Close menu

November 4th, 2021 | 15:10 CET

Varta, Manganese X Energy, Standard Lithium: Battle for the best battery!

  • Electromobility
Photo credits:

Just after the general elections, it was back - the battery fantasy! Whatever the outcome of the formation of the government, all parties involved have shown a high level of commitment to sometimes drastic steps towards climate protection. Electromobility is becoming increasingly crucial for the energy transition in transport. And with it, the research, development and production of drives, batteries and components. In this context, suppliers of battery raw materials and product developers are enjoying a great deal of attention. The triumphant march of Tesla shares continues to pull on the entire sector. Which stocks are ahead?

time to read: 4 minutes | Author: André Will-Laudien

Table of contents:

    Uwe Ahrens, Director, Altech Advanced Materials AG
    "[...] We know exactly what we are doing and are implementing what we consider to be a proven technology in an industrially applicable and scalable way. [...]" Uwe Ahrens, Director, Altech Advanced Materials AG

    Full interview


    Varta - Waiting for an update from Ellwangen

    Ellwangen-based Varta AG is on track with very ambitious battery development goals. With a production volume of more than one billion units per year, Varta has so far dominated the market with its micro-batteries for hearing aids and headsets. At the beginning of the year, the battery manufacturer decided to tackle the next, much larger growth market of e-mobility. Of course, this project will not be realized overnight because high development costs are the first step before potential sales.

    The high-tech Company could not meet market expectations with its latest figures, although the share price had also risen to EUR 165 in the run-up. This time, the recovery after the September price slump to EUR 110 was not quite as rapid, and the 200-day line at just over EUR 130 was the end. In the meantime, a 20% trading corridor between EUR 110 and 135 has been established - more is not possible for trading.

    On November 11, the time will come again: Varta will report on the 3rd quarter of 2021. Investors had already experienced in February, when the share price plummeted by 40% from EUR 180 to EUR 105, that smaller disappointments can lead to a larger price drop. It was similar to the half-year figures, but the movement was from EUR 165 to only EUR 115. The last purchase at EUR 110 was recently stopped out at EUR 128.50. Currently, one should be able to confidently wait for the latest figures and an update on the outlook for Varta.

    Manganese-X Energy - The cobalt substitute is becoming increasingly important

    Warehouses seem to be running dry throughout the raw materials sector if buyers from the high-tech industry are to be believed. Especially the traffic jams in front of the ports lead to further losses in the just-in-time delivery cycle of the industry at the suppliers and large OEMs. Battery-relevant metals such as lithium, cobalt, graphite and manganese are currently very difficult to obtain. That leads to price exaggerations in the spot market that can hardly be explained compared to the shorter history. Some market participants, e.g. in the construction sector, are reporting increases in the purchase prices of raw materials of up to 70%. Price calculations considered to be in line with the market at the beginning of the year are now absurd.

    The raw material manganese is also in extremely short supply, but its oxide is an indispensable component of lithium-ion batteries and other energy storage systems. For the automotive industry, this situation, if it persists, could become a showstopper. Already, buyers of certain models are waiting a few months longer for delivery than the salesperson at the table had calculated. The bottleneck is again the Middle Kingdom; here, an export ban has even been imposed for strategic metals in the interim.

    A new supplier for manganese could be the Canadian Company Manganese X Energy Corp. It is currently the only listed manganese company in Canada and the United States striving to commercialize a promising manganese deposit. Strategically, it has set its sights on bringing its Battery Hill project into production. In the emerging e-mobility market, growth rates of over 30% per annum are expected in the next few years, making the opening of new mining and processing sites profitable.

    From a sustainability perspective, cobalt is to be replaced in the long term, and more climate-friendly processes for raw material processing are to be introduced. Subsidiary Disruptive Battery Corp. is on a mission to develop an HVAC (Heating, Ventilation and Air Conditioning) air purification system for cleaner, healthier air that will mitigate COVID-19 and other contaminants on surfaces, and in the air. Manganese X joined the newly formed Battery Metals Association of Canada (BMAC) trade organization in October.

    Manganese X Energy shares are still barely discovered and can currently be ordered for CAD 0.32. With around 124 million shares, the Company weighs in at just EUR 39 million. A lot of future for a small investment - a suitable addition for progressive thinking investors.

    Standard Lithium - Up and away

    Standard Lithium (SLI) started as a EUR 30 million company a few years ago and has consistently continued its strategic build-up to become a battery raw material supplier. Together with German specialty chemicals company Lanxess, SLI is focused on the rapid development of its flagship 3.14 million ton indicated LCE resource property located in southern Arkansas. This region hosts North America's largest brine-producing area with more than five decades of commercial production opportunity, existing chemical processing infrastructure, and abundant, low-cost electricity, and access to water sources.

    Standard Lithium's share is one of the shooting stars among e-mobility stocks, gaining a full 680% over 12 months alone. The market capitalization developed to about USD 1.7 billion during this time. Despite the strong increases, the share is not coming to rest. The share price has doubled again since a month ago, and the analysts' former price targets have long since been reached.

    This is how things can go when an interesting project comes onto the market at the right time, and investors are willing to look past the several-year gestation period and high financial investment of a lithium production plant.

    The strong trend toward climate protection is driving the topic of e-mobility into new dimensions. Car manufacturers, suppliers and raw material companies are pulling together, but the supply situation is complex. Varta and Standard Lithium are already a few years down the road in their development, and the still unknown Manganese X Energy can develop just as rapidly.

    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 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 André Will-Laudien on September 30th, 2022 | 12:36 CEST

    Higher, faster, further: BYD, Infinity Stone, Porsche, Varta - The energy transition stock portfolio is wanted!

    • Mining
    • Gold
    • Electromobility
    • GreenTech

    The words "energy turnaround" are used a lot in public. The majority understand it to mean the use of GreenTech to generate energy while avoiding dangerous climate gases. Unfortunately, the leaks from the Nord Stream 2 pipeline, which is not in operation, are leaking the amount of gas into the atmosphere every day that the state of Denmark consumes in an entire week. This makes us painfully aware of how strongly warlike actions counteract efforts to save the climate. On the stock market, it is important to turn our gaze away from current events and toward a more peaceful future, where good ideas for sustainable change will also be rewarded. Which stocks belong in the portfolio?


    Commented by Juliane Zielonka on September 29th, 2022 | 10:57 CEST

    Barsele Minerals, K+S, BYD - Sweden as a crisis winner?

    • Mining
    • Gold
    • fertilizer
    • Electromobility

    Due to the explosions in the Baltic Sea pipelines Nord Stream 1 and 2, a switch to other energy sources is inevitable, especially for German industry. Fertilizer producer K+S, based in Kassel, is affected by this. The situation is different with Barsele Minerals. The Canadian company is exploring large gold areas in sunny Sweden and plans to mine up to 3.5 million ounces of the precious metal in the future. Electric car and battery manufacturer BYD, on the other hand, has sufficient resources in its home country of China and is preparing to make the leap into the European market. Find out here which shares are now defying the crisis.


    Commented by Fabian Lorenz on September 28th, 2022 | 11:22 CEST

    Time for bargain hunters? Plug Power, Varta and Pathfinder Ventures

    • Investments
    • Camping
    • RV
    • Electromobility

    Growth stocks are currently under particular pressure. But this can also create opportunities for bargain hunters. Perhaps in the case of Varta? The share has crashed sharply after a profit warning. Now, the first analyst has upgraded the share from "sell" to "buy". But even his reasoning does not sound like a new growth story. Plug Power also tends to live on the hope of growth. While the new production facility is technically a milestone, it needs more. In contrast, things are going well at Pathfinder Ventures. The still unknown tourism company is profiting from the camping boom in North America, and its valuation is anything but expensive.