Electric vehicles, batteries, wind power: How Volkswagen, Graphano Energy, and Nordex are winning at the energy transition poker game

Volkswagen – Between electric drive and turbulence

Volkswagen is in the midst of its transformation, which is currently not proceeding entirely according to plan. Although deliveries of fully electric vehicles rose sharply by 47% in the first half of the year, they only account for around 11% of total sales. This subdued demand in some regions is forcing the Company to take countermeasures. Production has been temporarily scaled back at the German electric vehicle sites in Zwickau and Emden. The goal is clear: to balance supply and demand and control inventories. For investors, this signals that the ramp-up of electric mobility is proving more bumpy than hoped.

The Group's financial situation remains challenging. On the one hand, revenue reached the previous year's level of around EUR 158 billion, but on the other hand, operating profit slumped significantly in the first half of the year. It fell from EUR 10.0 billion in 2024 to EUR 6.7 billion this year. The reasons for this are increased US import tariffs, the burden of CO2 regulations, and currency effects. On a positive note, net liquidity in the automotive division remains solid at EUR 28.4 billion, providing a buffer for the challenges ahead. However, the negative net cash flow indicates increased pressure on short-term liquidity management.

In response to the harsh market environment, Volkswagen is sharpening its strategy. The focus is increasingly on cost control and core business. The new T-Roc generation, which will be launched in November, is set to be an important driving force. At the same time, VW is working on the "Electric Urban Car Family," a platform for affordable city electric cars, in order to streamline its portfolio in the long term. This realignment shows that the group is trying to respond flexibly to market fluctuations without losing sight of its long-term electrification goals. The share is currently trading at EUR 91.92.

Graphano Energy – Graphite player in pole position

Demand for graphite, an essential component of lithium-ion batteries, is booming. While China has long dominated the market, Western countries are increasingly focusing on decoupled supply chains. This is precisely where Graphano Energy is cleverly positioning itself. The Company is focusing its activities entirely on the mining-friendly province of Quebec, which not only has first-class infrastructure and clean energy but also offers political stability. This combination of ideal geography and favorable geopolitical timing could give Graphano a real competitive advantage in becoming a relevant regional supplier.

The focus is currently on the Black Pearl project, where an initial drilling campaign began in mid-September. The drilling aims to confirm and extend the promising mineralization with values of up to 17.9% graphite carbon (Cg) over 9 m, which has already been identified by surface sampling. The program covers approximately 600 m and targets kilometer-long conductive zones discovered through geophysical measurements. If the campaign is successful, Black Pearl could significantly increase the value of the Company's project portfolio.

In addition to this new focus, Graphano is building on two other promising projects. The Lac Aux Bouleaux (LAB) project has an indicated resource of 690,000 t at 8.01% Cg and an inferred resource of 600,000 t at 6.74% Cg. The material can be processed directly at Northern Graphite's facility, and an agreement to this effect is in place. Its counterpart, the Standard Property project, has an indicated resource of 950,000 tonnes at 6.27% Cg and a higher-grade inferred resource of 980,000 tonnes at 7.16% Cg. Both deposits have already proven their suitability for battery production in metallurgical tests and form a solid basis for further development. The stock broke out to the upside in mid-July and is currently trading at CAD 0.20.

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Nordex – Global expansion meets solid operations

Nordex is currently demonstrating impressive expansion momentum. The Company has recently secured several strategically valuable orders in new markets in quick succession. A Spanish energy producer has placed its first order for the new N175/6.X turbine generation, a prestigious project that underscores Nordex's technological leadership. Even more significant is the first major order from Ecuador, which will practically double the country's wind power capacity. Together with another major project for Mercedes-Benz in Germany, Nordex is impressively demonstrating its growing international reach and ability to succeed in a wide variety of markets.

Operational performance underpins this success. In the second quarter, order intake rose sharply, reflecting continued high global demand. However, the decisive factor is improved profitability: EBITDA jumped significantly, with the margin climbing to an impressive 5.8%. This shows that the Company can maintain its prices and increase efficiency despite fierce competition. The long-term service contracts that accompany many projects are particularly valuable, guaranteeing steady income regardless of new business.

Financially, Nordex is on a solid footing. Its cash reserves are substantial, and free cash flow has recently been clearly positive. This financial leeway is crucial for driving expansion forward and investing in new technologies. The majority of analysts are therefore optimistic about the future. The latest price targets range between EUR 22.50 and EUR 26.00. They expect Nordex to benefit from global political initiatives for the energy transition and to further increase its margins in the medium term. The course for sustainable growth appears to have been set. The share is currently available for purchase at EUR 21.84.

The energy transition is creating winners along the entire value chain, but the paths are varying in difficulty. Volkswagen is navigating the turbulent markets with operational setbacks and a strategic focus on cost control and affordable electric vehicles. Graphano Energy is benefiting from the boom in graphite, a raw material used in batteries, and could become an important regional supplier with its projects in Quebec. Nordex, on the other hand, shines with solid operational performance, global expansion momentum, and improved margins, laying the foundation for sustainable growth in wind power.