Rheinmetall, European Lithium, and Intel: Geopolitical tensions are shaping technology and commodity markets

Rheinmetall on a roll – EU plans EUR 700 billion aid package for Ukraine

The European Union is preparing an enormous military aid package worth EUR 700 billion for Ukraine. The still incumbent German Foreign Minister Annalena Baerbock let this information leak during the Munich Security Conference in Munich. The announcement was originally planned for after the federal election on February 23, 2025.

The massive financial package is to be financed similarly to the Corona aid through joint EU debt. It includes extensive military support, such as arms deliveries, training programs, and other security guarantees for Ukraine.

Rheinmetall shares have reached the EUR 900 mark for the first time since Trump and Putin negotiated the future of Ukraine. Analysts expect the EUR 1,000 mark to be reached soon as well. The reason for this is the reshuffling of the cards in NATO's defense budget for each individual member. It can be assumed that the percentage share of 2% of national GDP per member country will have to be increased further in order to be prepared for developments in the near future.

At the robotics and technology trade fair currently taking place in Düsseldorf Xponential, under the motto "Leadership in unmanned digital ecosystems and robotics", Rheinmetall is presenting technologies that are designed to serve both defense and peacekeeping. The focus is on state-of-the-art systems such as the LUNA NG VTOL, a tactical aircraft with vertical take-off and landing capability, as well as various reconnaissance drones that could contribute to conflict prevention. As technologically advanced as Rheinmetall is, with a potential European Union army, soldiers from individual EU states could also be deployed on the ground to defend Ukraine.

European Lithium: Austria's answer to the global shortage of raw materials

The European lithium market continues to grow. With the US-Trump-Vance administration and the threat of punitive tariffs, the focus is shifting to deposits on the European continent to guarantee the greatest possible independence in procuring this valuable raw material.

According to Grand View Research, the lithium carbonate market in Europe is expected to reach a projected revenue of USD 17.47 million by 2030, with a CAGR of 15%. The metal is used mainly in consumer electronics, such as smartphones and tablets. Many investors are familiar with the use of lithium in batteries.

Austrian mining company European Lithium is advancing the promising Wolfsberg Lithium Project in Carinthia, 270 km south of Vienna. A publicly listed company, European Lithium is listed on the Australian Stock Exchange (ASX), as well as in Frankfurt and the US. The project enjoys a strategic advantage due to its central location in Europe, particularly the well-developed road and rail networks, which enable the seamless distribution of lithium products to the most important European customer countries. With companies like European Lithium, Europe can succeed in becoming more independent again without disregarding international relations.

The Company is making an important contribution to the development of future-oriented solutions for the cleantech and defense industries. Those who want to know more about European Lithium can watch Executive Chairman Tony Sage's presentation live via Zoom on February 25, 2025, as part of the International Investment Forum (IIF) and ask questions afterward. Click here for free registration. Digital conferences like the IIF support investors in making informed decisions.

Intel's reorganization: Shares rise by 13%

With a price jump of around 13%, US chip giant Intel is once again causing a stir on the stock markets this week. The trigger is the news item about a potential takeover bid by Broadcom for Intel's core business in chip design and marketing. The Company, also based in the US, specializes in semiconductors and infrastructure software solutions.

The possible split of the Company could have far-reaching consequences: While Broadcom would take over the design segment, Taiwan Semiconductor is a potential buyer for the manufacturing division. Could this be related to the rumor that Taiwan's TSMC is to be relocated to the US for the transfer of know-how?

Intel has been struggling with significant challenges since last year: The Company has missed the boat, particularly in the booming AI market, where competitors such as AMD and Nvidia dominate.

Intel is still a heavyweight in the semiconductor industry, but it is currently in a difficult position - the declining gross margin of 11.3% per year on average signals a need for action.

The potential split could be a strategically sensible move: on the one hand, it would increase shareholder value. A takeover by Broadcom would likely lead to cost reductions and an improvement in operating margins in the product division. On the other hand, it can lead to an optimization of both business areas through specialized partners.

Rheinmetall's shares have the potential to reach the EUR 1,000 mark, driven by the EU's planned EUR 700 billion aid package for Ukraine. The background to this is also the increasing defense spending of NATO member countries. The Company is presenting innovative robotics technologies at the Xponential Trade Fair in Düsseldorf. The stock has already broken through the EUR 900 mark, and further growth is likely. European Lithium has the opportunity to become a key player in the European lithium market. With its Wolfsberg project in Carinthia, Austria, the Company is profiting from the growing demand for the raw material. Investors can get a first-hand look at the Company's operations and growth opportunities on February 25 at the 14th IIF. Intel is considering splitting its design and manufacturing divisions. The news has already led to a 13% rise in stock prices. The restructuring could help the Company to improve its ailing position.