Strategic Resources, thyssenkrupp and Heidelberg Materials: Who Will Benefit Most from the Transformation of Heavy Industry?

Strategic Resources: The steel transition starts with raw materials

The exploration company is developing critical vanadium, titanium and high-purity iron ore deposits in Canada and Finland. Its priority is the planned facility at the Port of Saguenay in Québec, with access to seaborne shipping, hydropower and natural gas. The facility is designed to produce 4 million tonnes of high-quality iron ore pellets annually. This would position the company at the upstream end of steel production.

A strategic advantage is that the business model initially relies on processing externally sourced concentrate. Definitive agreements are in place with a subsidiary of Javelin Global Commodities covering the supply and marketing of approximately 4 million tonnes of concentrate or up to 4 million tonnes of pellets annually. For the underlying BlackRock project, the amendment applications are at an advanced stage of regulatory review. These concern expanding the pellet plant from an original annual capacity of 1.5 million to 4 million tonnes.

Alongside Canada, Strategic Resources' medium-term outlook also includes the Finnish Mustavaara vanadium project, which has a history of production. The company announced in the summer that its vanadium-rich concentrate was selected for testing in the FutSteel research project. The project runs from 2026 through 2029 and has a total budget of EUR 17 million.

The Canadian company is addressing the potential of the innovative battery business through cooperation with technology partner Tyfast Energy. The focus here is on innovative lithium vanadium oxide (LVO) anodes. These play a major role in the rapidly growing market for long-life, fast-charging energy storage systems in the heavy-duty and defence sectors.

thyssenkrupp: Consistent implementation progresses

The industrial group aims to develop into a financial holding company by 2030, operating in areas including steel, materials trading, automotive components, plant engineering and marine systems. The aim is to make the business divisions, which have been closely interconnected to date, more independent, with greater responsibility for earnings and, in the longer term, their own access to the capital market.

The first step was taken by the marine division TKMS, which in October 2025 was listed on the stock exchange. thyssenkrupp continues to hold 51% of the shares. Now tk accelis is set to be the next business division to follow. The materials trading and logistics division will become separately investable through a spin-off, with 49% going to thyssenkrupp shareholders. One tk accelis share is envisaged for every 20 thyssenkrupp shares.

Steel Europe could attempt an IPO next year. By then, the division must further reduce costs, adjust capacity and advance lower-emission steel production. At Automotive Technology and Decarbon Technologies, the next steps depend on operational performance and the group's strategic decisions. Alongside IPOs, spin-offs, sales or external equity investments are also options. Analysts see further upside of 20% for the shares, despite a 55% gain since the start of the year.

Heidelberg Materials: 40% upside?

Heidelberg Materials is one of the world's largest producers of cement, aggregates and ready-mixed concrete. The group benefits from demand for roads, bridges, residential buildings, industrial facilities and data centres. However, high investment needs, energy costs and a slower ramp-up in demand and project implementation remain challenges. The first signs of recovery are now visible, and Germany's EUR 500 billion infrastructure package could trigger additional orders. Investments in energy infrastructure and data centres are also gaining importance.

Cement production causes substantial CO₂ emissions. Alongside more efficient production processes, carbon capture and storage is therefore gaining importance. In Brevik, Norway, the group has been operating an industrial CO₂ capture plant since last year, which is intended to capture around 400,000 tonnes of CO₂ annually. This makes the company a technological pioneer in lower-carbon building materials. However, the transformation remains capital-intensive and demanding. Most recently, Heidelberg Materials put the planned CO₂ capture project in Geseke on hold because economic and regulatory conditions were insufficient.

For the current financial year, management expects earnings of EUR 3.40 to 3.65 billion. In July, the upper end of the range was lowered in view of higher energy costs. On November 4, investors can expect a progress update as part of the latest quarterly results announcement. Analysts on average consider the shares, which have fallen by around a third since the start of the year, attractive and see 40% upside potential.

Conclusion

4 million tonnes of iron ore pellets per year. With this planned capacity, Strategic Resources aims to secure a place in the future steel supply chain. The Québec location offers access to hydropower and international sales markets. Permits, construction and substantial capital requirements constitute the next decisive milestones. At thyssenkrupp, the transition to a financial holding company is progressing. The new structure could reveal hidden value. Heidelberg Materials is seeing a business revival. The decisive factors are how quickly this materialises and how costs and earnings develop.