Close menu




April 8th, 2021 | 09:32 CEST

Volkswagen, Rock Tech Lithium, NIO - It is getting dramatic for Germany!

  • Lithium
Photo credits: pixabay.com

Metal processing industries and steel manufacturers in Germany are increasingly reporting delivery problems and rising costs resulting from significantly increasing raw material prices. Due to the strong growth in demand resulting from the energy transition, it is becoming increasingly difficult to secure the supply of raw materials in the long term. The dependence on China, which currently has a virtual monopoly on many metals, has been evident for a long time. As early as 2008, the then German President Horst Köhler called for a raw materials strategy for the Federal Republic. Little has happened since then, but the bottleneck is steadily approaching. According to the motto of a former SPD politician: "Germany is doing away with itself."

time to read: 3 minutes | Author: Stefan Feulner
ISIN: DE0007664039 , CA77273P2017 , US62914V1061

Table of contents:


    Rock Tech Lithium - The supplier for Germany

    The sales figures of electric car manufacturers are exploding. In addition, new players are entering the market all the time. The disruption of combustion engines by electric cars has picked up speed. In order to reduce dependence on China, the European automotive industry is thinking ahead and is now planning to build battery cell factories to secure the value chain. What is still missing, however, is the raw material lithium. Currently, 80% of this is mined in China and processed into battery-grade lithium carbonate or hydroxide. On the one hand, as the world's largest e-car market, China needs an enormous amount of lithium; on the other, there is a trade war between the Middle Kingdom and the USA. China uses raw materials such as rare earth metals as political leverage.

    The cry for European lithium refineries is getting louder and louder. However, even these will not run if there is not enough raw material, i.e. lithium. The Canadian Company Rock Tech Lithium has a solution for two problems and wants to become Germany's lithium supplier for the automotive industry. Rock Tech Lithium could serve the entire value chain. The Company's own lithium sulfate mine in Ontario, Canada, can now be put into production thanks to the capital increase in January. The mined raw material is to be processed into lithium sulfate while still in Canada and further processed into lithium hydroxide in a converter, which will then be the first in Europe. In this way, it will be possible to keep transport costs and environmental pollution low. A first converter could produce 24,000 metric tons of lithium hydroxide per year, corresponding to around 500,000 car batteries.

    The state of Saxony-Anhalt in Eastern Germany is favored as a location because of its high production rate. Another advantage would be its central location in Germany's middle and the proximity to Tesla's Gigafactory in Grünheide and BASF's new cathode factory in Schwarzheide. Rock Tech Lithium has big plans! Thus, it should not stop at the first converter. More are already planned for the next few years.

    According to the Company, the annual production of one converter of 24,000 tons of lithium hydroxide would be equivalent to a turnover of EUR 250 million and, according to the Company, a profit of EUR 40 million. The stock market value of Rock Tech Lithium is currently just under EUR 185 million.

    Volkswagen AG - In the fast lane

    Volkswagen is stepping on the gas. While 230,000 all-electric cars were sold last year, the Wolfsburg headquarters is planning on sales of 800,000 in 2021, which would mean they would replace Tesla as the world market leader earlier than forecast. In general, the estimates made last year have been thrown overboard in favor of electromobility. Instead of two cell factories, a total of six are now to be built throughout Europe. Production capacity is to be expanded to 240 GWh per year by 2030. By then, 70% of the cars produced will be fully electric.

    In addition to their production, the Germans also want to benefit from the knowledge of their holdings. For example, Volkswagen has held a stake in QuantumScape, a specialist in the field of solid-state batteries, for years. Following a successful series of tests, the investment has now been supported with a further USD 100 million. For VW, solid-state batteries, scheduled to start joint production in 2025, offer two significant advantages. First, solid-state batteries' energy density is higher, meaning electric cars equipped with them have more range, and second, they are said to be faster to charge.

    NIO - Extreme growth

    The Chinese e-car manufacturer NIO had to contend with supply bottlenecks for microchips and semiconductors. In Hefei, China, the AC-NIO plant had to be closed for 5 days from the end of March because of these supply bottlenecks. However, this did not yet have any impact on the figures for the first quarter. NIO delivered 20,600 units, a growth of 423% compared to the same period last year. In March alone, there were 7257 vehicles. In comparison, NIO ranks second in the sales charts in March behind undisputed industry leader BYD with 23,386 units, ahead of competitors XPeng (5,102 units) and Li Auto (4,900 units).

    NIO operates a battery-as-a-service model in China: Instead of charging the electric cars' battery, drivers can have it exchanged for a full battery within a few minutes at one of now almost 200 battery exchange stations.


    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 Stefan Feulner on May 24th, 2023 | 08:20 CEST

    Allkem, Grid Metals, Rock Tech Lithium - Gigantic movements

    • Mining
    • Lithium
    • Batteries
    • Electromobility

    It is called the white gold. Lithium-ion batteries are currently the most widely used energy storage devices in electric vehicles. The soft alkali metal offers high specific energy, which means it can store a lot of energy per unit weight, which enables electric vehicles to have a greater range. Due to the growing demand resulting from the transformation in the transport sector, there is a disproportionate demand for the critical raw material. Supply, on the other hand, is severely limited.

    Read

    Commented by Nico Popp on May 17th, 2023 | 08:10 CEST

    Heat pump madness and grid expansion: Vonovia, JinkoSolar, Grid Metals

    • Mining
    • Commodities
    • Lithium
    • Copper
    • Nickel
    • renewableenergies
    • Energy

    A few weeks ago, Federal Economy Minister Habeck and Saxony-Anhalt Prime Minister Haseloff broke ground for the "SuedOstLink" converter. From 2027, wind energy will flow over the route to Bavaria for the first time. But the north-south connection is only part of the solution. Experts are sounding the alarm and consider massive investments in "the last mile" to be necessary. We take a look at what lies ahead and which companies could benefit.

    Read

    Commented by Armin Schulz on May 17th, 2023 | 07:40 CEST

    Plug Power, Almonty Industries, Rock Tech Lithium - Exploiting shortages

    • Mining
    • Tungsten
    • RareEarths
    • Lithium
    • Electromobility

    The Ukraine conflict has shown how dependent Europe is on Russian energy exports. In the future, green hydrogen should close this gap. However, the dependence of Western countries is not limited to the energy market. There are several critical raw materials for which the majority of the supply comes from China. Rare earths and tungsten are particularly noteworthy. Tensions between the US and China are increasing due to the Taiwan dispute and the activities of the BRICS countries. There are also shortages of refined lithium in electromobility, i.e. lithium carbonate and lithium hydroxide. If investors want to profit from these shortages, they should bet on companies that are not caught between the fronts.

    Read