Who benefits, who suffers? The raw materials crisis in e-mobility: BYD, Graphano Energy, and Volkswagen

BYD – Why batteries are becoming a decisive competitive advantage

The Chinese electric vehicle market is like a roller coaster ride. While sales figures are weakening, manufacturers continue to turn the price screw. BYD is sending a clear signal with discounts of up to 34% on selected models, while competitors such as Tesla and NIO are vying for buyers with cheaper models and financing offers. These ongoing price wars are eating into margins and forcing companies to reposition themselves. In this harsh environment, it is becoming increasingly clear that in the long term, only those with a decisive technological advantage will win, and this advantage is increasingly found under the hood.

In this race, one component is coming into focus: the battery. It is not only the most expensive single part of an electric vehicle, but also the key to performance and everyday usability. This is where BYD scores with its deep vertical integration. The Company is not only a vehicle manufacturer, but also one of the world's largest battery producers. Its "Blade" battery sets standards in terms of safety and cost. In addition, BYD is working on ultra-fast charging with its new "Super E-Platform," which promises a range of almost 400 km in just five minutes. This control over the entire value chain gives BYD unique cost advantages.

But even BYD has to face critical questions. The Company recently had to recall over 115,000 vehicles due to design and battery defects, underscoring the technical challenges of high-speed growth. On the positive side, however, is the strategic partnership with Apple to manufacture smart home products in Vietnam. It demonstrates BYD's expertise as a reliable manufacturing partner beyond the automotive industry and diversifies its business. For investors, BYD is therefore a contradictory but fascinating story. A market leader with unique strengths that is simultaneously experiencing the growing pains of an entire industry. The stock is currently trading at EUR 11.54.

Graphano Energy - Drill results highlight potential

The latest news from Graphano Energy in October provides clear indications of the growing value of its portfolio in Québec. The focus was on the exploration program at the Black Pearl project, where initial drilling was carried out on this property. The final results now published confirm extensive near-surface graphite mineralization. Of particular note is drill hole BP25-06, which returned a grade of 4.81% graphite carbon (Cg) over a length of more than 12 m, including a higher-grade zone of 6.63% Cg over more than 7 m. These results indicate that the discovered zones are open in all directions and therefore have significant expansion potential. The material can be processed directly at Northern Graphite's facility.

The strategic importance of Black Pearl is underscored by its immediate proximity to the Company's advanced Standard Property project. Together, these two projects form an extensive, largely unexplored district. The recent drilling campaign was designed to assess large-scale potential and to improve understanding of the geological structure. The results indicate that all tested conductive zones identified through geophysical measurements are indeed attributable to graphite mineralization, validating the exploration methodology and highlighting significant untested areas across the 4,149-hectare property.

For investors, the consistency of these results is remarkable. The final drill results now released fit seamlessly with the promising drill hole data previously reported, underscoring the reliability of the exploration model. Graphano Energy is thus systematically building a critical mass of graphite resources in a mining-friendly region. In a global market increasingly seeking non-Chinese graphite sources, the Company is positioning itself as a potential reliable supplier for the North American battery supply chain through its projects in Québec. The next steps will be further exploration and evaluation of the overall potential of this emerging graphite district. The stock is currently trading at CAD 0.20.

Volkswagen - Cost-cutting programs and leadership changes shape the share price

Profound changes are in store at Volkswagen. As a major shareholder, the Porsche-Piëch family has ended the dual leadership of Oliver Blume, who will now only head the VW Group. From 2026, former McLaren boss Michael Leiters is set to take the helm at Porsche. His experience at Ferrari and McLaren is expected to give the sports car manufacturer new momentum, which is currently struggling with a slump in profits, weaknesses in its Chinese business, and the consequences of US tariffs. The pressure on both companies is immense, and expectations for the new leadership are correspondingly high.

The financial situation at VW is tense. According to BILD, the Company is estimated to be short of EUR 11 billion in free cash flow for the coming year. This gap is forcing action. Savings are being made almost everywhere, including marketing, sales, and investments. In addition, the Company plans to sell off holdings such as engine manufacturer MAN Energy Solutions and design subsidiary Italdesign. And if that is not enough? Then new loans will simply become more expensive in the event of a downgrade. This would further slow down urgently needed investments in the future, which could set off a vicious cycle.

Despite the challenges, there are also rays of hope. Deliveries of battery-electric vehicles rose sharply globally, with particularly strong growth in Europe and the US. While premium brands such as Audi and Porsche are struggling, the strong core VW brand, with brands such as Skoda, continues to carry the group. The future will show whether the cost-cutting measures, the change in leadership at Porsche, and the focus on affordable e-mobility will be enough to sustainably support the recovery course that has been set and ensure long-term competitiveness. Currently, one share costs EUR 90.60.

The raw materials crisis in e-mobility is separating the strategists from the driven. BYD is benefiting from its unique vertical integration and setting the benchmark for industry with its cost-effective blade batteries and ultra-fast charging. Graphano Energy scores as a raw materials explorer with promising drilling in Québec and is positioning itself as a potential supplier for the North American battery supply chain. Volkswagen, on the other hand, is suffering from massive financial pressure, has to save billions, and must prove its recovery course in uncertain terrain despite management changes and margin issues.