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Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Dr. Thomas Gutschlag
CEO | Deutsche Rohstoff AG
Q7, 24, 68161 Mannheim (D)

info@rohstoff.de

+49 621 490 817 0

Interview Deutsche Rohstoff AG: "We can imagine additional investments in the field of electromobility."


Steve Cope, President, CEO and Director, Silver Viper

Steve Cope
President, CEO and Director | Silver Viper
1055 W Hastings St Suite 1130, V6E 2E9 Vancouver (CAN)

info@silverviperminerals.com

+1-604-687-8566

Interview with Silver Viper: Future price drivers and takeover fantasy


Karim Nanji, CEO, Marble Financial

Karim Nanji
CEO | Marble Financial
1200-1166 Alberni Street, V6E 3Z3 Vancouver (CAN)

info@marblefinancial.ca

+1-604-336-0185

Interview with Marble Financial: Fintech innovator plans expansion into the US


08. April 2021 | 09:32 CET

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 by Stefan Feulner


Dirk Harbecke, Executive Chairman, RockTech Lithium Inc.
"[...] In 2020, the die is finally cast in the automotive industry towards electromobility. [...]" Dirk Harbecke, Executive Chairman, RockTech Lithium Inc.

Full interview

 

Author

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


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.


Author

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



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

14. April 2021 | 08:18 CET | by Nico Popp

BYD, Rock Tech Lithium, Varta: The mobility revolution starts now

  • Lithium

Nowadays, when major automakers run commercials, they are almost always exclusively ads for electric cars. Even if e-cars were a fig leaf for automakers until recently, they are now getting serious. Volkswagen announced an electrification offensive weeks ago and emphasized its intention to invest massively in its supply chains, referring to battery metals and batteries. This commitment is also urgently needed - competitors from the Far East have already come a long way.

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23. March 2021 | 13:56 CET | by Carsten Mainitz

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

  • Lithium

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?

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17. March 2021 | 12:50 CET | by André Will-Laudien

Rock Tech Lithium, Varta, Volkswagen - The German battery is coming!

  • Lithium

If the statements of German board members are to be believed, Tesla is now facing a strong headwind from Europe. Tesla will invest around EUR 6 billion in the Gigafactory near Potsdam. Industry analysts estimate that the German automotive industry will invest around EUR 25 billion in the development of e-mobility in 2021 alone. The industry has woken up, leaving the sleeper car and meeting for a strategy session in the front railcar. It is time to look at stocks that can live up to this trend because they have recognized the signs of the times.

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