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Alex Kent, Managing Director, Aspermont Limited

Alex Kent
Managing Director | Aspermont Limited
613 - 619 Wellington Street, WA, 6000 Perth (AUS)

Corporate@aspermont.com

+61 8 6263 9100

Aspermont shows the success of digitalization - Alex Kent has an agenda


Jim Payne, CEO, dynaCERT Inc.

Jim Payne
CEO | dynaCERT Inc.
101-501 Alliance Avenue, M6N 2J1 Toronto, Ontario (CAN)

jpayne@dynacert.com

+1 416 766 9691

dynaCERT CEO Jim Payne on attractive hydrogen opportunities


Sebastian-Justus Schmidt, CEO and Founder, Enapter AG

Sebastian-Justus Schmidt
CEO and Founder | Enapter AG
Ziegelhäuser Landstraße 1, 69120 Heidelberg (D)

info@enapterag.de

Enapter AG CEO and founder Sebastian-Justus Schmidt on the future of hydrogen


06. October 2020 | 09:13 CET

VW, Rock Tech Lithium, Defense Metals, Tesla - scarcity causes price explosion!

  • Rare Earth Elements
Photo credits: pixabay.com

The growth market of electric mobility will continue to pick up speed in the coming years. According to a study, the forecast number of new registrations of electric cars and plug-in hybrids will be 10.3 million cars in 2020, triple by 2025, and rise to almost 55 million units by 2030. The winners of this trend are primarily car manufacturers such as Tesla, VW, and BMW. There are highly exciting companies in the ranks of suppliers and producers that are profiting exponentially from the boom trends - both in terms of corporate profits and share price performance.

time to read: 2 minutes by Stefan Feulner


 

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


Demand for lithium batteries unchecked

Last week, Tesla boss Elon Musk announced on the occasion of "Battery Day 2020" that he will need twice as much lithium for production in the coming years as before. Tesla is aiming to invest directly in North American lithium projects. It is known, at least since Corona, that supply chains to China can be broken off. Companies such as Rock Tech Lithium Inc. which, among other things, operate a project in Canada, should profit strongly from the increased demand for lithium in the coming years. A complete takeover by a big player like Tesla would also be logical.

Endless material requirements - Rare Earths are becoming scarce

The situation is at least as dramatic when it comes to the scarcity of rare earths. Permanent magnets for electric motors are manufactured based on rare earth metals. 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 in ten years. Above all, the analysts of Adamas Intelligence see strong growth in demand for magnetic rare earth elements such as neodymium, praseodymium, dysprosium and terbium.

Long-term threat of collapse

The short-term view of a period of only three to five years is seen as critical. The reason for this is that the demand for rare earth is growing so strongly that the already insufficient production capacities are likely to collapse. According to Adamas Intelligence, the mining industry needs huge investments to increase supply.

Dependence on China enormous

The dependence on China for rare earth elements is even stronger than for lithium. Although the world market share of China's production has shrunk in recent years from almost 94% to currently 80%, it is still so large that the "Middle Kingdom" does not only have control over pricing. Due to the still blazing trade conflict with the USA, China had already threatened to stop exporting rare earths in 2019. It would not only harm the United States, but also unsettle the entire global economy. As a result, the pressure for investments in North America and Europe to reduce China's share, is growing.

Well positioned in Canada

The mineral exploration company Defense Metals, founded in 2016, has achieved tangible success in this area. 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.

Study shows significant progress

In late September, 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."


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:

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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07. January 2021 | 09:50 CET | by Stefan Feulner

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

  • Rare Earth Elements

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.

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