The battery megatrend is driving business growth at BYD, NEO Battery Materials, and DroneShield

BYD – The Battery Boost in March

With the second generation of its Blade battery, BYD made a clear statement in early March. The cell delivers 210 Wh/kg of energy density and is said to charge from 10% to 70% in 5 minutes. Added to this is a nationwide network of 20,000 proprietary 1,500-kW fast chargers. Those who see this as merely a technical improvement are underestimating the strategic significance. BYD aims to permanently eliminate range anxiety and charging barriers from the market, relying on an integrated system of hardware and infrastructure.

At first glance, the latest sales figures appear weak. Deliveries fell by 41% in February, resulting in a decline of just under 36% for the first quarter. However, the Chinese New Year distorts the statistics. The key point is that exports remain robust at over 100,000 units per month. While an intense price war is weighing on margins domestically, BYD is proving resilient internationally. This trend is likely to strengthen further in the coming quarters.

What often remains in the shadow of the automotive division is gaining increasing importance: BYD's energy storage business. The company has already completed more than 500 major projects in over 110 countries. In February alone, approximately 18.8 GWh of installed capacity was added. This division delivers stable margins, reduces dependence on the volatile automotive market, and makes optimal use of the company's own battery capacities. For investors, this represents a second pillar of the business that has often been overlooked in valuations to date. The stock is currently trading at EUR 11.685.

NEO Battery Materials – Getting Off to a Strong Operational Start

NEO Battery Materials is consistently advancing its integration into South Korea's military apparatus. By signing a Memorandum of Understanding (MoU) with the military-affiliated organization AROKA, the battery developer is securing structured access to the Ministry of Defense's procurement processes. The company had already set the stage by appointing retired four-star General Chang-Jun Ko to its board of directors. The goal is to establish the high-performance cells manufactured in South Korea as the standard for military drones and robotic systems and, from there, open access to NATO partners.

NEO recently demonstrated its technical capabilities in a live field test. In a commercial surveillance drone from a South Korean manufacturer, the company's proprietary cell significantly outperformed a common Chinese benchmark. At sub-zero temperatures, flight time doubled from just under 30 minutes to around 60 minutes. At the same time, the integration of silicon anodes proved efficient. Charging speed increased by 50% under standard conditions. For investors, this is proof that the technology can be incorporated into existing platforms without costly system modifications.

At the same time, the company secured a 1.3-hectare site in South Korea to establish mass production facilities for prismatic and cylindrical cells. The planned annual capacity of 500 megawatt-hours is intended to meet future demand for non-Chinese cells for drones and robotics. This strategic positioning is compatible with the procurement guidelines of Western armed forces, particularly those of the US. Until the new facility becomes operational, initial customer orders will be fulfilled through existing production, while the company's in-house silicon anode production is ramped up in parallel. The stock is currently trading at CAD 0.64.

DroneShield - Drone Defense on the Rise

As batteries become increasingly powerful, drones can now travel significantly greater distances than they could just a few years ago. While this sounds like technological progress, it is giving military and civilian security structures quite a headache. No wonder, then, that the question of effective countermeasures has now risen to the top of the agenda for defense strategies worldwide. This is precisely where the business model of the Australian technology company DroneShield comes into play. Within a short time, the company has transformed itself from a speculative niche provider into one of the key beneficiaries of this development. It is currently making the leap into a completely new entrepreneurial dimension.

The latest financial figures underscore this momentum. Revenue surged to the equivalent of approximately AUD 216.5 million in 2025, while the company posted a net profit for the first time. At the same time, its international footprint is being massively expanded. With new production sites in Europe and the US, DroneShield is increasing its annual manufacturing capacity from the current USD 500 million to up to USD 2.4 billion. A recently concluded radar partnership with a Dutch specialist also underscores the strategic intent to broaden the technology portfolio further.

The growing importance of recurring revenue is striking. Revenue from software subscriptions increased by more than 300% in 2025, and management plans for them to account for around 30% of total revenue in the medium term. This increases predictability but does not make the company independent of large hardware orders. For investors, DroneShield therefore remains a double-edged investment. While the strategic positioning in the growing drone defense market is compelling, the valuation following the price rally and unresolved governance issues should not be underestimated. The stock is currently trading at AUD 3.57.

The battery megatrend acts as a structural disruptor. Whoever controls the value chain secures decisive advantages. BYD is leveraging its technological and infrastructural integration to build momentum in the automotive market while simultaneously scaling a stable energy storage business. NEO Battery Materials is using military personnel in South Korea to gain access to security-critical markets and expand its capacity. DroneShield, in turn, is benefiting from the increased range of modern drones and establishing itself as a systemically important provider in defense.