Battery raw materials are the bottleneck in many areas – Power Metallic Mines, DroneShield, and Volkswagen under review

Power Metallic Mines – A raw materials explorer with a unique profile

What sets Power Metallic Mines apart from many explorers is the unique combination of metals in its flagship NISK project in Quebec. Here, the team has not found a pure nickel or copper deposit, but a diverse mix of critical raw materials. Copper and nickel are found alongside platinum group metals, gold, silver, and cobalt. This diversity within a single deposit offers natural protection against price fluctuations of individual metals and directly addresses the demand being driven by the energy transition. The project is thus developing into a potentially strategic resource story.

Technical interest extends beyond the already proven ore bodies. Geologists classify the deposit as orthomagmatic. This rare category is responsible for some of the world's largest and most profitable mines. A characteristic feature of such deposits is their occurrence in clusters. The Company's hypothesis is that the current Lion Zone may be only the visible tip of a much larger system. Ongoing drilling is aimed precisely at finding this presumed "mother deposit," which could potentially multiply resource growth.

The Company operates with a solid financial cushion that secures an ambitious, fully funded 100,000 m drilling program through at least the end of 2026. This ensures a steady flow of news and should significantly enhance the mineral resource in the end. The Quebec location offers key operational advantages, such as existing infrastructure, established mining expertise, and government support programs for critical minerals. These conditions significantly reduce risk and future capital costs. Together with the strategically expanded land position of 313 sq km, this creates the basis for methodically exploring the geological potential without financial pressure. The share is currently trading at CAD 1.25.

DroneShield – Why more powerful batteries are fueling business

Advances in battery technology are driving the use of drones. Higher energy density enables longer flight times or greater payloads, but usually at the expense of the other factor. However, this improved performance not only makes drones more versatile, but it also increases the risk potential. This is precisely where the business model of specialists such as DroneShield comes into play. The Company offers integrated systems for detecting and defending against unmanned systems. Its revenue is generated primarily from the sale of hardware-based solutions, increasingly supplemented by AI-supported software and service subscriptions for military and security customers.

DroneShield has benefited greatly from the growing demand for drone defense, driven by geopolitical tensions. Revenue has multiplied, and gross margins are robust. The Company positions itself as an agile pure play in a young market that it estimates to be worth several tens of billions of AUD. However, this momentum has been clouded by internal turmoil. Extensive insider sales by management and communication mishaps led to a significant loss of confidence and share price setbacks, despite a continued strong order situation.

The events in Ukraine have acted as a catalyst and demonstrated how drones are changing conventional warfare and security situations. The need for defense systems is therefore considered to be structural and long-term, regardless of the outcome of individual conflicts. While the military sector is currently driving growth, the civilian market for critical infrastructure, such as airports and power plants, is also growing. The challenge for companies like DroneShield will be to expand their technological leadership and production capacities while regaining lost investor confidence through transparent corporate governance. The stock is currently trading at AUD 3.08.

Volkswagen – Battery bet: More than just a battery

For Volkswagen, the success of electric vehicles boils down to one key component: the battery. It is not only the heart of the vehicle, but also the biggest cost driver, accounting for around one-third of the vehicle's cost. Whoever masters control, economies of scale, and technology in this area will gain long-term competitiveness. This is precisely where Wolfsburg comes in with its own cell production through its subsidiary PowerCo. The start of series production in Salzgitter is a concrete step toward reducing dependence on Asian suppliers and taking control of margins.

The group's global electric balance sheet paints a mixed picture. Things are going extremely well in Europe, where Volkswagen is the market leader, and demand is booming. However, there is considerable resistance in the key markets of China and North America. Above all, the battle with agile local manufacturers in China is weighing on the figures. These regional disparities are putting pressure on overall margins, as high investments in new technology are being made at the same time. Operational strength in the domestic market cushions this, but is not enough on its own to secure a leading global position.

In view of the pressure on margins, the Company has slightly reduced its five-year investment framework and is pursuing a stricter cost policy, which also includes plant closures such as in Dresden. At the same time, work is underway on the next stage of the transformation, autonomous driving. Tests with driverless research vehicles in Wolfsburg are intended to provide insights for future vehicle generations. The strategy is clear: costly electrification must now become more profitable while preparing for technological leadership in the next decade. The share price is currently trading at EUR 104.20.

The strategic importance of battery raw materials is redefining the investment era. Power Metallic Mines is positioning itself as a natural hedge against price fluctuations with its polymetallic deposit in Quebec. DroneShield is structurally benefiting from the drone boom, but needs to regain lost investor confidence following management scandals. Volkswagen is driving forward independence with its battery cell subsidiary PowerCo, but is struggling to remain competitive in the key markets of China and the US. Raw material security remains the critical lever for industrial change.