European investors ‘desperate’ for battery metals, prompting this German investment firm to move into Africa
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Frankfurt-based consultancy DGWA is expanding into the African mining space because European investors really want to inject cash into battery metals.
This could be good news for ASX-listed explorers and miners because DGWA has helped a number of Aussie small caps tap European investors and find profitable projects, among other things.
Pilbara explorer Artemis Resources (ASX:ARV) last year brought in DGWA to help it make the most out of its German listing.
DGWA CEO Stefan Müller, meanwhile, has investments in other ASX small caps such as European Lithium (ASX:EUR) and is on the board of companies like Jadar Lithium (ASX:JDR).
Müller told Stockhead European investors are “desperately” looking for battery industry and mobility related investments – the next “mega trend” in the market.
American consulting firm McKinsey & Company predicts big investment growth in autonomous driving, connected cars, electric vehicles, and smart mobility.
In April, McKinsey investments in new mobility start-ups had increased significantly.
“Our latest mobility start-up and investment tally shows the industry invested $US120 billion ($173.3 billion) in the last 24 months as it prepares for the years to come,” the firm said.
“Since 2010, investors have poured $US220 billion into more than 1,100 companies across 10 technology clusters.
“Investors invested the first $US100 billion of these funds by mid-2016 and the rest thereafter.”
But there are still lots of concerns around junior mining investments due to a large number of overpromoted blue sky projects, Müller noted.
“There is serious demand for investment strategy consultancy re resources investments,” he said.
DGWA works closely with, and consults to several German federal agencies for resources such as the German Federation of International Mining and Mineral Resources (FAB) and the German Mineral Resources Agency (DERA).
The well credentialled Frankfurt and Berlin-based investment banking firm is also part of the relevant working groups for the development of the battery industry in Germany and Brussels (EU-level).
Europe is accelerating its investment in the battery metals space with demand figures substantially higher than predicted due to the faster rising demand of EVs and other battery-based products.
European governments have set up subsidy-funds to build up battery production. For example, Germany is injecting €1 billion, while France is contributing €700m.
And big-name car manufacturers like Tesla, BMW and Volkswagen are either planning to operate their own mines or invest in mining projects.
Müller said Africa — the largest resources market in the world — offered an almost unlimited number of mining projects.
“Our goal is to find those who qualify for European investors, offtakers and numerous subsidy projects by various European government, banks and other organisations.”
In line with its plan to expand into Africa, South African Etienne du Plessis has been appointed area manager Africa.