More than 100% price gain! Volkswagen, Standard Lithium, and BMW partner European Lithium! Comeback for EVs and lithium!

Volkswagen, BMW, and Mercedes step on the gas

While BYD is struggling with a price war and overcapacity in China, and Tesla is suffering under its CEO, Elon Musk, German electric vehicle manufacturers are stepping on the gas. Mercedes sold fewer electric vehicles in the first half of 2025, but the new all-electric CLA appears to be meeting high demand. It has been reported that Mercedes plans to increase production.

Volkswagen significantly strengthened its position in the European electric vehicle market in the first half of 2025. The group reported a sharp rise in sales of battery electric vehicles (BEVs) in Europe, up around 89% compared to the same period last year. Volkswagen impressively maintained its market leadership in Germany in particular: Almost every second newly registered electric vehicle came from the group's portfolio. The core Volkswagen brand itself also increased its global BEV deliveries by more than 14%. In Western Europe, one in five vehicles delivered was already purely electric – a clear signal of the accelerated shift toward electric mobility and the success of the group's model strategy.

BMW's sales figures are solid, but the focus is currently on something else: the Munich-based company's "New Class." It is set to herald a new era of electric mobility. This time, however, it represents a completely newly developed, battery-electric vehicle architecture featuring an 800-volt system, Gen6 cylinder batteries, and an integrated body for enhanced range and efficiency. In June 2025, BMW officially announced that series production of the New Class models – starting with the iX3 crossover and a 3 Series sedan – will begin at the end of 2025 at the brand-new plant in Debrecen, Hungary. At least six more models are expected to follow within two years, supported by digital innovation, the sustainable use of materials, and circular economy principles.

European Lithium: On board with BMW and soon with the EU too?

European Lithium is also set to contribute to the success of BMW's "New Class." The Company is currently developing a lithium project in Austria. And it is a really exciting one: According to recent media reports, Wolfsberg could account for around 4.5% of global lithium production in the future. BMW has already secured the raw material for the batteries in its "New Class" and made a down payment in the millions. The lithium will be mined and processed into battery-grade lithium hydroxide in Saudi Arabia, where energy costs are 80% lower. A local company has already been brought on board to build a refinery with an annual production capacity of up to 20,000 tons of lithium hydroxide.

It is quite possible that the European Union will soon become a partner of European Lithium. The EU is working on strategies to secure its supply of critical raw materials, including lithium. Although the EU does not currently operate an official lithium "reserve" in the traditional sense, such as strategic oil reserves, it has initiated several measures, such as the Critical Raw Materials Act.

Another "critical" project also speaks in favor of purchasing European Lithium shares: the Tanbreez rare earth project in Greenland. The country is under Danish sovereignty and thus belongs to the EU. According to the PEA, Tanbreez is one of the largest known rare earth deposits in the world. The net present value (NPV) has been calculated to be between USD 2.4 billion and USD 3 billion. A robust resource base of 45 Mt @ 0.40% total rare earth oxide (TREO) with 27% heavy rare earth elements (HREE) has been reported. The proportion of heavy elements is said to be unusually high. An exploration license for a 30-year period has already been granted.

Given these projects, the market capitalization of just over EUR 50 million seems anything but high.

Standard Lithium: 100% since the beginning of the year, and now?

Compared to European Lithium, Standard Lithium already weighs in at USD 676 million on the stock market, but it is also a good deal further along in development. Nevertheless, it shows the direction European Lithium could still take. And there is also news from Standard Lithium. Since April, the share price has more than doubled and is currently trading at USD 2.39. The price increase was accompanied by positive news flow.

Most recently, Standard Lithium and its R&D partner Telescope Innovations unveiled a novel, patent-protected process for producing lithium sulfide at low temperatures. The process successfully converts lithium hydroxide from the demonstration plant in Arkansas into battery-grade lithium sulfide, a key raw material for next-generation solid-state batteries. The technology enables a flexible raw material base, operates below 100°C, and tolerates impurities, which increases safety and cost-effectiveness. Initial samples have already been sent to battery manufacturers in Asia and North America for validation.

At the same time, the Smackover Lithium joint venture – consisting of Standard Lithium and Equinor – has reached an important regulatory milestone: The Arkansas Oil and Gas Commission has approved an initial license rate of 2.5% for lithium from brine under the South West Arkansas (SWA) Project Phase I. This sets a precedent for the industry and, at the same time, ensures fair compensation for local resource owners.

With a planned annual production of 22,500 tons of battery-grade lithium carbonate starting in 2028, Standard Lithium is positioning itself as a pioneer in modern lithium extraction in North America – both technologically and regulatorily.

German vehicle manufacturers appear to have caught up in the electric mobility race. The coming years will undoubtedly be exciting for VW, BMW, and Mercedes. However, it is unclear who will win the race. One thing is clear: all manufacturers need batteries and therefore lithium. The lithium industry had a challenging year in 2024, but the stock market lights are currently green for Standard Lithium and European Lithium. The latter stock appears to have significant upside potential.