War, raw material shortages, cancer: Capitalize on megatrends with Rheinmetall, Antimony Resources, Merck KGaA

Rheinmetall – Sale of the automotive business?

The Düsseldorf-based defense group Rheinmetall recently announced several operational milestones. A European NATO country awarded the largest single order in the Company's history to Rheinmetall Denel Munition, worth several hundred million euros, for 155 mm artillery shells and propellants. Deliveries are scheduled to run through 2027. At the same time, the fourth Role 2 mobile rescue station was delivered to Ukraine, including training for personnel. The modular system, consisting of three truck-based modules, can set up a fully functional field hospital near the front line within minutes.

Otherwise, technological advances dominate the picture. At the RMMV Mobility Days in Vienna, the joint venture with MAN presented the new protected TGS-Mil truck (6x6/8x8), which simplifies global deployment thanks to modular protection systems and civilian components. Also new is the automatic 40 mm SSW40 grenade launcher, which was tested for the first time in live fire. With a range of up to 900 m and airburst capability, it is set to revolutionize infantry groups. In the US, all activities are now operating under the name "American Rheinmetall," which represents a step toward a unified brand perception.

Rheinmetall is exploring the sale of its civilian automotive business, with seven interested parties currently in the running. CEO Papperger is focusing primarily on a fair valuation and job guarantees. At the same time, cooperation with industrial partners is being advanced, as seen with Volkswagen, for the utilization of capacities at the Osnabrück plant. The Company recognizes that it needs to increase production capacity to sustain growth. The expansion targets remain ambitious. By 2027, 1.5 million artillery shells are to be produced annually. The stock's surge, currently trading at EUR 1,735.00, appears to have come to a temporary halt.

Antimony Resources – The invisible key metal

Antimony is a strategic raw material. It makes ammunition harder and more precise for defense companies, such as Rheinmetall, and is indispensable for flame retardants and semiconductors for chemical companies like Merck. However, its supply hangs in the balance. China and Russia control up to 80% of the market, and China's export restrictions are driving prices up. For Western companies, dependence on these sources is becoming a strategic Achilles' heel, particularly in the context of global tensions and rising military expenditures. This is precisely where Antimony Resources from Canada comes in. Its Bald Hill project in New Brunswick could become a beacon of hope for the West.

In early July, initial drilling yielded spectacular results. Drill hole BH-25-04 encountered 28.8% antimony, the highest grade deposit in North America. The next coup followed in mid-July. The first drilling phase, covering more than 3,150 m and 16 drill holes, revealed massive stibnite mineralization in 70% of the drill holes, including a continuous 20 m zone. Additionally, prospecting identified antimony-bearing stibnite mineralization at a depth of 400 m, further confirming the potential scale and robustness of the Bald Hill deposit. Historical data indicate up to 1 million tonnes grading 4.11 – 5.32% antimony. This could be a lifeline for Rheinmetall and Merck & Co. Industry urgently needs independent sources, and Antimony Resources is ideally positioned with year-round drillable infrastructure.

The next milestone was reached on July 24. The Company closed a financing deal with a strategic mining investor for CAD 575,000. The money will be used for further exploration. CEO Jim Atkinson commented, "With this new strategic resource investor on board, we remain focused on confirming that we have one of the highest-grade antimony deposits in North America." That is just right, because the clock is ticking. With each new drill result, the chance that North America's next antimony mine will be developed here grows. Well-positioned, high-grade, and politically supported, Antimony Resources is leveraging its strengths at a time when the market is seeking alternatives to China. The share price has already doubled since the end of June as the market slowly recognizes the importance of antimony. The share currently trades at CAD 0.21.

Merck – A focus on three pillars

With 62,000 employees and revenues of EUR 21.2 billion in 2024, Merck's Life Science division remains the foundation of the group. Although the laboratory chemistry and biotech equipment division is struggling with currency effects and trade uncertainties, it is benefiting from the lifting of US-Chinese special tariffs. New automation solutions, such as the AAW™ platform developed with Opentrons technology, optimize laboratory processes and strengthen the competitive position. The digital M-Trace® software and ChemisTwin® platform underscore the focus on reproducible research results.

The billion-dollar acquisition of SpringWorks Therapeutics was completed on July 1, catapulting Merck into the premier league for rare tumors. The acquired portfolio includes Ogsiveo® for desmoid tumors and Ezmekly®, the first EU-approved therapy for patients with neurofibromatosis type 1. At the same time, the Company's pipeline is delivering promising data. Antibody-drug conjugates such as M9140 for colorectal cancer and the Phase 3 candidate pimicotinib complement the strategy. Partnerships such as the one with Washington University in St. Louis are also accelerating the translation of research into therapies.

In the semiconductor business, Merck is focusing on cooperation rather than going it alone. The alliance with Siemens, Intel, TRUMPF, and ZEISS aims to strengthen Europe's role in AI-based chip manufacturing. The focus is on material innovations and scalable production processes, which are critical for high-performance semiconductors. Despite a shortage of skilled workers and regulatory hurdles, the Company views itself as an enabler of technological leadership in this area. The investment of USD 250 million in the St. Louis site underscores its long-term commitment. One share currently costs EUR 112.50.

The megatrends of defense, critical raw materials, and pharmaceutical innovation will dominate in 2025. Rheinmetall is benefiting massively from geopolitical tensions through record orders and advanced defense technology, while at the same time exploring the sale of its automotive business. Antimony Resources is positioning itself as a strategic hope for Western antimony supplies with spectacular drilling results and excellent infrastructure. Merck is relying on three pillars: a strong Life Science division, growth through targeted acquisitions such as SpringWorks Therapeutics, and semiconductor alliances to strengthen European chip manufacturing.