Exploding profits? BYD's exports, Power Metallic Mines' drilling, Mercedes-Benz's tariff tactics

BYD – China's export engine defies global headwinds

Despite trade conflicts and weak demand, China's exports rose surprisingly strongly in April: an increase of 8.1% significantly exceeded forecasts, while imports fell minimally. The trade surplus climbed to USD 96 billion. The key driver is the electric mobility industry, led by BYD, whose foreign sales of electric vehicles exploded by 93%, despite a slump in the US due to new tariffs. At the same time, ASEAN countries are supporting China's exports through demand for intermediate goods. However, experts warn that there could be a dip if the US punitive tariffs remain in place after the 90-day period.

BYD aims to sell half of its vehicles outside China by 2030. If this feat is achieved, it would mark the Company's rise to become one of the top three global automakers. An offensive is planned in Europe and South America, supported by cost-efficient supply chains and control over 75% of battery production. However, the US market remains off limits for the time being. At the same time, the planned factory in Brazil, BYD's largest foreign market, has been delayed until 2026 due to labor law investigations. Nevertheless, the Company recorded a 328% increase in sales there in 2024. Critics doubt the 50% mark can be achieved without North America, as reaching that target by 2030 would require sales of 10 million vehicles.

BYD's technological leadership could make the difference. The new "Super E-Platform" enables ultra-fast charging of up to 470 km range in 5 minutes, addressing a core problem of e-mobility. In addition, the Company is expanding its network of 4,000 high-performance charging stations in China. Despite Tesla's overtaking in BEV sales, challenges remain. US tariffs are blocking market access, and the impact of fast charging on the grid is unclear. However, with a presence in 70 countries and a focus on aggressively priced models, BYD is setting new standards. The share price currently stands at EUR 47.19.

Power Metallic Mines – Exploration successes

As a Canadian explorer of battery metals, Power Metallic Mines is focusing on its mineral-rich Nisk project in Quebec, a region with stable politics, tax incentives, and partnerships with indigenous communities. The Company is concentrating on polymetallic deposits such as nickel, copper, cobalt, and precious metals, which are crucial for the energy transition. Innovative technologies such as satellite-based 3D exploration and the use of low-emission energy from Hydro-Quebec underscore the Company's commitment to achieving a carbon-neutral mine. This combination of location advantages and sustainability forms the foundation for long-term competitiveness.

Recent drilling campaigns in the Lion and Tiger zones have yielded promising results. High-grade copper, gold, and silver mineralization in previously unexplored stratigraphic layers indicate further potential. Anomalies identified using borehole electromagnetic (BHEM) surveys enable targeted exploration to depths of up to 2 km. The discovery of massive sulphide zones with copper grades of up to 29.3% highlights the geological diversity of the 45 sqkm land package. Planned capacity expansions, including 6 active drill rigs starting in the summer, are expected to accelerate exploration.

Power Metallic has a solid financial structure. With well-known investors and a strong capital base, the Company is ready for further exploration. It is following a "project incubator" model, which allows for risk-minimized project development in secure legal jurisdictions. Analysts see potential, as the estimated net present value of the mineral deposits is significantly higher than the current valuation. For investors, the question remains as to when the market capitalization will catch up with these fundamentals, especially in light of further expected drilling results. The stock is consolidating after its strong rise at the beginning of the year and is currently trading at CAD 1.06.

Mercedes-Benz – Respite as EU relaxes CO2 targets

The European Union is signaling flexibility in climate protection. Instead of annual CO2 fleet limits, manufacturers now have three years to achieve emission targets. If a company exceeds the targets in 2025, it can compensate for this with above-average savings by 2027. The regulation, which is considered certain to receive formal approval by the member states, provides relief to an industry struggling with trade conflicts, weak demand, and competition from China. The German Association of the Automotive Industry welcomes the move but calls for additional support, for example, in the areas of charging infrastructure and securing raw materials.

Mercedes-Benz is caught between competitive pressure and structural change. In the first quarter, profits fell by 43% to EUR 1.7 billion, while revenue declined by 7%. The main reasons are price wars, a drop in sales in China of around 13% and high development costs for e-mobility. Nevertheless, the balance sheet remains robust with EUR 33.3 billion in net liquidity. The Company's strategy focuses on electrification. By 2027, every model series is to offer at least one electric variant. At the same time, Mercedes plans to cut costs by 10% through more efficient production and direct sales.

To avoid US punitive tariffs, Mercedes is relocating its GLC SUV model production from Bremen to Alabama. From 2027, the plant there will serve North American demand. This move is intended to protect margins in the lucrative US market. The SUV, currently the manufacturer's best-selling import model in the US, continues to benefit from high demand there. While European manufacturers are struggling with regulatory hurdles, Chinese competitors like BYD are putting pressure on them. Nevertheless, analysts see Mercedes on a stable course in the medium term, supported by financial reserves and product innovations. The share price is currently EUR 53.52.

The green mobility transition remains a major undertaking with an uncertain outcome. As a Chinese battery pioneer, BYD is proving with an export offensive and technologies such as the ultra-fast "Super E-Platform" that price-aggressive innovations can conquer markets, even in the face of trade barriers. Power Metallic Mines, a Canadian raw materials explorer, is securing critical metals in Quebec using sustainable exploration methods, while drilling campaigns and solid financing signal long-term potential. Mercedes-Benz is navigating profit slumps as a premium manufacturer and relocating production to avoid tariffs, while its electrification strategy promises long-term stability despite cost pressures. Together, they are shaping an era in which resources, technology, and adaptability will determine the success of the revolution.