, a member of Bayer's Pharmaceuticals Leadership Team, emphasized the significance of the approval application: "Menopause is a natural phase in women's lives, and in the US alone, 27 million women are currently in this transition. Despite the impact menopausal symptoms can have on women's health and quality of life, many women go untreated due to a lack of information and limited treatment options." Furthermore, the natural transition often requires little to no pharmaceutical support, that is, unless she is not knowledgeable about her body.

Bayer plans to submit the data from the OASIS studies to other regulatory authorities in addition to the FDA to obtain marketing authorizations in other regions of the world. The plan may work out because, especially in the industrial world, women are so busy between family and work that they are open to a tablet that reduces possible hot flashes. Bayer shares are currently trading at EUR 27.32.

With its innovative battery technologies CERENERGY® and Silumina Anodes™, Altech Advanced Materials is strategically positioned in growing energy storage and electromobility markets. The planned start of production in 2025 and the clear growth plan indicate good opportunities to benefit from the energy transition. The technologies promise performance improvements and sustainability benefits - a business model with significant future potential. Volkswagen presents the 1st half-year results for 2024 and must improve the profitability of electric vehicles. Cost reductions through personnel savings are also on the agenda. Production is to be highly improved through progressive technologization. Bayer's FDA approval application for a drug to reduce hot flashes during menopause could open up new market potential. However, not every natural biological process requires pharmaceutical treatment. The success of this drug will depend on the Company's marketing strategy to position it precisely. TV advertising for medicines in the US is allowed, so the chances of reaching the desired target group are favourable.