BYD, Nova Pacific Metals, Nordex – From raw materials to electric vehicles or wind turbines: The strategies behind the boom

BYD – Sales Increase and Technological Leadership

The Chinese electric vehicle pioneer BYD reported NEV sales of 322,846 units for February 2025 – an increase of 165% over the previous year. The Company is thus continuing its growth momentum. In January 2025 alone, more than 300,000 vehicles were delivered, with passenger vehicles accounting for the majority. Particularly noteworthy is the increase in commercial vehicles to 4,613 units. In the global race for electric mobility, BYD surpassed Tesla for the first time in the delivery of pure battery vehicles in Q4 2024 – a signal for the increasing shift in market power.

BYD is strengthening its technology leadership by introducing the "Ling Yuan" vehicle-mounted drone system, developed with drone specialist DJI. The system, which is being integrated for the first time in models such as the Yangwang U8, enables automated drone control at speeds of up to 54 km/h. At the same time, BYD is pushing ahead with the standardization of driver assistance systems: "God's Eye" technology with level 2 autonomy will be installed in the future, even in low-priced models such as the Seagull. This increases the pressure on competitors to offer similar features in a cost-efficient way – a potential margin killer in the highly competitive Chinese market.

BYD wants to expand aggressively. A third European plant and a battery factory to circumvent EU tariffs are planned. The Company has also secured a prestigious order in Saudi Arabia for a 12.5 GWh energy storage project. Despite positive signals, there are also challenges. Incorporating cost-intensive technologies into entry-level models could further depress industry margins. In addition, BYD trades at a price-earnings ratio of 31.5, significantly cheaper than Tesla at around 138. However, political risks and transparency concerns regarding investments in China explain the difference in valuation, at least in part. The stock is currently trading at EUR 42.40.

Nova Pacific Metals - New discoveries and strategic milestones

Nova Pacific's flagship project, the Lara polymetallic VMS deposit on Vancouver Island, has a long exploration history. More than 58,000 meters of drilling from the 1980s and 1990s demonstrate indicated and inferred resources of 1.82 million t with up to 1.97 g/t gold, 32.97 g/t silver, 1.05% copper, 0.58% lead, and 3.01% zinc. The current reports as of February 2025 now underscore the further growth potential. In the western extension, "Anita Zone", samples were collected with peak values of up to 4.77% copper (higher than in Lara) as well as 3.28 g/t gold, 610 g/t silver, 0.728% zinc, and 0.405% lead. CEO J. Malcolm Bell sees parallels here with the historic Myra Falls mine – an indication of possible deep mineralization.

The acquisition of 3 claims, completed on February 19, covers an area of 976 hectares in the west of the Lara Project and focuses on the Chipman Creek Syncline, a geological structure that is considered an analogue to the once productive Myra Falls Mine. Historical data from Falconbridge from the 1980s indicates untapped zones of exhalative iron formations, a key feature of large-volume VMS deposits. Two identified prospects, Lady A and Lady C, are within 900 meters of each other. CEO J. Malcolm Bell is pleased: "I am confident and encouraged by this consolidation into a larger land package, as it represents significant potential for the discovery of another important VMS deposit in Western Canada."

On February 25, Nova Pacific Metals provided a corporate update. The 10,000 m drill program, which is funded by a successful flow-through placement of CAD 2.64 million, aims to update the historical data, including 226 unused drill holes, with modern 3D georeferencing and to prepare a NI 43-101 compliant new resource estimate. A total of 49 drill holes are planned to be drilled to confirm the historical results and expand the known mineralization. The Lara project combines historical substance with dynamic exploration. The stock currently seems to have bottomed out at CAD 0.19. The level was recently tested four times. Currently, the stock is trading at CAD 0.21, resulting in a low market capitalization of just CAD 8 million.

Nordex - Upturn despite turbulence

The Nordex Group reported a 12.5% increase in revenue to EUR 7.3 billion in 2024, driven by higher selling prices and growing service revenues. For the first time in years, the Company returned to profitability with a net profit of EUR 9 million. The EBITDA margin climbed from 0% in 2023 to 4.1%, and in the fourth quarter even reached 4.9%. A key factor was the reduction of legacy projects with low margins. Free cash flow reached EUR 271 million, and the net cash position stands at a robust EUR 848 million. For 2025, Nordex is targeting a 5–7% margin with expected revenue of up to EUR 7.9 billion.

With orders of 8.3 GW, Nordex had a record year – up 12% on 2023. More than 80% of the orders were received in Europe, including significant orders from Germany and Turkey. Most recently, the Company secured a 112 MW order in Brazil for the Cajuína 3 wind farm, including a 15-year service contract. The service business rose 14% to EUR 777 million, supported by long-term contract extensions. The order backlog of EUR 12.8 billion offers planning security, while the average sales prices per MW rose from EUR 0.84 million to EUR 0.9 million.

Nordex also wants to gain a foothold overseas. Production will start in Iowa later this year to benefit from the growing North American market. However, political risks such as trade barriers or regulatory hurdles remain. While Chinese manufacturers have so far made little push into Europe, margins could come under pressure in emerging markets. With a solid balance sheet and a clear focus on onshore wind, Nordex still appears well-equipped. Analysts expect a share price increase in the medium term if the Company achieves an EBITDA margin of 8%. A share currently costs EUR 13.10.

BYD proves that Chinese e-mobility pioneers can deliver not only quantity but also technological quality – the drone alliance with DJI sets new standards here. Nova Pacific Metals shows how historical drilling data and modern exploration can be used to exploit untapped raw material potential that is indispensable for batteries and wind turbines. Nordex in turn demonstrates that even in a mature market like wind energy, operational discipline and geographic diversification can lead to profitability. Together, the companies represent the green revolution.