The Netherlands is stepping up efforts to secure access to rare raw materials as part of its strategy to bolster industrial competitiveness amid rising global demand and geopolitical tensions. With millions earmarked for new initiatives, the government-backed investment fund, Invest International, has launched programs aimed at enhancing imports of key resources required for high-tech production.
Minister Liesje Schreinemacher, responsible for Foreign Trade and Development Cooperation, is currently attending a major raw materials and minerals conference in Toronto. This conference presents opportunities to deepen partnerships with key suppliers from Australia, Canada, and Chile. The urgency of this initiative is underscored by the soaring demand for materials such as lithium, cobalt, nickel, and copper—essential components for electric vehicle batteries, wind turbine magnets, and green hydrogen production.
According to Lara Muller, director of new ventures at Invest International, partnering with research institutions like TNO is pivotal. She emphasized, "We must work alongside like-minded nations to guarantee access to the raw materials and bolster industrial competitiveness. With its strong logistics network and the Port of Rotterdam as a key European gateway, the Netherlands plays a significant role in the supply chain.”
Efforts to secure alternative sources of raw materials are particularly pressing due to rising global prices and Europe’s geopolitical tensions, particularly following sanctions on Russia due to its invasion of Ukraine. The Dutch government aims to reduce its dependency on less stable suppliers and continue to provide for its high-tech sectors.
On another note, private equity activities within the Netherlands have surged as of the fourth quarter of 2024. This increase is largely attributed to the European Central Bank’s (ECB) monetary easing policy, which has enabled sponsors to effectively leverage their deals. Notably, the upturn is more pronounced among buyout deals as opposed to growth investments and add-ons.
The private equity market is showing signs of life again as sponsors navigate the newly favorable financial climate. Amsterdam's Euronext exchange has emerged as another attractive venue for listings, benefiting from its favorable regulatory environment and superior liquidity compared to the London Stock Exchange.
While private equity is finding its footing, venture capital deals have remained subdued, with their values hovering at some of the lowest levels seen since the onset of the pandemic. This highlights the contrasting fortunes between growth sectors and traditional investment schemes.
On the stock front, Dutch stocks were on the rise after the close of the market on Monday, with gains reported across various sectors. Specifically, the AEX index increased by 0.92%, driven higher by performances from major corporations. ArcelorMittal SA saw significant success, rising 4.96% to close at 28.80, marking new highs for the year.
Other key players contributing to the market growth included ING Groep NV, which added 3.49% to close at 17.74, and Wolters Kluwer, which rose by 1.83% to end the day at 150.30. Notably, shares of ING Groep NV reached five-year highs during this trading session, indicative of the company's strong performance.
Despite the general upward trend, some companies faced declines, with Akzo Nobel NV dropping 1.38% and DSM Firmenich AG falling by 0.92%. Overall, rising stocks outnumbered those on the decline by 57 to 36, with 17 remaining unchanged.
The volatility of the AEX, which measures the implied volatility of AEX options, remained steady at 21.09, reflecting stable market conditions. Meanwhile, crude oil prices also fluctuated; the price for April delivery fell 0.43% to $69.46 per barrel, and Brent oil for May delivery decreased by 0.21% to $72.66 per barrel.
Market analysts remain cautiously optimistic, observing how monetary policies and international relations continue to shape the Netherlands' economic prospects. The strategic focus on securing rare materials and the increased activity within private equity not only position the Netherlands favorably within the global market but also bolster confidence among investors.