How Volkswagen, Power Metallic Mines, and Nordex aim to conquer the trillion-dollar energy transition market

Volkswagen – Pushing back against resistance

Despite a challenging environment, Volkswagen kept its revenue stable at EUR 158.4 billion in the first half of the year and increased vehicle sales slightly to 4.36 million units. However, its operating performance is showing cracks. Earnings before interest and taxes slumped by a third to EUR 6.7 billion. The main drivers were massive US import tariffs, which led to a burden of EUR 1.3 billion, and high restructuring costs at Audi and the software subsidiary Cariad. The growing share of less profitable electric vehicles also pushed the margin down to 4.2%.

The regional differences are striking. Southern Europe (+2%), Eastern Europe (+5%) and, above all, South America (+19%) recorded significant growth. These increases more than offset the expected declines in China of 3% and, in particular, North America, which fell by 16%. In Europe, VW is excelling with its e-mobility leadership and has a market share of around 28%. The order books are full. Orders rose by 19% overall and by a whopping 62% for pure electric vehicles. New models such as the ID.7 Tourer and Audi Q6 e-tron are driving demand.

Given the tariff uncertainty and ongoing transformation, VW has lowered its annual forecast. Instead of revenue growth of up to 5%, it now only expects to reach last year's level. The operating margin is likely to be between 4.0% and 5.0%, down from the previous estimate of up to 6.5%. The consistent implementation of cost-cutting and efficiency programs remains crucial. Investments in the future, with an investment ratio of 12-13%, primarily in electrification, will continue even if this means that the coffers will be noticeably emptier in the short term. Net liquidity remains solid at an expected EUR 31-33 billion. The path is clear, but rocky. The share is currently available for EUR 97.36.

Power Metallic Mines – Explorer with focus and momentum in Quebec

Power Metallic Mines is advancing the exploration of polymetallic battery metal deposits in the Canadian province of Quebec. Its flagship project is the Nisk project, which hosts high-grade nickel, copper, cobalt, and platinum group metal (PGM) deposits. A clear advantage is that the project is directly connected to Hydro-Québec's clean hydroelectric power grid. This not only reduces energy costs but also significantly improves the environmental balance. Quebec also offers political stability, attractive tax incentives for exploration, and good relationships with local partners.

The Company is highly active operationally. A summer field program is underway with six drill rigs operating on the Nisk, Lion, and Tiger core zones and the connecting areas. At the same time, detailed geophysical exploration is being conducted across the entire, recently expanded land package. The property was expanded by 167 square kilometers through the acquisition of Li-FT Power. Recent mineralogical scans of the Lion zone are particularly promising. They show copper mainly in easily processable minerals such as chalcopyrite and cubanite. Crucially, valuable PGEs are closely associated with these copper minerals, which suggests high recovery rates during processing. Mineralogy testing is expected to be completed by the end of the summer.

Experienced industry investors, including the Lynch family and Rob McEwen, back Power Metallic Mines. The Company has a strong capital base and considers itself fully funded through at least 2026. The CAD 50 million raised at the end of February will flow directly into the massive resource expansion. Key milestones are scheduled for 2025: First, the expansion of exploration activities; second, the publication of the first feasibility study for Nisk; and finally, the Company aims to list its shares on major stock exchanges. In summary, the team combines geological potential with operational strength and a solid cash position. The share is currently trading at CAD 1.38.

Nordex – Solid quarterly figures, but political clouds on the horizon

Nordex is consolidating its position as a leading manufacturer of onshore wind turbines. With planned annual revenue of EUR 7.4 to 7.9 billion and over 57 gigawatts (GW) of installed capacity globally, Europe remains the key driver, accounting for around 87% of new installations in the last quarter. The focus on the domestic market is currently paying off, even though dependence on European conditions is growing. New large orders, such as those recently received from Brandenburg, underscore the strong demand for Nordex technology and long-term service packages.

The second quarter brought encouraging progress. The EBITDA margin climbed to 5.8%, up from 3.5% in the second quarter of 2024, driven by cost reductions and growing service business. Net profit reached EUR 31 million. Free cash flow rose to EUR 145 million, which is particularly positive. Together with a comfortable net cash position of EUR 942 million, this provides financial flexibility for future investments or strategic moves. The forecast for 2025, which envisages revenue of EUR 7.4-7.9 billion and an EBITDA margin of 5-7%, was confirmed.

The biggest challenges for Nordex lie outside the core business. Political signals in Europe are becoming increasingly unpredictable, ranging from discussions about expansion moratoriums, as seen in France at times, to fundamental questioning of climate targets. Since Europe accounts for almost 90% of the installation business, such uncertainties hit Nordex particularly hard. Although high market entry barriers and ongoing EU investigations largely shield the Company from Chinese competition, and the US business remains small for the time being, the focus on Europe remains both a strength and a weakness. The share price has been on the rise since the beginning of July and currently stands at EUR 23.18.

The battle for the trillion-dollar energy transition market requires strategic foresight. Volkswagen is bucking massive tariff burdens and profit pressure with stable revenues and strong electric vehicle orders in Europe, but needs to accelerate its transformation. Power Metallic Mines is pushing ahead with the exploration of high-grade battery metals in Quebec with operational clout and solid financing to position itself as a critical raw material supplier. Nordex is delivering solid results and benefiting from European demand for wind power, but remains heavily dependent on an increasingly unpredictable political environment on the continent. Each company is fighting in its own way for dominance in the new energy landscape.