The zinc rally is gaining momentum: as inventories dwindle and demand from the energy transition explodes, prices are testing a three-year high. Investors are sensing opportunity, as the combination of structural supply shortages and geopolitical production programs promises sustained tailwinds for the industrial metals market. Those holding the right positions now could benefit from the tightening supply. In addition, there is a supply gap in silver. We take a closer look at three companies that are particularly in focus in this environment: the electric vehicle pioneer BYD as a driver of demand, the explorer Group Eleven Resources with its zinc, silver, and copper project, and silver-zinc producer Hecla Mining.
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BYD – Overcoming raw material challenges in the electric vehicle boom
Chinese electric vehicle pioneer BYD faces enormous raw material challenges, which are increasingly coming into focus for investors. Copper in particular plays a crucial role. Each of the group’s pure electric vehicles requires up to 83 kg of the red metal, about three times as much as a combustion engine vehicle. With around 4.6 million deliveries last year, the demand adds up to an enormous volume. While zinc plays only a minor role in corrosion protection for BYD, silver presents a remarkable picture. According to reports, the group has hoarded around 3,700 tons of the precious metal to secure production for years to come. It is the largest known purchase of its kind in the automotive industry.
The company’s raw materials strategy thus goes far beyond day-to-day procurement. In view of rising copper prices, which at times broke the USD 13,700 mark, BYD is securing access to this critical material through long-term partnerships. The massive silver reserve, in turn, protects against bottlenecks in Chinese refineries, which control a large part of global processing. This strategic stockpiling gives the group a significant competitive advantage over manufacturers who have to buy on the spot markets at short notice.
The latest company reports show how much BYD is focusing on vertical integration. While January sales were noticeably below the previous year’s level at just over 210,000 vehicles due to expiring tax breaks in China, exports exploded by over 50%. Almost every second vehicle sold went abroad. This shift underscores the group’s global realignment, which is accompanied by a refresh of its model range. The announced upgrades to the Qin sedans with extended ranges and a technology day planned for the end of February are intended to demonstrate the company’s innovative strength. The share is currently trading at EUR 10.505.
Group Eleven Resources – A zinc project becomes a multi-metal discovery
What began as a classic zinc exploration project is increasingly turning into a polymetallic system story for Group Eleven Resources (TSXV:ZNG). The latest drill results from the Ballywire discovery in the 100% owned PG-West project in southern Ireland no longer read like the usual find of an explorer. One hole stands out in particular: 15.3% zinc (Zn) plus lead (Pb) was intersected over 29.9 m – but the real sensation lies in the details. Within this interval, 8.4 m of 1,776 g/t silver (Ag) and strong copper (Cu) grades of 2.21% were found, accompanied by antimony (Sb). The team led by CEO Bart Jaworski has not only expanded a high-grade Zn-Pb zone but also provided evidence of a more complex system with a Cu-Ag component, which may be crucial for further interpretation of the discovery.
The discovery is of interest to investors against the backdrop of the commodity markets: in addition to zinc and lead, silver and copper in particular can significantly change the project’s economics if such grades and thicknesses are confirmed over longer distances. Group Eleven also refers to a deeper Cu-Ag target that is currently being further drilled, with corresponding analyses still pending in some cases, according to the company. Geologically, this makes a scenario more likely in which different metal zones occur within a larger hydrothermal system – and the mineralization discovered so far may represent only part of the overall potential.
The fact that Glencore is a strategically important shareholder (14.1% according to the company) and holds a large, not yet in production Zn-Pb resource in the same region with Pallas Green, lends additional credibility to the story. It is important to note the correct spatial location: according to Group Eleven, Ballywire is located about 20 km from Stonepark, which in turn is adjacent to Glencore’s Pallas Green project. According to the company, four drill rigs are currently in operation to further test the extent of the discovery along a 6 km trend with four gravimetric anomalies. So far, only one anomaly has been systematically drilled. The share is currently trading at CAD 0.73.
Hecla Mining – On its way to becoming a pure silver player
Hecla Mining delivered in the fourth quarter of 2025. With a 83% jump in revenue to USD 448 million and earnings per share of USD 0.20, the group significantly exceeded expectations. However, more decisive than the figures is the strategic move to sell the Casa Berardi gold mine to Orezone Gold for up to USD 593 million. This paves the way for a clear realignment. In the future, North America’s largest silver producer will focus entirely on its core business. This step sharpens the operational base and further relieves the balance sheet.
The operational strength is evident in the mines. Lucky Friday in Idaho delivered record production of 5.3 million ounces, while Greens Creek in Alaska is even operating at negative cash costs thanks to high ancillary revenues. At the same time, Hecla has reduced its net debt to just USD 34 million and increased free cash flow to USD 310 million. The proceeds from the gold sale are now being invested in the expansion of the silver mines, with a particular focus on Keno Hill in the Yukon and Greens Creek. Management is also doubling the exploration budget to USD 55 million to secure the reserve base over the long term.
The silver boom, with prices above the USD 100 mark, has given Hecla a boost. Analysts remain divided, however. While firms such as H.C. Wainwright are issuing a clear “Buy” recommendation with a price target of USD 36.50, other institutions are neutral to cautious. This caution is understandable. Despite the record figures, Hecla faces the challenge of translating the historic price rally into lasting value creation. With the current share price at USD 24.02 and mixed analyst opinions, caution is just as appropriate as confidence in the new strategic clarity. However, the industrial shortage of silver argues in favor of this focus in the long term.
Commodity markets are experiencing a historic shortage, from which cleverly positioned companies in particular are benefiting. BYD is securing a decisive competitive advantage over its rivals through strategic copper partnerships and a massive silver reserve. Group Eleven Resources is advancing from a pure zinc explorer to a promising multi-metal project with its high-grade Ballywire discovery. Following the sale of its gold mine, Hecla Mining is now consistently focusing on silver and shining with record production and a deleveraged balance sheet. Those who now focus on the drivers of electrification can benefit above average from structural supply bottlenecks in the long term.
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