The beneficiaries of the raw materials crisis: How BYD is circumventing the problem, and how Power Metallic Mines and Albemarle are profiting

BYD – A pillar of stability in turbulent times

While many players in the electric mobility sector are struggling with supply bottlenecks and skyrocketing raw material prices, BYD is navigating these turbulent waters with relative ease. The key to this robustness lies in an almost unique vertical integration. The Company not only manufactures the vehicles themselves, but also produces the core components, namely the batteries and semiconductors, on a large scale, in-house. This remarkable control over the entire value chain makes the Chinese giant less dependent on external suppliers. A real game changer here is the in-house LFP blade battery. It deliberately relies on readily available raw materials such as lithium and phosphate, playing to its strengths in terms of safety and cost efficiency. BYD's strategic independence gives it a real competitive edge.

However, the latest sales figures paint a mixed picture. In September 2025, BYD recorded a noticeable decline in deliveries in its home market of China for the first time this year. At 393,060 units, the volume was around 6% below the same month last year. This setback reflects the fierce price war and increasing competitive pressure from emerging local competitors. In response, management has revised its ambitious annual target for 2025 downward. This contrasts with impressive expansion in Europe, where BYD recorded an 880% jump in sales in Germany in the same month and is massively expanding the number of sales outlets.

Despite the short-term setbacks in its home market, the stock offers compelling arguments from a strategic perspective. The deep integration of the value chain and the strong financial position with healthy cash flow create a solid foundation. This financial strength allows BYD not only to withstand price wars, but also to aggressively pursue international expansion. The focus on high-growth markets such as Europe, combined with a broad and technologically mature model range, positions the Company ideally to benefit from the global transport revolution in the long term. For investors who believe in the future of e-mobility, BYD therefore remains one of the most sound bets. Friday's announcement that Trump will raise tariffs on China by 100% from November 1 sent the stock plummeting. A share currently costs EUR 11.345.

Power Metallic Mines – Coming into focus

The NISK project in Quebec is cementing its reputation as a promising polymetallic deposit. The summer drilling program completed in September provided further robust data that underscores the high potential. What makes NISK special is its wide range of economically important metals: The deposit contains significant grades of copper, nickel, cobalt, palladium, and platinum, complemented by gold and silver. This combination of base metals for the energy transition with valuable precious metals is what makes this deposit so attractive. Initial results from the Lion Zone, with copper equivalent values of over 15% in some cases, underscore the quality.

Equally important was the strategic expansion of the area. Power Metallic secured massive new exploration areas in two separate deals. A deal with Li-FT added around 170 sq km. Notably, the seller insisted on shares as payment. This can be seen as a clear sign of confidence. In addition, previously restricted areas directly adjacent to the Lion Zone were secured after an outdated restriction by Hydro-Québec was lifted. These land acquisitions lay the foundation for significant growth in the resource estimate.

In parallel with its flagship project in Quebec, Metallic is expanding its portfolio internationally. A significant step forward was taken with the acquisition of a 100% license in the Jabal Sayid Belt in Saudi Arabia, a region known for copper-gold-zinc deposits. The project benefits from the government's Exploration Enablement Program, which promotes financing and knowledge transfer. CEO Terry Lynch commented, "We are committed to working with local stakeholders and leveraging our expertise to unlock the immense potential of the Jabal Baudan property." This move diversifies country risk and positions the Company in one of the emerging mining regions. The stock is gradually climbing and is currently trading at CAD 1.46.

Albemarle – New momentum in the lithium market

Beijing announced that it will tighten controls on exports of lithium batteries and key materials from November 2025. This affects not only raw materials, but also technologies and manufacturing equipment. This strategic move aims to protect the domestic supply chain and make it more difficult for foreign competitors to access important know-how. For a global player like Albemarle, which is less dependent on Chinese imports, this development could be an advantage. It is likely to strengthen the US company's competitive position in the global market and increase its bargaining power.

Albemarle is currently in robust shape. The Company significantly exceeded EBITDA expectations in the last quarter, even though sales were below the previous year's level. The decisive factor is the successful cost-cutting programs, which have already achieved almost 90% of their targets and are strengthening liquidity. In addition, Albemarle is continuing its consistent dividend policy. It has now paid dividends for over 126 consecutive quarters. These solid fundamentals provide a strong foundation in a volatile commodity environment.

Analyst opinions are mixed, but the trend is clear. Although UBS recently lowered its price target slightly to USD 85, Mizhuo Bank raised its target to USD 92. The average price target is currently around USD 87. The long-term forecasts are optimistic. The Company is expected to achieve annual profit growth of almost 70% over the next three years. Albemarle remains one of the key players for investors who want to participate in the megatrends of electromobility and energy storage. The stock is currently trading at USD 89.86.

The raw materials crisis is forcing strategic realignments, from which some companies are benefiting. BYD demonstrates that its long-established vertical integration is the best protection in the crisis and allows it to operate largely unaffected by supply bottlenecks. Power Metallic Mines is benefiting directly by positioning itself as a polymetallic supplier through massive land acquisitions in Quebec and diversification in Saudi Arabia. Albemarle, in turn, is likely to benefit from China's export restrictions as a less dependent global player and is strengthening its market position through robust cost reductions.