High-profile projects as a zinc turbo: Glencore, Mercedes-Benz, Pasinex Resources

The automotive industry remains dependent on zinc

The majority of global zinc demand comes from the automotive industry. Zinc is needed to make steel rust-free. However, vehicle manufacturers such as Mercedes-Benz currently have other challenges to deal with: the global sales crisis and the transition to electric drives are keeping the management of all car manufacturers on their toes. German premium brands in particular are struggling – the volatile zinc market is the least of their problems. However, since zinc is needed for vehicle bodies, one thing is clear: demand for the raw material will remain even after the industry has been electrified – addressing supply security also makes sense for large industrial customers.

Glencore: Mines and trading for higher returns

Glencore has traditionally been well-positioned in the commodities business. The Company focuses on mining and trading. This combination is intended to help it navigate the volatile commodities markets. Zinc production at Glencore increased by 12% in the first half of 2025 compared to the previous year. The Antamina mine in Peru and projects in Australia were decisive factors for Glencore. For Glencore, which focuses on key metals of the future, transition metals like copper, cobalt, and zinc are also particularly important. The Company counters the high market volatility of these metals with active risk management and its own trading approach. This allows it to even profit from disruptions in the supply chain.

Pasinex Resources: Small projects and high grades as a model for success

Canadian zinc producer Pasinex Resources, based in Toronto, has already incorporated risk management into its business model. The Company operates zinc mines in Turkey and the US state of Nevada. Pasinex explicitly focuses on smaller projects with high grades – zinc grades between 25 and 50% are well above the industry average and ensures lower costs for extraction and subsequent processing. Zinc projects also pay for themselves more quickly, and Pasinex can even benefit from medium-term trends in the zinc market. In return, it can compensate for periods of weakness and balance the market depending on the situation on the world market.

The Company's smaller projects also allow for a completely different level of proximity to potential customers. The Pinargozu mine in Turkey, in which Pasinex holds a 50% stake, sells its zinc sulfide concentrate directly to smelters and refineries – without any middlemen. This enables Pasinex to secure market share in niche markets: customer proximity and high product quality thanks to extremely pure ore provide the Company with customers, even when large corporations like Glencore dominate the mass market.

Pasinex as a zinc turbo: Shares likely to have further potential

With projects such as Sarikaya in Turkey, which Pasinex intends to acquire, and the Gunman project in Nevada, in which it holds a 51% stake and which recently attracted attention with high-grade zinc oxide discoveries, Pasinex has further potential to expand its agile business in a market phase of rising zinc prices. To finance these steps, Pasinex already raised CAD 2.15 million in July. The Company is therefore well prepared to expand its offering in times of rising zinc prices on the global markets.

When zinc was already in short supply in 2016 and 2017 and prices rose sharply, Pasinex ramped up production at its Pinargozu mine. The result: Pasinex's share price climbed by more than 300% within a year. The stock, which has already gained more than 100% in the current year, could continue to be on the winning side in the coming months. While Mercedes-Benz is not a good alternative due to problems in the automotive sector, Glencore is currently the only other option for investors in the commodities sector. The billion-dollar corporation offers more stability, but also a less dynamic share price performance.