BYD, European Lithium, Lufthansa – It is high time to act

BYD – Overtaking from the right

While Elon Musk faces criticism due to his duties for the US government and Tesla's sales figures continue to decline, especially in China, BYD's business continues to grow unabated. In February, the Company of the wealthiest person in the world sold only 30,688 electric vehicles in China, around 49% fewer than in the same month last year.

The crux of the matter is that the Chinese e-vehicle market continues to grow, with 840,000 units sold, around 80% more than a year earlier. Market leader BYD even ended the month with a plus of 161% to 318,233 battery-powered vehicles sold.

The "Build Your Dream" company wants to continue to grow in Europe despite the problems with punitive tariffs. In an interview with "Manager Magazin," BYD Vice President Stella Li and top manager Maria Grazia Davino explained how they intend to conquer the European market.

BYD initially plans to produce up to 150,000 vehicles in Europe, with the prospect of doubling this number in a second phase. Factories in Hungary and Turkey are planned as production sites. Li announced that production in Hungary is to begin before the end of this year. Additional factories are also planned in Europe, which could possibly be located in Germany. When asked whether acquiring VW factories was an option, Li said that if Germany was competitive as a production location, this could be considered.

European Lithium – Battery-grade lithium for Europe

Donald Trump's "America First" policy and the events of recent weeks, with simmering trade wars and the imposition of punitive tariffs, make it clear: Europe must become more independent at all costs, both in building military security and in securing its raw material supply. There are plenty of alternatives in the old continent, as can be seen in the portfolio of the Australian exploration company European Lithium.

Through its investment vehicle Critical Metals Corp., in which European Lithium still holds a stake of well over 60% after the recent successful capital increase of USD 22.5 million, the Wolfsberg Lithium Project in Austria, the first fully approved lithium mine in Europe, is to become the supplier of battery-grade lithium in a fully integrated European battery supply chain.
A supply agreement with a value of over USD 15 million was already signed with the German automotive giant BMW in 2024. In addition, a shareholder agreement was signed with Obeikan last year to build and operate a lithium hydroxide plant in Saudi Arabia. The agreement provides for a 50:50 joint venture, reducing energy costs by more than 80%.

In addition to the Wolfsberg Lithium Project, European Lithium has another big ace up its sleeve. At the Tambreez Rare Earth Project in southern Greenland, European Lithium owns 7.5%, with Critical Metals Corp. holding a further 42%. The Nasdaq-listed company has an option to acquire an additional 50.5% of Tanbreez, increasing its stake to 92.5%, provided it invests USD 10 million in exploration work within two years.

In terms of in-situ tonnage, the Greenland project is considered to be the largest rare earth project in the world. However, rare earth oxides account for only around 30% of the value of the in-situ tonnage of USD 2.1 trillion, with the remainder consisting of tantalum, niobium, and zirconium oxides.

Lufthansa – Flying high after the figures

The crane is flying again, and how. Since the year's low of EUR 5.52 on January 13, the Lufthansa share price has risen by over 40% to EUR 7.80, becoming one of the top performers in the MDAX with increasing momentum. Record revenues and a stable dividend ensured a decent cruising altitude despite a slump in profits.

With EUR 37.6 billion, the airline celebrated the highest revenue year in history. Although passenger numbers and demand have increased, profit remained below expectations. Operating profit fell by more than EUR 1 billion to EUR 1.65 billion, a significant decline from the previous year.

Several factors contributed to weak profitability. High kerosene prices, rising labor costs, and repeated strikes led to increased costs. Delayed deliveries of new aircraft also had a negative impact on operations. Despite a 7% increase in passenger numbers to 131 million, margins were under pressure. For the current financial year, Lufthansa plans to expand seat capacity by 4%, corresponding to 95% of the pre-corona level from 2019.

US analyst firm Bernstein Research raised its target price for Lufthansa from EUR 8 to EUR 9 and reiterated its "Outperform" rating.

Despite a sharp drop in profits, Lufthansa's stock continues to skyrocket. BYD continues its growth trend. European Lithium has excellent growth potential with its diversified portfolio.