From raw materials to vehicles: How Volkswagen, Avrupa Minerals, and BHP Group are driving the electric revolution

Volkswagen – Investing in the future, radically reducing costs

Volkswagen is currently performing a difficult balancing act. On the one hand, the group is driving forward its technological future with a Europe-wide data offensive to improve vehicle safety and an AI license from China for autonomous driving. On the other hand, pressure from China, where local manufacturers are destroying margins, is forcing massive cuts. Plant closures are suddenly no longer taboo, with 35,000 jobs set to be lost by 2030. This sounds contradictory, but it is strategically intentional.

Across the group, VW is aiming to reduce costs by around 20% by the end of 2028. This is ambitious and painful. The possible sale of its powertrain subsidiary Everllence, for which financial investors are apparently offering up to EUR 8 billion, would bring in fresh capital and show the direction VW is taking. The company is focusing on its core business. At the same time, the core brand is being restructured with job cuts and leaner structures. The fact that plant closures were even discussed at the board meeting underscores the seriousness of the situation.

Despite all the cutbacks, there is some really good news. Net cash flow in 2025 was EUR 6 billion, far more than the forecast break-even figure. Net liquidity climbed to over EUR 34 billion. This is no coincidence, but the result of a disciplined investment policy. Many electrical projects have been postponed or canceled, which is easy on the cash register. The group is acting from a position of strength, not necessity. Now management must deliver and maintain the balancing act. The share is currently trading at EUR 100.85.

Avrupa Minerals – With a focus on Europe's hidden treasures

A Canadian exploration company specializes in searching for copper, zinc, and gold in Europe's most traditional mining regions, relying on a strategy designed to limit the risk for shareholders. Avrupa Minerals acts as a project generator. Instead of putting all its eggs in one basket, it secures rights to several promising properties, evaluates them through targeted exploration, and then brings financially strong partners on board for the more expensive further development. For every CAD raised by the company itself, management has so far been able to generate around CAD 2 in technical expenditure through partners. This model protects the balance sheet and limits the dilution risk for investors.

The geographical focus is on proven metal belts in politically stable European countries. In Portugal, the company made a rare discovery in 2014 in the famous Iberian Pyrite Belt, the Sesmarias copper-zinc deposit on the Alvalade project. Currently, the company is looking for a new mining partner to drive further development. A preliminary technical report in accordance with NI 43-101 is expected in the first quarter to provide clarity on the dimensions of the deposit. At the same time, Avrupa holds several concessions in the Pyhäsalmi mining district in central Finland, right next to a disused mine with an intact processing plant. The goal is to find a nearby copper-zinc deposit that could be transported by truck. As the region has not been specifically explored for these metals for decades, there are unexpected opportunities here.

The latest financing of approximately CAD 570,000 in December will be used specifically to prepare the projects for new partnerships. In Finland, the most promising claims are to be further upgraded before a partner comes on board to strengthen the negotiating position. The Slivova Gold project in Kosovo, in which Avrupa holds a 49% stake, was recently put on hold due to licensing delays. With a new government in place, management now expects fresh momentum, and since the price of gold has risen significantly since the last resource estimate, a revaluation could be worthwhile. For investors who focus on commodity stocks, this paints a picture of a company with several potential development paths. The entry of a partner in Finland, the resolution of the partnership situation in Portugal, and the realization of the investment in Kosovo could provide momentum in the coming months. The share is currently trading at CAD 0.07.

BHP Group – On track for copper: Solid foundation with staying power

The commodities group BHP has undergone a noticeable transformation in recent years. What used to be primarily synonymous with iron ore and coal is now a diversified heavyweight with a clear focus on copper. The current half-year figures underscore this course. The copper division now contributes a good half of the group's EBITDA, with margins of over 60%. Day-to-day business is running smoothly, with production in the core areas of iron ore and copper developing steadily and growing. At the same time, the company remains cost-disciplined. Across all major mines, unit costs fell by an average of 4.5%, led by the Chilean copper giant Escondida.

Financially, BHP is in robust shape. Adjusted EBITDA rose by a quarter to USD 15.5 billion, with a margin of an impressive 58%. At 23.6%, the return on capital is at a level that many industrial companies can only dream of. Operating income brought USD 9.4 billion into the group's coffers. Shareholders benefit directly from an interim dividend of USD 0.73, which corresponds to a payout ratio of around 60%. Net debt is moderate at 0.5 times EBITDA, leaving enough leeway for cyclical fluctuations or acquisitions.

Strategically, BHP is focusing on two long-term growth pillars. Copper remains the core story. Production here is expected to grow by around 5% annually through the mid-2030s, driven by electrification and grid expansion. At the same time, the group is establishing a second, uncorrelated source of income with the Canadian potash project "Jansen." Three-quarters of the first expansion stage is complete, with production scheduled to start in mid-2027. Jansen is expected to supply around 10% of global supply and contribute around USD 1 billion to EBITDA annually with margins of over 60%. The share is currently trading at USD 81.57 on the NYSE.

As the global race for copper and zinc reshapes the commodity markets in 2026, companies are strategically positioning themselves for the electric revolution. Volkswagen is mastering the balancing act between billions in future investments and radical cost cutting thanks to strong liquidity of over EUR 34 billion from a position of strength. Avrupa Minerals, as a focused project generator, is opening up several development paths in Europe's traditional mining regions to benefit from the growing demand for strategic metals. With stable growth in copper production and the development of the Jansen potash project, BHP Group is relying on two profitable pillars that will ensure the group's long-term viability and high returns.