Close menu




March 23rd, 2021 | 13:56 CET

Varta, Rock Tech Lithium, Millennial Lithium - all signs point to growth

  • Lithium
Photo credits: pixabay.com

Electromobility and technology are inextricably linked to the topic of energy storage. Leading scientists predict lithium batteries and lithium-ion batteries will continue to dominate this decade. Market experts predict a fivefold increase in lithium demand by 2025. In this context, it is becoming increasingly important that lithium deposits outside China are developed to create the greatest possible security of supply. We introduce you to two companies that could become important lithium producers in the future. We also take a closer look at Varta's plans to enter the e-mobility market. Who is the most significant yield driver for your portfolio?

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: DE000A0TGJ55 , CA77273P2017 , CA60040W1059

Table of contents:


    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

    Full interview

     

    VARTA AG - the next growth spurt?

    In mid-February, Varta disappointed many market participants with its preliminary figures for the past fiscal year and its subdued outlook. One month later, the Group published new, ambitious growth plans, which boosted the share price significantly in the short term. At the current price level of around EUR 131, the Swabians are valued at EUR 5.3 billion. The share still has a gap of EUR 50 to the interim high reached at the beginning of the year.

    On March 16, the Group announced its intention to enter the production of batteries for electric cars. The new cells are to be produced on a pilot line at the Ellwangen headquarters by the end of the year and then be used in vehicles in the premium segment. According to press reports, talks are already underway with several automakers. The Company, which has so far generated high profits based on its strong market position in microbatteries, which are used in wireless headphones, is expanding its business activities. Whether Varta can transfer its technology and innovation leadership in the area mentioned above remains to be seen.

    With the announced strategic step, Varta now delivers a new growth story. However, this step is also associated with risks. The market is highly competitive and many Asian players have secured a strong market position alongside Tesla. But no opportunity comes without risk. If Varta succeeds in forging one or more good partnerships, the Group will be opening a new and exciting chapter of growth.

    ROCK TECH LITHIUM INC - on the way to becoming a producer

    Lithium shares have developed phenomenally in recent months. This is also true for the shares of the Canadian Rock Tech Lithium. Rock Tech Lithium owns a property in the Georgia Lake area in Ontario. Lithium mineralization was discovered here as early as the mid-1950s and explored in subsequent years. In 2009, Rock Tech Lithium acquired the licenses and continued developing the project, including several drilling campaigns to date.

    The Company's primary goal is to become an integrated supplier of lithium and enter production in 2023. A central component of the project is the construction of a lithium hydroxide converter in Saxony-Anhalt. With this dedicated chemical plant, the Canadians aim to become an integrated producer of battery-grade lithium hydroxide and a strategic partner for the electric vehicle and battery storage industries in Europe. The Company's proximity to Germany and Europe is multi-faceted.

    For one, the Chairman of the Board is German Dirk Harbecke, who spoke at length about Rock Tech Lithium's growth plans in an interview with kapitalerhoehungen.de earlier this month. But directors and advisors are also European industry experts. A few months ago, well-known German investor Christian Angermayer also invested in the Company through his family office. The inflow of funds will be used for further project stages.

    On the way to production, a pilot plant is to be built, providing proof of concept. Given a multiplying demand for lithium in the next few years and the need for a supply source outside China that is also sustainable, the Canadians are playing excellent cards. With a current market capitalization of CAD 290 million, the Company is still far from reaching its zenith if the next growth steps are implemented successfully.

    MILLENNIAL LITHIUM CORP - powerful capital injection received

    Millennial controls over 20,000 hectares of prime land in the heart of South America's famed "Lithium Triangle," home to the world's most prolific lithium deposits. The Company is advancing two lithium projects to a production decision in Argentina.

    The quality and prospects of the projects attracted prominent investors, including Sprott Capital Partners, in February. A total of 8.625 million share certificates at CAD 4 were placed, representing a volume of a considerable 34.5 million. The project is to be further developed with the inflow of funds. Production is expected to start at the Pastos Grandes project in two years. Companies operating in the region include SQM, Albemarle, Livent Corp. and Orocobre.

    In January, the share price was at a high of CAD 5.20. Currently, at prices of around CAD 3, the Company is valued at around CAD 300 million. With its bulging coffers, Millennial can now focus on production. Two years is a manageable period of time. Then the share price should be significantly higher.


    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

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



    Related comments:

    Commented by Stefan Feulner on September 21st, 2022 | 13:41 CEST

    Rock Tech Lithium, Edison Lithium, Albemarle, Allkem - Defying the recession

    • Mining
    • Lithium
    • Commodities
    • Electromobility

    Fears of a global recession continue to grow, with prices for commodities such as copper, lumber, cotton and even grains correcting sharply. In contrast, the lithium price continues to hold at a high level after the explosive rise at the beginning of the year. The reason for this is the continued strong demand from the electric car industry. In China alone, sales of electric cars amounted to 3.2 million units last year, and 5 million vehicles are expected to be delivered this year. In contrast, the existing supply of lithium resources is scarce. In addition to existing producers, the primary beneficiaries of this shortage are the exploration companies, which have already been able to secure attractive properties.

    Read

    Commented by Stefan Feulner on September 14th, 2022 | 15:17 CEST

    BYD, Altech Advanced Materials, Varta - Breakthrough in the battery market

    • Battery
    • Lithium

    Electromobility is considered a key technology in the transformation of the transport sector. In 2021 alone, the number of new registrations and the market share of battery-powered vehicles more than doubled. In addition to the charging infrastructure, efficiency plays a decisive role in the expansion of e-cars. Another obstacle to rapid growth is likely to be the shortage of lithium, an essential raw material for the production of lithium-ion batteries, due to the high demand. A German company is about to start a revolution with new innovative technology. The main component of the new battery is regular table salt, which is available in extremely large quantities and is produced in highly diversified regions.

    Read

    Commented by Carsten Mainitz on September 14th, 2022 | 13:24 CEST

    Aspermont, Allkem, K+S - Shares for the fast lane

    • Digitization
    • Fintech
    • Lithium

    We are living in turbulent times on the stock markets. War, energy crisis and inflation are shaping the moods of market participants. Anticipatory action and understanding the "big picture" and the long-term correlations between supply and demand are part of a stock market trader's toolkit. Exaggerations and understatements are part of the package. There is no getting around shares as a long-term form of investment. Because as stock market veteran André Kostolany said, "If you want to eat well, buy stocks; if you want to sleep well, buy bonds."

    Read