October 28th, 2020 | 09:38 CET
BYD, Defense Metals, VW - the next boom after hydrogen!
Table of contents:
Demand not to cover
The situation is dramatic with the scarcity of "rare earth". Permanent magnets for electric motors are produced based on rare earth metals. In ten years, the experts at Adamas Intelligence predict that the demand for rare earth oxides for use in magnets will increase from the current USD 2.98 billion to USD 15.65 billion. The analysts of Adamas Intelligence see by far the most significant demand for magnetic rare earth such as neodymium, praseodymium, dysprosium, and terbium.
Almost 80% of rare earth metals are produced in China. The trade conflict between the USA and China is still ongoing and is not likely to calm down after the possible re-election of Donald Trump. As early as 2019, the Middle Kingdom threatened to stop exporting rare earth metals to the USA. Alternatives ex-China are therefore needed here as quickly as possible.
Current production capacities too low
The short-term view of a period of three to five years is incredibly critical. The reason being, the demand for rare earth is exploding to such an extent that production capacities, which are already insufficient today, are likely to collapse. Enormous investments in the mining industry are needed here to increase supply.
The Canadian mineral exploration Company Defense Metals can already point to tangible successes in this area. Founded in 2016, the Company focuses on the acquisition of mineral deposits containing metals and elements used in the production of renewable energy technologies, such as rare earth magnets.
The main focus is on the Wicheeda project in the province of British Columbia. According to the Company, the mineral resources are 4.9 million tonnes at an average grade of 3.02% LREO (light rare earth metals), and inferred mineral resources are 12.1 million tonnes at an average grade of 2.90% LREO.
About four weeks ago, the Company received the final report of the study, which was prepared by SGS, the world's leading inspection, verification, testing, and certification Company. Craig Taylor, CEO of Defense Metals commented: "The success of the flotation pilot and 1,200 kilograms of high-grade REE concentrate produced places Defense Metals and the Wicheeda REE deposit among rare company and opens the door to future hydrometallurgical pilot trials at SGS, with the ultimate goal of producing a Nd-Pr oxide product stream."
Defense Metals is at the beginning of a success story. At the moment the market capitalization is a mere EUR 6.00 million. An entry into the stock would be a bet on the future. However, if you see the exponentially growing demand for electric vehicles, you can't ignore the producers of the raw materials.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.
Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.