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Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


John Jeffrey, CEO, Saturn Oil + Gas Inc.

John Jeffrey
CEO | Saturn Oil + Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary (CAN)

info@saturnoil.com

+1-587-392-7900

Saturn Oil + Gas CEO John Jeffrey: "Acquisition has increased production by 2,000%"


07. January 2021 | 09:50 CET

JinkoSolar, Defense Metals, BYD - demand boom leads to catastrophe!

  • Rare Earth Elements
Photo credits: pixabay.com

The sales figures for all major electric car manufacturers for the full year 2020 are on the table. 100% more e-cars were sold compared to the same period last year. But even more significant for the future is that vehicles with electric motors have overtaken pure combustion engines in new deliveries. The disruptive replacement is in full swing. However, shortages are emerging in the raw materials needed for the production of batteries and motors.

time to read: 2 minutes by Stefan Feulner
ISIN: CA2446331035 , US47759T1007 , CNE100000296


 

Author

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

About the author


Shortage of raw materials

In addition to lithium, which is needed for the production of batteries, there is also an enormous surplus of demand for other raw materials. This demand will become much more acute in the coming years. Permanent magnets for electric motors are produced based on rare earth metals. In ten years, the experts at Adamas Intelligence predict that demand for rare earth oxides for use in magnets will rise from USD 2.98 billion to USD 15.65 billion. The analysts at Adamas Intelligence see by far the most significant demand primarily for rare earth magnets such as neodymium, praseodymium, dysprosium and terbium. Even more severe is the short-term view of three to five years. The demand for rare earths is growing so enormously that the already insufficient production capacities will not be enough by far. It is a must to make significant investments in the mining industry to saturate demand to some extent.

China's superiority

The People's Republic of China has a virtual monopoly with 80% of rare earth metals production. Politicians are desperately looking for alternatives in Europe or North America. Defense Metals, a mineral explorer, is at the top of the list. Founded in 2016, the Company focuses on acquiring mineral deposits that contain metals and elements used in the production of renewable energy technologies, such as rare earth magnets. Research is underway at the Wicheeda project in the province of British Columbia. The Company says mineral resources are 4.9 million tons at an average grade of 3.02% LREO (light rare earth metals) and inferred mineral resources of 12.1 million tons at an average grade of 2.90% LREO.

Cash boost and the share price jumps

At the end of December, the Company announced that it would receive approximately CAD 632,000 from the exercise of 3.157 million warrants. These funds will be used to strengthen working capital and, in particular, to complete the preliminary economic assessment (PEA) of the project. The stock market is slowly recognizing the extreme demand for rare earth metals. Defense Metals shares have almost doubled to CAD 0.30 in the past four weeks and are close to their 2018 all-time high, but the stock market value is currently just under EUR 10 million. Given the further increase in demand due to the electric car boom, there is still significant room for improvement.

"Build your dreams" continues

The importance of the procurement of lithium and rare earth metals is shown by the delivery figures for BYD for December. The Chinese Company sold a total of 56,322 vehicles in the last month of fiscal year 2020. In the previous month, the figure was 53,943 units. Compared to December 2019, this represents a significant increase of over 13,000 units. Crucially, however, the report showed that for the first time in the Company's history, more NEVs were sold than internal combustion vehicles.

Less growth than competitors

Indeed, BYD is still well ahead of competitors such as NIO or Xpeng in terms of delivery figures. However, sales of electric cars were lower in percentage terms than those of its main Chinese competitors compared to the previous month. Although the share started the day almost 3% down, it managed to get back into the black over the course of the day.

New record

The Chinese photovoltaic producer JinkoSolar was able to break its world record. An efficiency of 24.9% was achieved for a large, n-type, TOPCon, monocrystalline solar cell. According to the Company, the monocrystalline solar cell was manufactured on a high-quality, low-defect CZ mono-Si substrate. Earlier this year, when the cell still had an efficiency of 24.2%, JinkoSolar said the cell was based on the HOT design and featured tunnel oxide passivated contact technology.


Author

Stefan Feulner

The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

19. February 2021 | 10:25 CET | by André Will-Laudien

Defense Metals, BYD, NEL, Plug Power - Rare earths, who is the fastest?

  • Rare Earth Elements

Scarcity is the issue in 2021! Western governments have completely miscalculated regarding technological progress. They are now being driven by the industry; decisions that should have been made 5 years ago are now being followed abruptly. Since Battery Day in mid-September 2020, it has been clear that a technology giant like Tesla, led by Elon Musk, will enter large-scale battery mass production. What is missing is the complete closing of ranks between battery and car manufacturers so that the produced and expensively developed high-performance batteries are also installed in e-cars through corresponding demand. In coordination rounds between the automotive industry and the EU, the decision has probably already been made: E-mobility will come, and it will come in the big version...!

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26. January 2021 | 08:05 CET | by Carsten Mainitz

Lynas Rare Earths, Defense Metals, Arafura Resources - Rare Earths: still in time to get in before the boom!

  • Rare Earth Elements

China has dominated the rare earths market for a long time. A supply shortage in the People's Republic and a substantial increase in demand can lead to a massive price increase of the commodity group at any time. These price increases are then often reflected in the share price of relevant players. Rare earth metals are in demand in a wide range of industries and to close the emerging supply gap the production of rare earth metals must be increased outside of China. We present three opportunity stocks that will benefit from industry trends and scarcity prices as producers or prospective producers.

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18. January 2021 | 09:48 CET | by Nico Popp

BYD, Defense Metals, Nornickel: Still investing in electromobility?

  • Rare Earth Elements

Electromobility is a trend that is making waves on the stock market: Car manufacturers such as Tesla or BYD are benefiting from the rising demand and the vision of the future, but so are commodity companies. The reason: If you want to drive electric cars with low emissions, you need more raw materials for energy storage and motors than for classic combustion engines. Typical candidates are copper, cobalt, or lithium. Rare earth metals play a unique role. So far, most of them have come from China - and some are mined under dubious conditions. But anyone serious about sustainability must look at the entire value chain when it comes to electromobility and pay attention to raw materials from producers with a good ESG profile. For raw material companies outside China, this is an opportunity.

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