Recent Interviews

Ryan Jackson, CEO, Newlox Gold Ventures Corp.

Ryan Jackson
CEO | Newlox Gold Ventures Corp.
60 Laurie Crescent, V7S 1B7 West Vancouver (CAN)

+1 778 738 0546

Newlox CEO Ryan Jackson on building a green gold producer with a rapid growth trajectory

Nick Mather, CEO, SolGold PLC

Nick Mather
CEO | SolGold PLC
1 King Street, EC2V 8AU London (GB)

+44 20 3823 2125

SolGold CEO Nick Mather on building a major gold and copper mining company

Jared Scharf, CEO, Desert Gold Ventures Inc.

Jared Scharf
CEO | Desert Gold Ventures Inc.
4770 72nd St,, V4K 3N3 Delta (CAN)

Desert Gold Ventures CEO Jared Scharf on West Africa and its potential

06. October 2020 | 09:13 CET

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

  • Rare Earth Elements

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



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."


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:

02. October 2020 | 11:14 CET | by Mario Hose

Airbus, Boeing, Defense Metals: US government sets course

  • Rare Earth Elements

Acting US President Donald Trump has been a polarizing figure since the beginning of his political career. While he tries to speak from the heart to one part of the population, he drives his opponents crazy with rhetorical games. Although Trump ends wars started by his predecessors and avoids new military conflicts, the global reputation of the US government is currently at rock bottom. Meanwhile, Trump is gaining new fans on social media on the Canadian side. Acting Canadian Prime Minister, Justin Trudeau, has to put up with the accusation that Trump is doing more for the country's economic success. The reason for this statement is the construction of a USD 22 billion railway line from the Canadian province of Alberta to the US state of Alaska. But there is another sector that benefits from Trump.


20. December 2019 | 11:11 CET | by Mario Hose

Lynas Corporation, Mkango, Ucore Rare Metals - who will benefit most from the U.S. Army?

  • Rare Earth Elements

The market for rare earth elements is dominated by the People's Republic of China. Worldwide production of rare earths in 2018 was around 170,000 tonnes, of which 120,000 tonnes came from China. This shows how much the global industries have become dependent on a good relationship with China. In 2010, following a diplomatic dispute with Japan, the People's Republic restricted exports, which caused prices for niche metals to skyrocket.