Power Metallic Mines, Volkswagen and RWE: Raw Materials, Cells, Grid — Benefiting from the Germany-Canada Pact

Power Metallic Mines: Lion Zone Delivers Exceptional Grades

Electric mobility, AI data centres, and the global shift toward electrification are fueling demand for copper. On September 8, 2026, Power Metallic Mines released its first resource estimate for the Lion Zone at the NISK project in Québec. 4.145 million metric tonnes fall into the "Indicated" category with a 3.86% copper equivalent grade, plus 0.601 million metric tonnes in the "Inferred" category with a 4.01% grade. The "Indicated" category contains 1.68% copper, 2.61 g/t palladium, 0.85 g/t platinum, 0.49 g/t gold, 12.21 g/t silver, and 0.10% nickel. More than 85% of the resource is classified as proven; the mineralisation begins at surface, and 59% of the tonnage is located in the open-pit area. This is ideal for mining and saves costs.

What is in the ground has to come out. A closed-circuit test at SGS Canada achieved a 98.9% copper recovery rate and a concentrate containing 25.8% copper, along with 96.8% recovery for platinum and 93.9% for palladium. A conservative 98.5% copper recovery rate was used in the resource estimate. The location also works in Canada's favour. The Route du Nord runs past the project; the 735-kV Albanel substation is 9.1 km from Lion, and Nemiscau Airport is about 30 km away. This keeps investment costs low from the outset.

Currently, five drill rigs are in operation on the NISK property, targeting depths and strike directions below the modeled zone. Initial assay results are expected in September. The company has done its homework and laid the groundwork for the upcoming Preliminary Economic Assessment (PEA). Power Metallic Mines is in a strong financial position; in June, approximately CAD 28.2 million from a LIFE financing round was injected into the company's coffers, with Eric Sprott serving as the anchor investor. With the updated technical report, the final requirement for NASDAQ listing via ADR has been met; a response is expected in October. If the listing is successful, the investor base will expand significantly.

Volkswagen: Cost-Cutting Plan Approved, Future of Four Plants Uncertain

From Skoda to Porsche, Volkswagen builds vehicles for nearly every budget. However, the plant network is designed for higher sales volumes than the market can support. In Europe, capacity exceeds demand by more than 500,000 vehicles; future plans call for 9 million vehicles per year. On September 3, the Supervisory Board unanimously approved the 2030 Future Plan. The company plans to cut about 50,000 jobs, including management positions. For Emden, Zwickau, Hanover, and Neckarsulm, the company has not yet identified a competitive alternative use, with closures scheduled in stages from 2031 to 2034. Four plants are on the chopping block.

At the same time, the group is pushing ahead with its battery initiative. The subsidiary PowerCo recently ramped up operations at the Salzgitter Gigafactory and is manufacturing the standard cell in a prismatic battery cell format, initially based on nickel-manganese-cobalt, with an annual capacity of up to 20 GWh and potential for expansion to 40 GWh. Salzgitter serves as the lead plant for Valencia and St. Thomas. A 9.9% stake in Patriot Battery Metals, acquired in 2024 for CAD 69 million, along with an offtake agreement for 100,000 metric tonnes of spodumene concentrate annually over 10 years, is intended to help reduce dependence on China. However, equipment, lithium materials, and separator foils still come from China. Dependence on China therefore remains.

On September 7, Volkswagen, the state of Lower Saxony, and the investor Aurelius reached an agreement on a potential sale of the plant in Osnabrück. In the future, the plant will manufacture components for air defence systems. By 2030, Volkswagen's operating margin is expected to climb to 9%, which would correspond to approximately EUR 31 billion in operating profit. Volkswagen has earmarked EUR 135 billion for investments and research and development between 2027 and 2031. This contrasts with a 31.6% decline in sales in China during the first half of the year. The plan for the European plants must be finalised by the end of June 2027. If this can be achieved without ongoing disputes, the turnaround could succeed.

RWE: Strong First Half, but Farewell to US Offshore Wind

Global electricity demand is growing. To benefit, companies need power plants, energy storage systems, and transmission lines. RWE offers this mix. The Essen-based company has nearly 41 GW of capacity from renewable energy sources, flexible power plants, and battery storage systems. Another 10.3 GW are currently under construction. The group also holds a majority stake in transmission system operator Amprion, giving it a direct role in expanding the power grid. It also trades energy through its subsidiary, RWE Supply & Trading. As long as demand continues to rise, this portfolio plays right into RWE's hands.

On August 6, RWE reached an agreement with the US Department of the Interior. The company is returning three offshore wind lease areas off the coasts of New York, California, and Louisiana and will receive USD 1.22 billion in return. It had previously invested more than USD 1 billion in those projects. The half-year results followed on August 13. Adjusted EBITDA rose to EUR 3.0 billion. By comparison, the figure a year earlier was EUR 2.1 billion. This was also reflected in the adjusted net income, which climbed from EUR 0.8 billion to EUR 1.3 billion. Operations are going well. Consequently, the full-year forecast for adjusted EBITDA was raised to EUR 5.75 to 6.35 billion.

However, expansion comes at a cost. For 2026, RWE is now planning net investments of EUR 9 to 11 billion, up from the EUR 6 to 8 billion originally planned. Net debt stood at EUR 15.0 billion at the end of June. In the US, policy has put the brakes on offshore wind power for now. In the Netherlands, however, progress is being made. On September 1, the first foundation was laid for the 795 MW OranjeWind wind farm. New figures will be released on November 11. Debt remains the risk.

The Germany-Canada pact comes at the right time, because without raw materials, cells, and grids, Europe's battery push remains fragile. Power Metallic Mines has secured high-grade copper, palladium, and platinum resources with the Lion Zone in Québec and could thus become a strategic raw materials base. Volkswagen is expanding cell production with PowerCo and its cost-cutting plan, but the future of four European plants remains uncertain. RWE provides renewable energy, storage, and grid infrastructure, but must cope with costly expansion and its withdrawal from US offshore operations.