New EU standards aim to secure the future of e-mobility! BYD, Nio, Group Eleven Resources, and VW

Group Eleven Resources – Critical metals at the forefront

Brussels is waking up! Europe is now stepping up its efforts to secure an independent supply of raw materials in order to reduce strategic dependencies and secure industrial value creation within its own economic area. Group Eleven Resources is very well-positioned in this environment. The company focuses on high-grade base metal deposits in Ireland. Through systematic drilling programs, it is attempting to build up substantial resources of critical size in order to create strategic weight.

The focus of its activities is the PG West project with the Ballywire discovery, which is increasingly evolving from a classic zinc-lead structure into a complex multi-metal system. Since the discovery was announced in 2022, more than 75 drill holes have been completed and evaluated, resulting in a robust geological model of the system. The most significant drill hole to date, No. 25-3552-51, extends a previously reported interval to a total of 52.3 m, averaging 10.3% Zn+Pb, 330 g/t silver, and 0.40% copper. Within this interval, 8.4 m stand out with 18.2% Zn+Pb, 1,776 g/t silver, and 2.21% copper, complemented by detectable antimony content, suggesting a high-grade, polymetallic core zone. In addition, three deeper copper-silver zones were identified in the same drill hole, including 3.7 m grading 225 g/t silver and 1.03% copper, supporting the hypothesis of a structurally controlled Cu-Ag system over at least 350 m of strike length. Additional geochemical analyses also show significant germanium and gallium grades over several tens of meters, further increasing the metallurgical value.

The most ambitious program in the company's history is currently underway, with four drilling rigs operating in parallel. These are expected to complete a total of more than 20,000 m of drilling in 2026, of which approximately 85% will be at Ballywire. In addition, the company holds a 77.64% interest in the neighbouring Stonepark project, which is located in the immediate vicinity of Glencore plc's Pallas Green deposit and has a separate zinc-lead resource. The regional integration is underscored by the current shareholder structure. Glencore Canada will retain its approximately 13.6% interest as part of current capital measures, and the ongoing bought deal private placement of 10 million shares plus a 15% over-allotment option at CAD 0.90 is convincing. Against the backdrop of high-grade, powerful drill sections and increasing evidence of an extensive copper-silver system, Group Eleven is currently presenting itself from its strongest side. The current exploration program offers substantial upside potential, and investors should take advantage of the current volatility and jump in boldly in the CAD 0.95 to 1.15 corridor. With a market capitalization of just under CAD 300 million, the multi-metal story is only just beginning!

BYD versus NIO – Two paths in the dynamic Chinese EV market

Car manufacturers depend on stable supply chains! China's BYD is starting 2026 with a clear European strategy and a strong focus on local production. The new plant in Szeged, Hungary, with a planned capacity of 200,000 vehicles per year, not only allows BYD to circumvent EU additional tariffs but also creates proximity to customers and EU supply chains. This is complemented by battery assembly, R&D in Budapest, and a planned plant in Turkey, which spreads geopolitical risks and increases customs flexibility with EU concessions. With a recently acquired market share of just under 1% in Europe, BYD is positioning itself aggressively against established manufacturers such as Volkswagen and Stellantis. In terms of valuation, the stock appears very attractive with a 2026 P/E ratio of 14. The upcoming annual figures on March 26 could provide possible upside momentum.

Chinese competitor NIO Inc. reported deliveries of 20,797 electric vehicles in February, up 57.6% year-on-year, although the volume is seasonally lower than in the previous month. The Spring Festival shifted production and delivery rhythms, so the decline compared to January is due to calendar effects. The core NIO brand remains the driving force with over 15,000 units, while sub-brands such as Onvo and Firefly are still building economies of scale. Discount campaigns continue to signal intense price competition in the Chinese domestic market. Compared to BYD, NIO is focusing more on its premium positioning, high brand loyalty, and technological differentiation. However, the all-round talent BYD is strategically diversifying strongly and focusing on cost leadership. While BYD impresses with its solidity, NIO appears somewhat more agile but also more susceptible to fluctuations in demand. Overall, both manufacturers are taking different paths to assert themselves in the growing but highly competitive EV market in 2026. While BYD is already making money, NIO shareholders will likely have to wait until 2030.

VW reaches the 2 million electric vehicle mark, but the share price still falls

Good news is coming out of Wolfsburg. While many stock market traders are lamenting the high December prices of well over EUR 110, the latest reports are really good. With the delivery of its two millionth electric vehicle, VW has reached an important milestone in its own electrification strategy, symbolically represented by an ID.3 from Zwickau. This model marks the technological starting point, while the actual bestseller is the ID.4. Together with the ID.5 coupe offshoot and the cool ID Buzz, it is a well-rounded package! Of the two million electric vehicles sold to date, around 628,000 were ID.3s, which laid the foundation for the broad range from the compact to the small car segment. Overall, VW is demonstrating that its model mix of everyday vehicles, bus revival, and SUV power is driving forward its hoped-for electrification agenda. Then there are the well-performing combustion engines. Why the stock, with a 2026 P/E ratio of 4.5 and a dividend yield of over 6%, is failing to gain traction will likely become clear to investors when the annual results are released on March 10. Ultra exciting and once again attractively valued!

The stock markets are in the eye of the storm. While defense stocks are finding new buyers on an almost daily basis, established companies, like those in the automotive sector, are struggling. Future suppliers of critical metals are the focus of attention. This is where Group Eleven can shine!