Fundie tips ASX battery metal shares that are NOT lithium

Why did this fundie put the spotlight on these shares?

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Key points

  • A fund manager recommended multiple ASX battery metal shares 
  • The companies produce critical battery components for electric vehicles (EV)
  • One of these companies, American Pacific Borates, is now trading as 5E Advanced Materials 

A fund manager has put the spotlight on ASX shares exploring battery metals other than lithium.

These companies include Syrah Resources Ltd (ASX: SYR), Alpha HPA Ltd (ASX: A4N) and American Pacific Borates (ASX: 5EA).

Let's take a look at why this investment company highlighted these shares.

Battery industry power

Fund manager Tribeca Investment Partners has outlined why it favours certain battery metal shares — outside the popular copper and lithium producers — that contribute other elements critical to the production of lithium-ion batteries.

In a livewire report, Tribeca included Syrah Resources, a company that produces the crucial battery element, graphite.

The fund manager also favoured Alpha, which produces high purity aluminum used in battery resources and LED lighting.

Tribeca's natural resources team predicted the company could "generate greater than $250 million of free cash flow from its products".

In the report, Tribeca also included boron producer American Pacific Borates on its list of battery metal shares, although the company has since stopped trading on the ASX under this name. In a bid to list on the US NASDAQ exchange in mid-March, all ordinary shares of the company were transferred today to 5E Advanced Materials (ASX: 5EA).

5E Advanced Materials is now the sole shareholder and parent company of American Pacific Borates. The company's shares are up 1% today.

Speaking to livewire, Tribeca head of research Todd Warren said boron was a key ingredient for solar glass, used in electric vehicle drivetrains and wind turbines. He predicted boron would see "10 times demand growth" over the next few decades.

Share price recap

In the past year, Syrah shares surged 16% and Alpha climbed 1%. Meanwhile, American Borates surged 37.3% in the 12 months preceding yesterday's market close.

In the year to date, Syrah has dropped 30%, while Alpha has fallen 18%.

For perspective, the  S&P/ASX 200 Index (ASX: XJO) has returned nearly 4% in the past year.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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