Comeback for Volkswagen, BMW & Co.? European Lithium shares benefit from 2 megatrends!

European Lithium: Rare earths and lithium at a discount

European Lithium's stock has calmed down in recent weeks. This is quite healthy after the price volatility surrounding the export ban on rare earths from China. European Lithium's stock has gained almost 400% in the current year, and since lithium and rare earths are likely to remain in focus in the coming years, the stock is expected to have an exciting future ahead of it.

European Lithium is a major shareholder in Critical Metals (CRML), with a stake of around 60%, which is advancing the Tanbreez rare earth project in southern Greenland. We have known that the region is important for the supply of raw materials in the future ever since US President Donald Trump expressed his interest in Greenland. Tanbreez is considered one of the world's largest rare earth deposits.

CRML recently announced a strategic partnership with the Romanian state-owned FPCU. The aim is to jointly build a modern rare earths processing plant in Romania. The concentrate will, of course, come from the Tanbreez project. In addition to metals, the planned plant will also supply high-quality magnets for aerospace and military applications, making Romania a central component of Europe's raw materials security architecture. Notably, CRML holds a 50% stake in the joint venture and does not have to provide either equity or debt capital for the construction of the plant.

While European Lithium is active as a major shareholder in CRML, it is pushing ahead with its core project in Austria. Lithium is to be mined there in the Wolfsberg lithium mine from 2027 in order to supply European car manufacturers with batteries. A purchase agreement with BMW provides planning security. The customer is currently celebrating success with its newly launched iX3.

BMW and Volkswagen: Comeback in electric mobility

German car manufacturers are making a remarkable comeback in the electric age. After years in which Tesla dominated new registrations and Chinese supremacy seemed too great, Volkswagen, BMW, and others are making a comeback. The predicted downfall came too early. This is evident in the new electric vehicle registrations, where Volkswagen is currently leading the charts. In October 2025, 4 of the 5 most frequently registered electric vehicles in Europe came from the VW Group. In addition to the ID.4, models from Skoda and SEAT are also proving popular.

BMW is currently providing a second example of why German manufacturers should not be written off just yet. The Munich-based company is focusing less on radical experiments and more on combining its well-known strengths - driving dynamics, workmanship, premium feel - with modern e-technology. The new BMW iX3 seems to be very well received by testers. Among other things, its charging speed, balanced chassis, and long-distance suitability are praised. Despite its high weight due to the battery, the driving experience is more reminiscent of a "classic" BMW than a technical experiment. Many tests emphasize that the iX3 appeals to precisely those customers who are coming from combustion engines and "simply" want a comfortable, high-quality SUV with electric drive – without futuristic design or complicated operating concepts.

BYD easily outpaces Tesla

Now that Elon Musk has sidelined Tesla with his forays into politics, BYD is likely the biggest threat to the German auto industry. Proof that Tesla no longer plays a role in this country is that the Tesla Model Y, with 2,205 vehicles sold, only ranked 7th in new registrations in Germany. The other models are nowhere to be found.

So BYD is the new challenger. Thanks to their leading position in their home market, the Chinese are also global market leaders when it comes to new energy vehicles (electric vehicles and plug-in hybrids). They are currently growing strongly in Europe, but from a low level. Between January and October 2025, its market share in Europe increased from 1.5% to 4.5% compared to the previous year. A few years ago, however, it had much more ambitious plans.

A glance at the stock chart shows that not everything is running smoothly at BYD. Over the past 6 months, the stock has lost over 30% of its value. This means that the price gains of the first half of the year have been almost completely wiped out, and the share is trading at the 2021 level.

German automakers such as Volkswagen and BMW are certainly not lagging behind in electric mobility. Numerous new models are planned for the coming year, and it will be exciting to see who wins the race. This could focus attention on European Lithium as a lithium supplier for European batteries. In addition, as a major shareholder in Critical Metals, the Company is benefiting from the battle for rare earths. BYD is struggling, at least in terms of its share price.