​Northvolt has recently announced significant changes to its production strategy, which will impact key sites. As part of the new strategy, cathode material production at the Northvolt Ett plant in Skellefteå, Sweden, will be stopped although plans for cell production at the facility will proceed as scheduled.

In another move, the Northvolt Fem program in Borlänge, Sweden, which was intended to be a new production site for cathode materials, will also be discontinued. The Borlänge site, which was only acquired in 2022, is now set to be sold, marking a significant shift in the company's plans for its Swedish operations.

Meanwhile, Northvolt's largest battery system factory in Europe, Northvolt Dwa in Gdansk, Poland, remains a critical part of the company’s strategy. However, the company is actively seeking partners or investors to help finance its operations at the Polish site, indicating potential challenges in maintaining self-sufficient operations.

Adding to this, Volkswagen (VW), one of the largest car manufacturers in the world, recently revealed its decision to close a plant in Germany. The closure appears linked to decreased demand for combustion engine vehicles, ongoing cost pressures, and the global shift toward electric cars. These closures reflect mounting difficulties for European automakers as they navigate the transition to EVs, facing both technological challenges and stiff competition from foreign markets, particularly China.

According to Bloomberg news, nearly a third of large auto plants in Europe made fewer than half the vehicles they have the capacity to make. Car sales are nearly a fifth below pre-pandemic levels, and demand for EVs is lower than expected. That's leaving factories half-empty and looming structural problems for Europe where the auto industry accounts for over 7% of the EU’s GDP and more than 13 million jobs.

Meanwhile, Chinese automaker BYD (Build Your Dreams) is rapidly growing, selling over 3 million cars annually, compared to Tesla’s 1.8 million sales. BYD's success underscores China’s ascendance as the new epicentre of global car manufacturing, particularly in the EV sector. This increase is encouraged by strong government support, access to critical raw materials, and an extensive domestic supply chain that enables the production of affordable EVs at scale.

Chinese carmakers are rapidly growing their global footprints, with BYD planning plants in Thailand and Hungary, among other countries. The company is also buying its German distributor Hedin Electric, as it moves to scale up in Europe.

By 2030, Chinese carmakers could see their share of the global EV market double to a third, UBS has forecast, with European firms suffering the biggest loss of market share as a result.

The shift toward China as the world’s leading car manufacturing hub has profound implications for the global supply chain, especially for companies in the critical raw materials sector.
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With Northvolt and VW signalling supply issues and a retraction of Europe’s manufacturing base, critical raw materials companies may see greater opportunities in Asia. However, the geopolitical risks and supply chain vulnerabilities remain significant.

To thrive companies must navigate a rapidly shifting landscape, where China’s dominance in EV production is setting the pace for the global market. 

We continue to see strong investment in Europe in new battery technologies, substitution processing and materials and recycling technologies. 

InvestorHub is finally doing something we have long championed – making the Investor Relations function a value centre rather than a cost centre.

Founders, Ben Williamson and Rhys Davis transitioned “Fresh Equities” to a subscription model in 2022, focusing on software that enhances direct communication between companies and shareholders.

This pivot, discussed in a recent article in The Australian Financial Review (AFR, July 29,2024) allowed InvestorHub to sign over 120 clients from the ASX and LSE within a year. Their innovative platform, combining shareholder analytics and direct communication tools, addresses the crucial need for engaging mid-tier investors who significantly influence share prices.

InvestorHub is focused on what has been a neglected area in shareholder communications – providing deep intel to companies on their registry, shareholder location, and shareholder communications with the company.

The Company says on its website “Being listed should be superpower. Rasing capital in days, not months. Liquidity for stakeholders and incentives for the team”

As UK Managing Director, Alex Stella, notes “we have developed significant IP that allows listed companies to form direct relationships with their domestic and foreign investors. This uniquely empowers issuers to identify who their existing and prospective investors are and then provide them with detailed information and correspondence. The concept is simple but very effective - investors should receive a proper customer experience.”

One of the rationales for more effective shareholder communication is to build a strong relationship between an investor and the company they are investing in. An engaged and listened to investor is likely to be a longer-term investor.

Every investor interaction is measured, analysed and compiled into an engagement analytics dashboard and monthly report. This assists public companies track the impact of their investor marketing and determine return on investment.

The company’s expansion into the UK market and interest from North American exchanges reflect its global appeal. InvestorHub’s AI tool such as translation of investor communications into different languages such as German is proving popular for Companies with dual listing on Frankfurt Stock Exchange.

Some of the features on InvestorHub include an Intelligence Hub, Interactive Investor Hub, Communications Hub and a Raise Hub. 

We have long said investors are a key asset for listed companies and should be treated more like customers. InvestorHub’s features allow for Direct to Investor marketing to attract new investors and engage existing shareholders more effectively.

Investor Hub and similar SAAS (“Shareholder As A Service”) tools will play an increasingly important role in companies investor relations strategies.

Here in Germany the Frankfurt Stock Exchange and associated Germany exchanges are playing an increasingly important role in assisting Australian, Canadian and UK listed companies increase and diversify their global investor base.

Companies like Droneshield (ASX: DRO) are seeing very strong volumes on the two main German exchanges – Frankfurt and Tradegate. German retail investor interest in quality ASX and global listed companies with a compelling narrative, strong business case, and quality management will only continue to increase. 

We consider local knowledge, local media contacts and local investor and stakeholder networks are, and will continue to be, a vital components of developing and nurturing global investors – especially so in Europe.
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The optimal IR solution for companies looking to expand their European investor base may well be a collaboration and harmonisation of SAAS platforms such as InvestorHub and local organisations with specialised local knowledge, a deep well of contacts and media partners. 

​Exploring Grants and Subsidies in Europe.

Europe offers a broad spectrum of grants and subsidies aimed at fostering innovation, economic growth, and competitiveness across various sectors.

Among these, the European Innovation Council (EIC) Accelerator and the Critical Raw Materials Act (CRMA) strategic projects stand out as key initiatives designed to support high-potential companies and projects. These programs are crucial for driving Europe’s transition to a sustainable and competitive economy, particularly in the face of global challenges.

The EIC Accelerator: Fueling High-Risk, High-Gain Innovations
The EIC Accelerator is one of the flagship funding programs under the broader Horizon Europe framework, designed specifically to support small and medium-sized enterprises (SMEs) and start-ups with breakthrough innovations. This program is particularly targeted at deep-tech companies that have the potential to create new markets or disrupt existing ones.

Key Features of the EIC Accelerator:

1. Blended Financing: The EIC Accelerator offers a unique funding model that combines grants and equity investments. The grants can cover up to 70% of eligible costs, up to €2.5 million, for innovation activities such as demonstration, prototyping, and testing. Additionally, equity investments of up to €15 million are available to scale up innovations and bring them to market.
2. Tailored Business Acceleration Services: Beyond financial support, the EIC Accelerator provides tailored coaching, mentoring, and access to a wide network of investors, corporates, and peers. This holistic approach helps companies navigate the complex path from concept to commercialization.
3. Support for All Stages: The program supports innovations at different stages of development. Whether a company is in the early stages of developing a prototype or ready to scale its product, the EIC Accelerator can provide the necessary resources and guidance.

The EIC Accelerator is highly competitive, with applications evaluated based on their excellence, impact, and implementation strategy. The program particularly favors projects that align with the European Union’s strategic priorities, such as the Green Deal, digital transformation, and deep-tech innovation.

EU CRMA Strategic Project Applications: Securing Europe’s Supply of Critical Raw Materials
In a world increasingly dependent on advanced technologies, the supply of critical raw materials (CRMs) has become a strategic priority for the European Union. The Critical Raw Materials Act (CRMA) is part of the EU’s broader strategy to secure a sustainable and resilient supply of CRMs essential for key industries like renewable energy, electric vehicles, and digital technologies.

First Call for EU CRMA Strategic Projects:
The first call for strategic projects under the CRMA is a significant step toward achieving the EU’s goals of reducing dependency on non-EU countries for critical raw materials and strengthening its supply chains. The call opened on 22 May and closed on 22 August 2024.

These projects are expected to contribute to the exploration, extraction, processing, recycling, and substitution of CRMs within the EU.
Key Aspects of the CRMA Strategic Projects:

1. Funding Scope: The CRMA strategic projects will receive substantial funding from various EU programs, including Horizon Europe, the European Regional Development Fund (ERDF), and the Just Transition Fund (JTF). This funding aims to support large-scale projects that can have a substantial impact on securing the EU’s supply of CRMs.
2. Focus on Sustainability: The projects are expected to align with the EU’s sustainability goals, ensuring that the exploration, extraction, and processing of CRMs adhere to the highest environmental and social standards. This is crucial for maintaining public support and ensuring long-term viability.
3. Public-Private Partnerships: The CRMA encourages collaboration between public and private entities to leverage expertise, share risks, and mobilize additional investments. This collaborative approach is essential for addressing the complex challenges associated with CRM supply chains.

Conclusion
The EIC Accelerator and the first call for EU CRMA strategic projects represent critical components of the European Union’s strategy to drive innovation and secure the supply of essential resources.

While the EIC Accelerator supports groundbreaking innovations that can lead to new market opportunities, the CRMA strategic projects focus on ensuring that Europe has the necessary raw materials to sustain its technological and industrial base.

Both initiatives reflect the EU’s commitment to fostering a competitive, sustainable, and resilient economy in the face of global challenges.
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For companies and research institutions across Europe, these programs offer invaluable opportunities to secure funding, access new markets, and contribute to the EU’s strategic objectives. As the global landscape continues to evolve, such initiatives will play a pivotal role in shaping Europe’s future.
Contact Austlinx today to see how we can assist with grants and subsidies.

German Media engagement. Droneshield has successfully developed relationships with German stock media such as Der Aktionär and these assists develop German retail engagement.

Strong sales growth. The main reason for retail buying according to studies is the expectation of future cash flows – either in form of dividends or capital growth from sale of shares. Both require sales growth. Droneshield reported sales of A$24 million in H1 2024 – up from $A 11 million in H1 2023.

Ukraine war and reliance on drone technology. The war in Ukraine has been characterised by massive drone deployment, with thousands of unmanned aerial vehicles (UAVs) used to track and attack enemy forces, guide artillery and bomb targets. In Ukraine over 2,000 SMEs are working on drone technology. This is also feeding significant media interest in Germany and Europe.

Understanding the German equity markets. Due to the nature of German Stock Exchange regulations, there are very few small and mid-cap companies with a primary listing on Frankfurt. There were only a dozen primary German listings on Frankfurt Stock Exchange in last 2 years including Porshe. Most small and mid-cap companies in German are private or owned by venture capital. Therefore, retail investors wanting to invest in publicly traded small-mid cap companies (particularly in biotech, CRM, and tech sectors) are drawn to companies with a primary listing on ASX or TSX.

In these markets with low liquidity in the small and mid-cap market, companies should think about maximising their primary exchange listing and looking a dual listings such as Germany and Frankfurt Stock Exchange. 
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 The EU market is a huge market and opportunity for Australian companies.
 
There are 27 EU member states, containing a population of around 450 million people and a GDP of around € 16 trillion.
 
Each country has very specific, cultural and bureaucratic norms which can be complex and confusing.
 
Here in Germany, different regional ecosystems tend to specialise in different technical industries. There are 12 industry hubs in cities across Germany. Munich and Stuttgart metropolitan areas are known for high tech and automotive manufacturing. The Rhine-Neckar region is a centre of the chemicals and IT industry, and Frankfurt is the financial centre. High per­formance high-tech centres are developing rapidly in former East Germany, particularly the “lighthouse regions” of Dresden, Jena, Leipzig.
 
GTAI (Germany Trade and Invest) is an ideal contact for Australian companies looking to establish business operations in Germany.

Collaborations and partnerships are highly valued in Europe. The Fraunhofer-Gessellscaft is one of the world's leading applied research organisations and plays a crucial role in working with Industry in areas such as Artifical Intelligence, Quantum technologies, Resource efficiency and climate technologies.

Partnering with a German or EU research organisation such as Fraunhofer is a great way to build relationships, develop EU IP and be eligible for grants and subsidies in Europe.
 
There are 5 models for successfully scaling in Europe for Australian companies:

1. Global commodity strategic advantage such as resources like BHP and Fortescue but also smaller Australian resource companies that can assist Europe with goals of the EU Critical Raw Materials Act (CRMA).

2. Product Innovators - Australian companies with world-leading product or innovation capability such as CSL and ResMed. This also applies to small and mid cap companies such as those in the Hydrogen and clean energy sectors.

3. Business Model Pioneers - Australian companies developing innovative approaches to doing business that produces a competitive advantage. An example is Macquarie Infrastructure Fund.

4. Software Innovators - Australian software or tech companies that can expand rapidly by leveraging a scalable technology in a market segment that is specific and not over serviced by European companies. An example is EventsAir an events management software company.

5. Leveraging IP developed in Australia and collaborating with a German or EU company to develop and commercialise in EU. An example is Neometals (ASX: NMT) which developed Hydrometallurgical battery recycling capability in Australia and partnered with SMS Group in Germany to form a JV (Primobius) to develop and commercialise - resulting in agreements with Mercedes Benz.

We assist Australian and global companies refine, implement, adapt, and analyse their European strategy and make vital introductions with EU stakeholders and investors.

Well done to Western Australian company, Uluu for receiving AU $200,000 from the State Government’s Innovation Booster Grant (IBG) and the new Commercialisation Bridge Grant (CBG) programs.

The company recently raised AU $8.6 million to build a pilot plant, progress with first-to-market agreements, and develop a global brand around the Uluu story. As well as existing investors Main Sequence, Possible Ventures, Alberts and Misletoe Inc, some headline names such as Neil Perry from Rockpool and Karlie Kloss also invested.
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Uluu is committed to reduce global use of plastics which are produced from fossil fuels and release microplastics causes the accumulation of harmful waste after disposal and endangering flora, fauna, and human wellbeing.

Uluu uses farmed seaweed to produce PHAs - materials that are biocompatible, yet still provide the plastic-like properties. PHAs are reusable, recyclable, and compostable. They biodegrade, even if lost at sea! 

Uluu’s products are produced inside fermenters – not unlike brewing beer. The process involves 4 major steps.

1. Cook Seaweed - extract the sugars from seaweed using special enzymes
2. Ferment PHAs - Feed seaweed sugars to the PHA producing microbes
3. Extract PHAs – remove PHAs from inside the microbes
4. Make pellets – melt the PHAs to make pellets ready for product manufacturing.

Farmed seaweed can be regeneratively grown to entirely replace the fossil fuels we use to make four hundred million tonnes of plastic every year.

This is exactly the type of company EU impact investors are looking at!

Uluu co-founders Michael Kingsbury and Julia Reisser

Liquidity and volumes are down on most global exchanges from the highs of many years. In times of relatively high inflation and interest rates, retail investors tend to rush for cash. Larger institutional investors also increase cash and other no equity investments.

We consider in the global age, companies need to engage with as many investors as possible - not just investors on home exchange.

There are multiple avenues for doing this such as OTC listing on NASDAQ.

In Europe the most effective way for listed global corporates to engage and connect with German and EU investors is through a dual-listing on Frankfurt Stock Exhange. This is a simple and in-expensive process which provides access to a vast retail investor network. The customers on Trade Republic - the major EU neo-broker total more than 2 million for example.

The great benefit of the Frankfurt Stock Exchange quotation board listing is it is quick, efficient and has once completed there are no ongoing regulatory or compliance obligations.

Australian companies such as Droneshield Ltd (ASX: DRO) see huge engagement and trading on German exchanges with volumes often over 10 million shares alone. The great benefit of this for companies is there is broadening of the investor base with shareholders actively engaged from countries such as Germany, Austria, France and Switzerland.

List local and connect globally today.

On the 23rd May the EU Critical Raw Materials Act (CRMA) entered into force. The main objective of the CRMA is to establish and maintain a secure and sustainable supply of Critical Raw Materials to the EU.
The CRMA lists 34 materials which are considered strategic. Of these 17 are considered critical such as copper, cobalt and battery grade graphite.

The CRMA calls for specific goals in relation to mining, recycling and processing of critical raw materials.

• 10% of all critical raw materials consumed in the EU to be mined and produced in the EU by 2030. Therefore, new exploration projects in the EU, will receive increased attention and potentially more accessible and favourable extraction conditions. 
• A significant increase in recycling efforts, totalling up to 25 % of annual consumption in the EU by 2030. Waste landfills in Europe are expected to comprise large quantities of critical raw materials that could turn into lucrative mines. EU Member States are encouraged to devise measures to increase the circularity of their economies.
• 40% of all critical raw materials consumed in the EU are to be processed in the EU by 2030.

 
The CRMA is designed to strengthen all stages of the European critical raw materials value chain, diversify the EU’s imports to reduce strategic dependencies, improve the EU’s capacity to monitor and mitigate risks of disruptions to the supply of critical raw materials, and improve circularity and sustainability.

The first call for projects to be deemed “strategic projects” opened on 23 May and will close on 23 August 2024.

Those projects that receive 'Strategic Project' designation will benefit from more streamlined and efficient permitting procedures, as well as facilitated access to finance avenues.

Projects from third party countries such as Australia may qualify if they meet the objectives of the CRMA and the wider EU Green Deal.

Strategic Projects should be flagship projects with respect to technological innovation and sustainability. Applications to be lodged on the EU portal must include supporting documentation including detailed technical studies, timetable for development, permitting information, and sustainability practices. Also, a business plan should be attached for assessment of the viability of the project.

For projects in “third countries” such as Australia and Canada (outside the EU but considered strategic partners) the EU has pledged to work with those partner countries to assist with permitting and sustainability practices where possible.

In this respect, the signing of the MOU on a CRM partnership between Australia and the EU which was signed on 28 May 2024 was an important and integral step in the EU CRM Act for Australia.

The partnership seeks to enable the EU to diversify its supplies of materials necessary for the green and digital transitions, whilst contributing to the development of Australia's domestic critical minerals sector.
The partnership covers the entire critical and strategic minerals value chain: exploration, extraction, processing, refining, recycling, and processing of extractive waste.

 In addition to jointly developing projects along the entire value chain in the EU and in Australia, the partnership will also explore cooperation in countries where the EU and Australia have mutual interests, focusing on reducing environmental impacts and benefiting local communities. Additionally, it promotes innovative and digital technologies and services for mining, and other projects along the critical minerals value chain.

The agreement seeks to enhance cooperation between Australia and the EU in 3 main areas:
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• Integration of sustainable raw materials value chains, including networking, joint facilitation of projects (e.g., via joint ventures), creation of new business models and promotion and facilitation of trade and investment linkages, ensuring the well-functioning, sustainability, and resilience of these critical supply chains.
• Cooperation on research and innovation along the raw materials value chains, including on minerals knowledge and the minimisation of environmental and climate footprint.
• Cooperation to promote high environmental, social, and governance standards and practices, as well as improved policy alignment, driven by full respect of worker's conditions and safety, and by the need of a sustainable and secure production of critical minerals.

Following the signature of the MoU, a roadmap with concrete actions will be jointly developed to put the Strategic Partnership into practice, over the next six months.

Equity markets in Europe have picked up from a very dismal 2023.

There is always robust interest in quality ASX /TSX /CSE listed companies with a dual-listing in Frankfurt. Especially where those companies have a sustainable purpose and vision, clear strategic direction with strong competitive advantage, capable board and management and unique value proposition.

Stocks that see the greatest level of support are in the areas of critical raw materials, uranium, green metals and minerals, biotech and medtech, gold, clean energy and technology.

ASX listed companies such as Droneshield (ASX: DRO) and Brainchip (ASX: BRN) see very solid support om German exchanges. We also see Australian companies with quality global projects in the areas of critical raw materials engage very strongly such as Winsome Resources (ASX: WIN) with a very strong lithium project in Canada.

Uranium stocks in particular are trading very well this year in Germany such as Deep Yellow (ASX: DYL).

2024 has seen Novo Nordisk become the largest European company by market capitalisation and this has reignited interest in quality biotech and medtech stocks.

The outlook continues to be bright for quality ASX / global companies to increase EU investor interest and engagement.​