Rock Tech Lithium, Noram Lithium, JinkoSolar: Investing in Tesla's neighbors
Electromobility and renewable energies are the hot topics of the moment. Only yesterday, the Tesla rival Rivian made a brilliant stock market debut. VW, too, announced that it wants to make even greater inroads in the field of electromobility. All these plans create a market worth billions for the automotive suppliers of tomorrow. At the same time, governments are doing everything they can to support the new lithium and battery supplier industry, creating significant opportunities for investors. We highlight two lithium stocks and look at a company that is winning the fuel of the future.
ISIN: ROCK TECH LITHIUM | CA77273P2017 , Noram Lithium Corp | CA65542K1030 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007
Rock Tech Lithium: German-Canadian success story
When Rock Tech Lithium's share price first started to soar at the beginning of the year, only a few people in the know were aware of the value. The Company wants to mine lithium in Canada. The precious element will be extracted from the earth's surface rather than from brine. This procedure alone is considered much more environmentally friendly than the lithium competition from South America, whose production is at the expense of the water reserves there and is not without controversy. Rock Tech intends to process the lithium obtained in this way and is relying on German engineering skills. In Brandenburg, the Company is planning a processing plant just 60 km from Tesla's Gigafactory. When the Company announced this news at the beginning of October, the share price was unstoppable and doubled within a very short time. But what has happened since then?
The share has consolidated and reached a level below the EUR 5 mark that could be interesting again. However, the share is still highly volatile. But that is not surprising given the history. There are still many investors sitting on large book profits or latecomers who are losing patience with crumbling prices. If follow-up buyers are scarce in such phases, things can continue to go down. In the long term, however, Rock Tech appears promising, as the Company is already focusing on recycling lithium - from 2030 onwards, it should no longer be possible to operate mines. The Company has already forged collaborations around recycling and is showing innovation. Although this does not help the share price in the short term, it provides hope again in the medium term.
Noram Lithium: The following weeks will be decisive
One Company that must be considered a laggard compared to Rock Tech Lithium is Noram Lithium. The Company operates the Zeus lithium project in Nevada's Clayton Valley and aims for an initial production economic feasibility study (PEA) later this year. The project's current resource estimate includes 363 million tonnes of rock grading at 923 ppm as an indicated resource and 827 million tonnes at 994 ppm lithium as an inferred resource. Noram Lithium's long-term goal is to produce at low cost and sell its lithium within the US and to Europe and Asia.
The stock has recently benefited from US President Joe Biden's infrastructure plan, which includes renewable energy and sustainable propulsion support. There is speculation in the USA that around USD 7 billion could flow into electromobility. Securing domestic lithium deposits could be of additional strategic importance in this context. As the lithium price has risen sharply recently and supply is tight, there are great opportunities for prospective projects such as Noram Lithium. The conditions appear favorable with the Zeus Lithium project in Nevada being close to Tesla's Gigafactory and Albemarle's Silver Peak, a lithium mine producing for decades, also not far away. Noram Lithium also owns its project 100%, and there are no concessions for other parties, such as royalties. With a market capitalization of around EUR 39 million, the Company is also not expensive. The expected details on the economic feasibility could give new momentum to the Zeus Lithium project and attract further investors. The general conditions appear favorable.
JinkoSolar: China worries weigh on the Company
The situation is also favorable for JinkoSolar - renewable energy is in demand and is being promoted worldwide. JinkoSolar is also known for good quality and a high degree of efficiency. But what does the share do? On a one-year view, the value has lost about 11.4%. In recent months, China's worries have been an additional burden. When investors pull shares out of a region on a large scale, the good companies are also punished. Investors have to take this country risk into account. The flip side, however, is the opportunity for cheap entry - in the long term, however, investors cannot avoid a company with the market position of JinkoSolar. However, the share will no longer be a multiplier.
Where the journey with lithium shares can go, stocks like Rock Tech and others have shown. Noram Lithium is just getting ready to follow in their footsteps, benefiting from Biden's infrastructure program and facing important corporate news. JinkoSolar, on the other hand, is a conservative pick with a bit of China exposure. Both cautious and opportunity-oriented investors should not ignore shares around electromobility and renewable energies - the potential is too great.
Commented by Nico Popp on February 1st, 2023 | 18:14 CET
Scholz on lithium trip in South America - Who benefits? BYD, Saturn Oil + Gas, American Lithium
China has been active in South America for years and has put out feelers for raw materials. But first movers are not always rewarded. German Chancellor Olaf Scholz has now been to Chile and made the country an extremely attractive offer. We take a detailed look at what it is all about and how investors can deal with the news.
Commented by Fabian Lorenz on January 31st, 2023 | 14:48 CET
Energy transition price rockets: American Lithium, Plug Power, Auxico Resources
Are shares related to electromobility among the price rockets of 2023? In any case, the start of the year was promising. After a partially disastrous second half of 2022, many stocks are showing strength in the new year. Lithium shares, in particular, are in demand again. Among the high flyers of recent months is American Lithium. After the Nasdaq listing and the planned spin-off of the uranium division, investors are eagerly awaiting the feasibility study. Will the share price fireworks continue? Analysts also expect such fireworks at Auxico Resources. They believe that the share price of the trader of rare earths and critical raw materials could almost triple. Hydrogen pioneer Plug Power has also bounced back in the new year. But once again, the US company has disappointed operationally. How do investors react?
Nordex, Manuka Resources, American Lithium - The profiteers of scarcity
Besides the raging war in Ukraine, the discussion about the energy industry of the future accompanies us daily. It has already been decided that renewable energies such as wind power and photovoltaics will be the way forward. Likewise, the move away from the internal combustion engine to battery-powered electric motors is in the bag. But the implementation problems will be with us over the next few years. Where will producers get the raw materials that are already in short supply? Another critical issue is energy storage. Here, too, there is an increasing demand for a raw material that is currently produced primarily in Russia and China.