In this InvestorNews interview with host Tracy Weslosky, Russell Fryer, CEO and Executive Director of Critical Metals PLC (LSE: CRTM), shared insights into the strategic developments at their past-producing Molulu Copper/Cobalt Project in the Democratic Republic of Congo (DRC). Russell outlined plans for essential infrastructure improvements, particularly the rehabilitation of a 28km road crucial for local logistics, which will facilitate the resumption of copper ore sales from Molulu. He also highlighted the positive outlook for the copper market, mentioning, “Copper prices have actually changed a lot… We saw the Bank of America come out and say they expect a 30% rise in the copper price within the next 12 months.”

Russell also provided an update on the drill program aimed at enriching the company’s mining block model and developing a JORC-compliant report, which are key steps toward escalating the Molulu project towards production. Additionally, Russell discussed the company’s strategic move to expand Critical Metals’ investor base with an upcoming listing on the US OTCQB market.

The interview also delved into the potential financial backing from the US Government, with Russell discussing the recent receipt of a term sheet for an $11 million loan, supported by loan guarantees. This financial support highlights the confidence in the viability of Critical Metals’ operations in the region to bring critical minerals to the global market.

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About Critical Metals PLC

London listed Critical Metals plc is focused on identifying low CAPEX and OPEX brown-field projects with near-term production and cash-flow, concentrating on minerals that have strategic importance to future global economic growth.  In line with this, and with an off-take partner already in place, the Company is currently focused on recommencing production at the formerly producing Molulu Copper/Cobalt Project in the Katangan Copperbelt in Democratic Republic of Congo (‘DRC’).

To learn more about Critical Metals PLC, click here

Disclaimer: Critical Metals PLC is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc., does not contain, nor does it purport to contain, a summary of all material information concerning FendX Technologies Inc. (the “Company”), including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on www.sedarplus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

Welcome to the latest issue of the Technology Metals Report (TMR), brought to you by the Critical Minerals Institute (CMI). In this edition, we compile the most impactful stories shared by our CMI Directors over the past week, reflecting the dynamic and evolving nature of the critical minerals and technology metals industry. Among the key stories featured in this report are Ford Motor’s strategic decision to delay its all-electric SUV and truck productions in favor of expanding its hybrid offerings, signaling a broader trend in the automotive sector towards hybrid technologies. The resurgence of the uranium market, with prices doubling due to the growing demand for clean energy, underlines the critical role of uranium in achieving 2050 climate targets. Moreover, the DRC’s decision to suspend nine subcontractors at ERG mines due to non-compliance issues highlights the persistent challenges and evolving regulatory landscape in the cobalt industry. This action reflects a commendable direction by the Congo government towards enhancing industry standards and governance. The entry of Aclara Resources Inc. into the U.S. rare earth processing market was both newsworthy and offered Jack Lifton an opportunity to update readers on the advancements of REE processes in North America today.

This week’s TMR Report also highlights significant developments across the global critical minerals landscape, including the European Union and the United States’ efforts to broaden their reach in securing critical minerals amidst a stalled bilateral agreement, and Ionic Rare Earths Limited’s joint venture with Viridis Mining to establish a rare earth refining and recycling presence in Brazil. The U.S. Department of Energy’s $75 million investment in a Critical Minerals Supply Chain Research Facility aims to reduce reliance on foreign sources and bolster national security. Furthermore, the collaboration between NOVONIX Limited and Lithium Energy Limited to form Axon Graphite Limited through a public listing emphasizes the strategic moves within the natural graphite sector. MP Materials’ awarded tax credit to advance U.S. rare earth magnet manufacturing marks a significant step towards reducing dependency on imported critical materials. Lastly, the extension of Canada’s Mineral Exploration Tax Credit (METC) and the Biden-Harris Administration’s announcement of a $4 billion initiative in tax credits for clean energy supply chain projects underline the ongoing efforts and investments to strengthen the critical minerals sector, underscoring the importance of these developments for our energy security, economic prosperity, and environmental sustainability.

To become a CMI member and stay informed on these and other topics, click here

Ford to delay all-electric SUV, truck to focus on offering hybrid vehicles across its lineup by 2030: (April 04, 2024, Source) — Ford Motor has announced a strategic shift in its electric vehicle (EV) plans, postponing the production of a new all-electric SUV and pickup truck to focus on expanding its hybrid vehicle offerings across its entire North American lineup by 2030. Despite this delay, Ford remains committed to the EV market, planning to continue its investments in electric technology. The production of a three-row SUV in Canada has been rescheduled from 2025 to 2027, and the launch of a next-generation pickup, codenamed “T3,” has been moved from late 2025 to 2026. This decision reflects broader industry trends, with many automakers reassessing their EV strategies amid slower-than-expected adoption rates and high production costs. Additionally, Ford aims to leverage new battery technology to enhance the durability and value of its future EVs, focusing its efforts on newly established plants like the “BlueOval City” in Tennessee, rather than converting existing facilities.

Uranium price creates new ASX boom: (April 04, 2024, Source) — In 2023, uranium prices doubled from US$48 to US$91 per pound, peaking at US$106 in 2024, highlighting a significant recovery from previous lows. This resurgence, fueled by the demand for clean energy and carbon emission reductions, has revived interest in uranium projects, now seen as viable at around US$100 per pound. Global initiatives to expand nuclear energy, with significant investments in new reactors in the US, China, and France, underscore uranium’s critical role in meeting 2050 climate targets. Despite temporary price dips, the market outlook remains positive, driven by global nuclear expansion and supply constraints. This bullish sentiment has revitalized the uranium sector, particularly benefiting ASX-listed companies engaged in uranium exploration and mining, reflecting a broader industry optimism and investment in nuclear energy’s future.

Congo Suspends ERG Subcontractors at Major Cobalt Mine: (April 04, 2024, Source) — The Democratic Republic of Congo has suspended nine subcontractors at Eurasian Resources Group (ERG) mines, citing non-compliance with laws requiring Congolese ownership. This move, announced on March 14, intensifies tensions between ERG and the government, which is pushing for greater domestic benefits from the mining sector. Congo, a major global supplier of cobalt and a significant copper producer, is enforcing regulations to ensure local control of mining operations. The government’s actions also reflect ongoing disputes with ERG over asset development and environmental concerns. Despite the suspensions, ERG insists it adheres to local laws, emphasizing its support for Congolese suppliers and its commitment to legal compliance. The sanctions target subcontractors at Metalkol and Frontier, two key ERG projects in Congo, but are not expected to affect output due to a transitional period for bringing in compliant firms. The controversy highlights Congo’s efforts to secure more benefits from its mineral resources while navigating challenges with international mining companies.

Disruptive Shift to Rare Earth Processing as Aclara Moves into American Market: (April 03, 2024, Source) — Jack Lifton of the Critical Minerals Institute (CMI) offered an analysis on Aclara Resources Inc.‘s (TSX: ARA) strategic entry into the U.S. rare earth processing market. Aclara aims to utilize ionic clay deposits from Chile and Brazil for heavy rare earth elements (HREEs) crucial in magnet manufacturing. They’ve partnered with the Saskatchewan Research Council and Hatch Ltd. for processing facility development. Lifton, however, questioned the project’s ambitious timeline and compared Aclara’s efforts to established players like Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR), which is advancing in light rare earth (LREE) separation. The column highlights the competitive nature of the rare earth market, with Aclara facing challenges from Energy Fuels, MP Materials (NYSE: MP) and Ucore Rare Metals Inc. (TSXV: UCU | OTCQX: UURAF). Lifton suggests Aclara needs deeper industry integration and strategic partnerships, indicating a complex journey ahead in a competitive and technological landscape.

EU, US seek broader reach on critical minerals as own deal stalls: (April 03, 2024, Source) — The European Union (EU) and the United States (US) are not expected to finalize a critical minerals agreement at an upcoming meeting. Despite this, they plan to launch initiatives to partner with resource-rich countries. The EU aims for an accord allowing minerals processed in Europe to be eligible for US clean vehicle incentives, focusing on cobalt, graphite, lithium, manganese, and nickel. A senior European Commission official cited the absence of an imminent deal but confirmed a joint commitment to future agreements. Difficulties include US demands for labor standards verification at mining sites. Moreover, the EU and US are seeking to differentiate their offerings from China’s by emphasizing infrastructure funding, sustainability, and value-added business opportunities for developing countries, with plans to engage with ministers from Namibia, Ukraine, Kazakhstan, and Uzbekistan among others.

Ionic Rare Earths Limited (ASX:IXR) and Viridis Mining to Form REE Refining and Recycling JV in Brazil: (April 03, 2024, Source) — Ionic Rare Earths Limited (ASX:IXR) and Viridis Mining and Minerals Limited (ASX:VMM) have announced a 50:50 joint venture (JV) to establish a dominant position in the global supply chain for Rare Earth Elements (REE) in Brazil. This strategic partnership aims to utilize IonicRE’s intellectual property and Viridis’ global assets to become a leading supplier of high-quality, reliable rare earths crucial for various industries and energy transition. The JV plans to co-fund a Brazilian production facility, aiming to complete a Scoping Study by the end of 2024 and a preliminary feasibility study within 18 months. IonicRE’s recent success in producing rare earth oxides at its Belfast facility and Viridis’ promising Colossus Ionic Adsorption Clay REE Project in Brazil highlight the joint venture’s potential to accelerate growth and leverage Brazil’s rich rare earth resources. This collaboration aligns with Brazil’s ambition to become a global leader in rare earth production, offering an exceptional opportunity for both companies to advance their positions in the rare earth supply chain significantly.

DOE Invests $75 Million to Strengthen Nation’s Critical Minerals Supply Chain: (April 02, 2024, Source) — The U.S. Department of Energy (DOE), under President Biden’s Investing in America agenda, announced a $75 million investment for a Critical Minerals Supply Chain Research Facility, aimed at bolstering the nation’s supply chains for critical minerals and materials essential for energy security, economic prosperity, and national security. This initiative, part of the Bipartisan Infrastructure Law, focuses on reducing reliance on foreign sources by accelerating the production of critical minerals from diverse sources. The facility will collaborate with other government initiatives and aims to enhance supply chain efficiencies and support a circular economy. A supply chain assessment highlighted the risks of over-reliance on foreign and adversarial sources for these materials, underscoring the importance of this project for the U.S.’s clean energy transition, manufacturing sector revitalization, and overall competitive edge. The project will involve nine national laboratories, emphasizing community engagement and benefits in line with the Justice40 Initiative. This is in addition to FECM’s commitment of $58 million since January 2021 to further support critical mineral and material projects across the country.

NOVONIX Limited and Lithium Energy Limited to Combine Natural Graphite Interests with Intention to Take Combined Business Public: (April 02, 2024, Source) — NOVONIX Limited (NASDAQ: NVX | ASX: NVX) and Lithium Energy Limited (ASX: LEL) are combining their natural graphite exploration interests into a newly formed company, Axon Graphite Limited, aiming for a public listing through an initial public offering (IPO) on the Australian Securities Exchange (ASX). Both companies will each retain up to 28.57% ownership post-IPO, intending to create a significant natural flake graphite project. This move is designed to unlock value for shareholders of both NOVONIX and LEL, with eligible shareholders given priority in the IPO. The combination of NOVONIX’s Mt. Dromedary project and LEL’s Burke and Corella projects under Axon signifies the development of a major resource aimed at supporting the electric vehicle and energy storage sectors. The IPO seeks to raise between $15 million to $25 million, setting the stage for Axon to become a key player in the battery materials sector, benefiting from the anticipated growth in demand for anode materials and high-grade graphite products.

MP Materials Awarded $58.5 Million to Advance U.S. Rare Earth Magnet Manufacturing: (April 01, 2024, Source) — MP Materials (NYSE: MP) has been awarded a $58.5 million tax credit by the IRS and Treasury, under the Section 48C Advanced Energy Project, to support the construction of the first fully-integrated rare earth magnet manufacturing facility in the United States. This grant was part of a competitive process by the Department of Energy assessing around 250 projects for their viability and environmental impact. The facility will focus on producing neodymium-iron-boron (NdFeB) magnets, essential for various applications including electric vehicles, wind turbines, and defense systems. With global demand for these magnets expected to triple by 2035, MP Materials’ initiative aims to commence the commercial production of magnet precursor materials in Fort Worth, Texas, by summer and finished magnets by late 2025, supplying to companies like General Motors. This project addresses the U.S.’s near-total reliance on imports for these critical materials, mainly from China, and aims to establish a sustainable, end-to-end supply chain.

Relief and Renewal: Canada’s METC Extension Breathes New Life into Mineral Exploration: (March 31, 2024, Source) — The Canadian government announced the extension of the Mineral Exploration Tax Credit (METC) until March 31, 2025, addressing concerns in the mining sector over the future of flow-through financings. This move has been met with relief, particularly as the deadline approached without prior confirmation, sparking anxiety among stakeholders. The METC plays a vital role in supporting exploration companies by enhancing flow-through share pricing, thereby facilitating fundraising. Critics, including Peter Clausi from the Critical Minerals Institute (CMI), had voiced concerns over the uncertainty caused by the government’s silence, which hampered planning and investments. The extension is seen as crucial for continued investment in the sector, particularly benefiting junior mining companies and associated industries, including First Nations communities. Despite debates over the sufficiency of the projected $65 million support, the decision signifies the government’s recognition of mining’s importance to Canada’s economy and its commitment to sustainable development and Indigenous economic participation.

Central Asia’s rising role in global rare earth metal competition: (March 31, 2024, Source) — Central Asian countries are becoming increasingly significant in the global competition for rare earth metals, crucial for technological and economic development. Eldaniz Gusseinov and Abakhon Sultonazarov highlight this trend against the backdrop of geopolitical shifts, such as the Ukraine conflict, prompting Western countries to seek alternatives to Russian and Chinese supplies. Central Asia, rich in mineral reserves, is eyed by the West to reduce dependencies, particularly as they move towards renewable energy sources. Kazakhstan emerges as a focal point with substantial reserves of rare earth elements like scandium, yttrium, and lanthanides, pivotal for industries ranging from computing to automobile manufacturing. The U.S. and EU are exploring investments in Kazakhstan to diversify their supply chains. Meanwhile, the U.S. and China vie for influence in the region, leveraging their strategic advantages. Central Asia’s untapped mineral wealth, including significant rare earth deposits, positions it as a critical player in global supply chains, with the potential to alter the dynamics of resource control and economic development amidst great power competition.

Biden-Harris Administration Announces $4 Billion in Tax Credits to Build Clean Energy Supply Chain, Drive Investments, and Lower Costs in Energy Communities: (March 29, 2024, Source) — The Biden-Harris Administration has announced a groundbreaking $4 billion initiative in tax credits to foster over 100 projects across 35 states aimed at bolstering clean energy manufacturing, reducing greenhouse gas emissions, and securing the supply chain for critical minerals. This move, part of President Biden’s Investing in America agenda and funded by the Inflation Reduction Act, represents a major leap forward in the domestic production of clean energy and the strategic development of critical minerals essential for energy independence and technological advancement. Managed by the Department of Energy (DOE) in partnership with the Treasury and the IRS, the initiative focuses on a diverse range of projects, including significant investment in communities historically dependent on fossil fuels, aiming to create high-quality jobs and promote a transition to a cleaner economy. The Qualifying Advanced Energy Project Tax Credit (48C) program, rejuvenated with a $10 billion boost from the Inflation Reduction Act, provides up to a 30% investment tax credit for approved projects that meet specific wage and apprenticeship standards. With a particular emphasis on critical minerals recycling, processing, and refining, this program is a key component of the Administration’s strategy to ensure a sustainable, secure, and competitive energy future.

Investor.News Critical Minerals Media Coverage:

• April 03, 2024 – Ecclestone Takes Critical Mineral Hit Lists to Task in the Hallgarten + Co Resource Monthly “Debasing Criticality’s Currency” https://bit.ly/3IZLkwV
• April 03, 2024 – Disruptive Shift to Rare Earth Processing as Aclara Moves into American Market https://bit.ly/43J4C2V
• March 31, 2024 – Relief and Renewal: Canada’s METC Extension Breathes New Life into Mineral Exploration https://bit.ly/4cFr1lI
• March 29, 2024 – Boosting Market Interest Through the Strategic Advantage of a Stellar Advisory Board https://bit.ly/3vlAWwk

Investor.News Critical Minerals Videos:

• April 04, 2024 – Danny Huh on Neo Battery Materials’ Process Innovation, 9th Patent and Position in NBM Korea https://bit.ly/3VL2V2X

Critical Minerals IN8.Pro Member News Releases:

• April 04, 2024 – Power Nickel Announces C$2 Million Private Placement https://bit.ly/49meqkQ
• April 03, 2024 – Voyageur Pharmaceuticals Ltd Grants Deferred Share Units Compensation to Independent Directors https://bit.ly/3U3sDyH
• April 03, 2024 – Zentek Announces U.S. Distribution Agreement for ZenGUARDTM-Enhanced Surgical Masks with Medwell Solutions https://bit.ly/4cKM4U3
• April 03, 2024 – Defense Metals Appoints Guy de Selliers de Moranville to the Board of Directors https://bit.ly/3vzlxsj
• April 03, 2024 – Panther Metals PLC – Fulcrum Metals Announce Potential Disposal of Uranium Projects https://bit.ly/44012BX
• April 02, 2024 – First Phosphate Drills a 2 m Vein of Massive Apatite at Its Begin-Lamarche Project in Saguenay-Lac-St-Jean, Quebec, Canada https://bit.ly/3VIAGCb
• April 02, 2024 – Fathom Continues to Expand the Historic Gochager Lake Deposit to Depth with Intersections of Semi-Massive to Massive Sulphide Mineralization https://bit.ly/3TKmO7I
• April 02, 2024 – CBLT Announces Program at Past Producer Falcon Gold and Revisits Historical High Gold Values https://bit.ly/49jcVnl
• April 02, 2024 – Panther Metals PLC – Obonga Graphite: Awkward East Exploration Permit Application https://bit.ly/4atD3gm

In a comprehensive interview with InvestorNews host Tracy Weslosky, Peter Clausi, President, CEO & Director of CBLT Inc. (TSXV: CBLT), delved into the company’s strategic focus on mergers and acquisitions (M&A) and asset development across the mineral exploration sector. Clausi articulated CBLT’s pre-emptive strategy to bolster its financial position by liquidating assets ahead of anticipated market downturns, ensuring the company remains financially robust with “cash in the bank.” This prudent financial management, according to Clausi, positions CBLT advantageously during both prosperous and challenging times, enabling continued exploration and project development activities.

Clausi emphasized CBLT’s unique approach to growth, stating, “In our belief, you can make more money with the pen than with the drill bit at less risk,” highlighting the company’s success in maximizing value through strategic M&A activities rather than solely relying on direct exploration. This philosophy has allowed CBLT to maintain a lean share structure over 15 years, with only 75 million shares issued, a testament to their efficient capital management and strategic project acquisitions.

The interview further shed light on CBLT’s diverse portfolio, ranging from gold and cobalt to lithium and copper properties across Canada, each selected for its potential to address future market demands. Notably, Clausi spotlighted the acquisition and planned development of the historic Falcon Gold Mine in Sudbury, illustrating CBLT’s knack for identifying and revitalizing underexplored or forgotten assets. This property, alongside others such as Michaela in British Columbia and a lithium property adjacent to the Tanco Mine in Manitoba, underscores CBLT’s strategic foresight in project selection and development.

Adding to the company’s strategic capabilities, CBLT announced the addition of James R. Atkinson, a geologist with over 40 years of experience, to its board of directors, promising to further bolster its expertise in mineral exploration and project evaluation.

Moreover, Clausi provided insights into the company’s recent sale of the non-core Ryliejack asset in northern British Columbia, demonstrating CBLT’s strategic asset management and focus on optimizing its portfolio for financial and operational efficiency. Throughout the interview, Clausi’s narrative was one of strategic foresight, prudent financial management, and a deep understanding of the mineral exploration sector. His perspective on the critical role of copper as a technology metal, over other more transient battery metals, reflected a long-term strategic outlook on commodity investment, emphasizing the importance of adaptability and foresight in the rapidly evolving resource sector. Clausi’s articulate discussion highlighted CBLT’s commitment to strategic growth, value creation, and operational excellence in the exploration industry.

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About CBLT Inc.

CBLT Inc. (TSXV: CBLT) has an impressive portfolio of eight (8) active exploration projects, and one (1) passive investment across Canada. In Manitoba, they fully own the Shatford Lake Project, focusing on Lithium, which was acquired in 2021. In Sudbury, Ontario, they possess both Copper Prince and the former gold producing Falcon Gold Project, acquired in 2016 and 2023 respectively. These two projects are significant as they jointly cover 100% of the Garson Fault, with resources including Cobalt, Copper, and Gold. Ontario is also home to their Big Duck Lake Project, acquired in 2019, which is rich in Copper, Gold, and Zinc. Similarly, in Newfoundland, the Burnt Pond Project, also acquired in 2019, targets Copper and Zinc resources. Their Geneva Lake Project in Sudbury, focusing on Lead and Zinc, has been under their ownership since 2012. Lastly, the Mikayla Project in British Columbia, acquired in 2012, explores Copper, Gold, and Silver, though no exploration activities were reported for it in fiscal 2023. With regards to passive investments, CBLT acquired title to the Chilton Cobalt property in Quebec in 2017, which was later optioned to PowerStone Metals Corp.

To learn more about CBLT Inc., click here

Disclaimer: CBLT Inc. is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc. (“InvestorNews”), does not contain, nor does it purport to contain, a summary of all material information concerning the Company, including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on SedarPlus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.

In a revealing interview at PDAC 2024, InvestorNews host Tracy Weslosky engaged with Russell Fryer, CEO and Executive Director of Critical Metals PLC (LSE: CRTM), shedding light on the company’s strategic operations in the Democratic Republic of Congo (DRC) and its forward-looking goals. Fryer discussed the evolving political climate in the DRC, highlighting the peaceful presidential election in December 2023 as evidence of the country’s commitment to democracy and the rule of law, which is crucial for investors considering Congo-based companies. He underscored the significance of the DRC in the global supply of cobalt, essential for green energy, and the high-grade copper reserves, vital as other regions face diminishing supplies.

Critical Metals PLC is set to resume production and generate profits in 2024, distinguishing itself with a poly-metallic deposit that yields copper and potentially cobalt. The company’s proactive measures, including road rehabilitation and an off-take agreement with OM Metal & Resources, are poised to enable sales in the first half of the year. Fryer also revealed plans for further drilling and the development of a JORC report, enhancing shareholder value.

The company has made strategic acquisitions, including a controlling stake in Madini Occidental Limited, which holds an indirect 70% interest in the Molulu copper/cobalt project. This acquisition aligns with Critical Metals PLC’s strategy to target projects with low entry costs and near-term cash flow potential. The company’s commitment to operational efficiency and infrastructure upgrades, such as road improvements to facilitate ore delivery, alongside its notable collaboration with OM Metals, underscores its strategy for sustainable growth.

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About Critical Metals PLC

Critical Metals PLC has acquired a controlling 100% stake in Madini Occidental Limited, which holds an indirect 70% interest in the Molulu copper/cobalt project, a producing asset in the Katangan Copperbelt in the Democratic Republic of Congo.

The Company will continue to identify future assets that are in line with its stated acquisition objective of low CAPEX and OPEX brown-field projects with near-term production and cash-flow, whilst concentrating on minerals that have strategic importance to future economic growth thereby generating significant value for shareholders.

To learn more about Critical Metals PLC, click here

Disclaimer: Critical Metals PLC is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc., does not contain, nor does it purport to contain, a summary of all material information concerning FendX Technologies Inc. (the “Company”), including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on www.sedarplus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

In a compelling conversation with InvestorNews host Tracy Weslosky, Jose W. Fernandez, the Under Secretary of State for Economic Growth, Energy, and the Environment for the US, shared insights into the country’s strategic initiatives to secure and diversify the critical minerals supply chain, vital for the clean energy transition. Fernandez emphasized the significance of critical minerals like nickel, manganese, cobalt, and lithium, outlining the efforts to expand their supply to meet future demands.

“The ones—critical minerals—that we’ve been focusing on are the ones that are needed for the clean energy transition. And those are four or five minerals. They include nickel, manganese, cobalt, and lithium. We’re working to find ways to expand the supply of that. And we think that there are opportunities in a number of countries that have reached out to us. Now, what we’re trying to do is really not focus so much on the philosophy of things but actually on concrete projects. How do we go to a country in Africa that’s looking for investment and provide them with an alternative? In order for us to do that, we’re going to have to find the right companies. Our banks are going to have to get involved in the financing. These companies and we are going to have to convince these countries that we will do things the right way.”

Fernandez highlighted the challenges faced by the US in the global supply chain, noting the vulnerability and need to address the monopolization of critical mineral resources. Currently, a significant portion of these essential minerals is controlled by China, presenting a strategic vulnerability for the United States and its allies.

“Companies and organizations have recognized a need, a vulnerability, and a challenge. Simply put, the need is for exponentially greater quantities of critical minerals than we use today. To give you a couple of examples, we will need 42 times the amount of lithium and 25 times the amount of manganese than we use today by 2050. The numbers are staggering. The vulnerability lies in the fact that currently, two-thirds or more of these minerals are owned, controlled, mined, or processed by one country, China. This represents a significant vulnerability. The challenge is for our companies to become more involved in this industry, which is essential for us to diversify our supply chain. To do this, we need to promote our values. Our values include respecting the environment, working with communities, and doing everything we can to improve transparency. These are our selling points. Despite the progress not being as fast as we would like, we are making headway.”

The interview underscored the United States’ proactive approach to not just securing but also ethically sourcing critical minerals necessary for the global transition to clean energy.

Welcome to the January 2024 Critical Minerals Institute (CMI) report, designed to keep you up to date on all the latest major news across the critical minerals markets. Here is the CMI List of Critical Minerals or visit the CMI Library.

Global macro view

January 2024 saw a slight rise in U.S. inflation reported from 3.1%pa in November to 3.4%pa in December 2023. This has led market commentators to suggest the proposed 2024 interest rate reductions may be pushed out to H2, 2024, or be smaller in nature.  

The next U.S. Fed rates announcement is due on January 31, 2024, and no changes in rates are expected. Year to date, as of January 21, 2024, the S&P 500 is up 2.04%. U.S. GDP looks set to slow in Q4, 2023 (announcement due 25 January 2024) with forecasts for 2% annualized growth, which would result in a 2023 GDP of ~2.7%. 2024 U.S. GDP is forecast to be ~2.2%. The U.S. consumer remains resilient with U.S. employment very strong.

China continues its property led slowdown with 2023 GDP recently reported at 5.2% annualized. China’s December new home prices fell at the fastest pace in almost 9 years. Despite this the Chinese Central Bank left rates unchanged, defying expectations for a 0.1% cut.

The Russia-Ukraine war continues as does the Hamas-Israel war which last month spread to include the U.S. and UK forces bombing Iran-backed Houthis over their attacks in the Red Sea. The Middle East is a hotbed ready to explode.   

Global plugin electric vehicle (“EV”) update

December 2023 saw the usual seasonal upswing in global plugin electric car sales reaching a record ~1.5 million. China led the way with a stellar result of 1.191 million units, up 46% YoY.

Global plugin electric car sales ended 2023 at 13.6 million units (~16% market share), for a growth rate of 31% YoY (a significant slowdown from the ~60% growth rate in 2022).

• Trend Investing forecast for 2024 is 17 million units (20% market share), for a growth rate of 25% YoY.
• BloombergNEF forecast for 2024 is 16.7 million units (~20% market share), for a growth rate of 21% YoY.

We are still at the very early stage of the EV boom.

In early January, news was released that a record 1.2 million EVs were sold in the U.S. in 2023, according to estimates from Kelley Blue Book. The report noted that U.S. market share reached 7.6% in 2023 and that 55% of EV sales were attributable to Tesla (NASDAQ: TSLA).

The UK announced that their Zero Emission Vehicle (ZEV) mandate to increase electric car sales has become law. Key rules include:

• “ZEV Mandate demands makers up share of electric car sales to 22% in 2024.
• Electric vehicles currently make up around just 18% of all registrations in the UK.
• Mandate thresholds rise annually to an 80% share in 2030 – and 100% by 2035.
• Failure to meet the ZEV mandate sales targets can result in huge fines for auto makers of £15,000 per model below the required threshold.”

EV battery news

The U.S. government continues to tighten the screws towards developing their own EV supply chain independent of Foreign Entities Of Concern (“FEOC”). On January 20 Bloomberg reported: “US to ban Pentagon battery purchases from China’s CATL, BYD”. The ban will commence from October 2027 and include 4 other Chinese battery makers (Envision Energy Ltd., EVE Energy Co., Gotion High Tech Co., and Hithium Energy Storage Technology Co).

Global critical minerals update

There is an enormous amount of doom and gloom surrounding the EV and battery metals sector as we commence 2024. A key theme in recent months has been very depressed prices for many of the critical minerals, especially those related to the EV segment. A combination of the slowing EV growth rate in 2023 from ~60% in 2022 to ~31% in 2023, combined with an excess of battery inventory from 2022 and new EV metals supply has left most EV metal markets in surplus with prices collapsing.

Lithium

China lithium carbonate spot prices were flat the past month, with the price now at CNY 95,500/t (USD 13,275/t). After an ~80% fall from the high, lithium prices appear to have finally stabilized. This is logical given that prices are now at or below the marginal cost of production, especially for the higher cost China lepidolite producers.

Industry participants have been calling for a price bottom in recent months, with China Futures Co. analyst, Zhang Weixin, forecasting lithium prices to bottom out between CNY 80- 90,000/t and average CNY 100,000/t in 2024.

The other key recent trend in the lithium sector has been several announcements from lithium producers either stopping production or reducing their expansion plans. Core Lithium (ASX: CXO) announced on January 5, 2024 it will temporarily suspend mining operations. Then on January 17, 2024, Albemarle Corporation (NYSE: ALB) announced “actions to preserve growth, reduce costs, and optimize cash flow”. This includes deferring plans to build a fourth lithium hydroxide processing train at their Kemerton LiOH facility.

The China lithium carbonate spot price has stabilized near the marginal cost of production

On the topic of when we might see some recovery in lithium prices. On January 19 Fastmarkets put out a report stating: “…We expect orders to start flowing upstream again either towards the end of the first quarter or early in the second quarter.” If this proves correct and EV demand remains solid, then we could expect some lithium price recovery late Q1, early Q2, 2024.

Fastmarkets reports China lithium inventory levels are now back to the pre-boom levels with ~3 months of supply (red line)

Magnet Rare Earths

Neodymium spot prices fell again the past month to CNY 505,500/t. Prices peaked in February 2022 at CNY 1,506,530 and have been trending lower ever since then.

As discussed in a recent InvestorNews article, the consensus of industry experts is for 2024 to be a consolidation year. The article states: “2024 should see a year of consolidation for the rare earths sector as some experts are telling me. Some forecasts are for NdPr supply deficit to begin as early as 2024; however, this will largely depend on China demand, the global economy, EV sales, and new NdPr supply hitting the market.”

One interesting news item that emerged in January was of Rainbow Rare Earths Limited (LSE: RBW) (“Rainbow”) and their Phalaborwa Project in South Africa. The key aspect being that the Project consists of gypsum waste piles that contain large quantities of the magnet rare earths. Rainbow CEO Bennett stated: “We’ve got no mining cost, no crushing, no milling, no flotation. I saw the advantages to lead to a low capital intensity and low operating cost environment project.” Rainbow targets first production for 2026.

Some analysts are forecasting deficits ahead for NdPr rare earths driven by strong EV and wind energy demand

Cobalt, Graphite, Nickel, Manganese and other critical minerals

Cobalt prices (currently at US$12.90/lb) were flat the past month and remain at very depressed levels. The cobalt market is suffering from excess cobalt supply from the DRC which combined with a global slowdown in demand has led to cobalt prices dropping by almost 2/3 since their April 2022 peak. With LFP batteries gaining in popularity (no cobalt required) and a weak global consumer electronics market, there appears to be no short term turnaround for cobalt. Leading cobalt producer Glencore PLC (LSE: GLEN | OTC: GLCNF) has been stockpiling their excess material. At current prices, there is limited incentive for western producers to expand or enter the market.

Cobalt has lost two-thirds of its value since a recent peak in 2022

Flake graphite prices remain very weak with prices near the marginal cost of production and down ~2% over the past month.

A January 2024 Bloomberg report noted that natural flake graphite shipments slumped 91% in December from November 2023. Of course, sales surged prior to the Chinese export license permits being implemented in December 2023. December exports were 3,973 tons compared to the past monthly average of ~17,000t, so still a very significant fall.

Despite the spate of recent bad news, graphite is one of the EV metals with the largest demand profiles ahead this decade. Several groups are forecasting deficits ahead this decade starting from 2024/25 for the various types of graphite including flake, spherical, and synthetic. You can read more on the graphite outlook here.

Nickel prices fell again last month to USD 15,799/t. The 1 year outlook for nickel remains poor due to oversupply concerns from Indonesia. As a result of low nickel prices we saw the collapse of Panoramic Resources (ASX: PAN) in December and then on January 22, 2024, it was reported that BHP Group (ASX: BHP | NYSE: BHP) plans “to put parts of Kambalda nickel concentrator in Australia on care and maintenance” from mid-2024. This was caused by Wyloo Metals, which supplies ore to the plant, announcing a pause in mining operations due to low nickel prices.

Manganese prices were flat the past month and are now at CNY 29.25/MTU.

Uranium prices have been the exception to the rule the past year as they continue to rise, now at US$106/lb.

Uranium 5 year price chart

Conclusion

The biggest trend that looks to be emerging in Q1, 2024 for the EV metals sector is a negative supply response from producers. Producers are cutting CapEx, scaling back expansion, and in some cases reducing or stopping production. Expect to see a lot more of this in H1, 2024.

They say “the cure for low prices is low prices”. Well that’s exactly where we are now in the cycle. The next 3-6 months is likely to see the washout phase, where many miners collapse, reduce production or put their mine into care and maintenance. There is no point running a mine and selling a limited resource and making no profit. I will end with three well known sayings:

• “Bear markets are the author of bull markets”
• “Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.”
• “You have suffered through the pain, now hang around for the gain.”

Given the EV metals markets have been in a bear market for the past 15-18 months the end is near, and we should expect some recovery during H2, 2024, assuming EV sales can grow at a reasonable rate.

Welcome to the latest Technology Metals Report (TMR) where we highlight the Top 10 news stories that members of the Critical Minerals Institute (CMI) have forwarded to us over the last 2-weeks.

Key highlights in this Technology Metals Report include significant developments such as Rainbow Rare Earths Limited’s discovery in South Africa, China’s unveiling of the new heavy rare earth mineral Bayanoboite-Y, and the Australian Nuclear Science and Technology Organisation (ANSTO)’s $13.9 million funding for critical minerals research. The edition also spotlights the “CMI Masterclass: The Middle East’s Escalating Investment Interest in Africa’s Critical Minerals,” focusing on the strategic importance of Middle Eastern investments in Africa’s mineral sector. Moreover, the increasing global interest in Saudi Arabia’s mineral resources, highlighted at a recent mining conference in Riyadh, illustrates the geopolitical and economic shifts in the critical minerals landscape.

The 10 stories selected for this edition of the TMR, with source links to source stories for this fast-paced sector, are listed chronologically for your ease and review. These narratives highlight the dynamic shifts, strategic innovations, and geopolitical complexities shaping the critical minerals landscape, reflecting the increasing significance of these resources in technology, green energy solutions, and global market dynamics.

The Rare Earths Mine That Won’t Need a Single Shovel (January 17, 2024, Source) — George Bennett, a South African mining veteran, discovered a unique opportunity in two gypsum waste piles near the Mozambique border, which contain high concentrations of rare-earth minerals crucial for wind turbines and electric vehicles. This finding is notable due to the rarity of economically viable rare-earth concentrations, particularly above ground, and China’s dominance in the rare-earth market. Rainbow Rare Earths Limited (LSE: RBW), Bennett’s company, projects over $1 billion in net value from these piles, with no traditional mining costs. The project is set to start in 2026 and offers a competitive edge due to its low production costs and innovative processing methods. Despite market volatility, Rainbow’s unique approach positions it well in the growing demand for rare-earth oxides, essential for the energy transition. Referral, CMI Director, Russell Fryer

China discovers new heavy rare earth mineral (January 16, 2024, Source) — Chinese scientists have discovered a new heavy rare earth mineral named Bayanoboite-Y at the Bayan Obo Rare Earth Mine in Baotou, North China’s Inner Mongolia Autonomous Region. This mineral, unique in its chemical composition and crystal structure, contains significant heavy rare earth elements like yttrium, dysprosium, gadolinium, erbium, and lutetium. It marks the world’s first fluorocarbonate heavy rare earth new mineral discovery, signifying a major breakthrough in understanding the occurrence and evolution of heavy rare earth minerals. The Bayan Obo mine, crucial to China’s rare-earth reserves, has discovered 18 new minerals since 1959. China, leading globally in rare earth production, plans to expand its rare-earth industry, leveraging recent advancements in mining efficiency and recovery rates. Referral, CMI Director, Alastair Neill

China’s rare earth exports rise on demand from EV, high-tech sectors (January 12, 2024, Source) — In 2023, China’s rare earth exports rose by 7.3% to 52,307 metric tons, fueled by growing demand from the electric vehicle and high-tech sectors. As the world’s leading producer, China’s rare earths are essential in various applications, including new energy vehicles, wind power, and military equipment. Despite international tensions over critical mineral control and China’s export restrictions on certain key materials, demand continued to outstrip supply, affecting prices. However, fears of supply shortages, especially after a mining suspension in Myanmar, drove prices up. While China increased its mining quotas, its rare earth exports dropped by 18.24% in December 2023 compared to the previous month. Meanwhile, China’s rare earth imports surged by 45% in the last month, reflecting a 44.8% annual increase. Referral, CMI Director, Alastair Neill

Will the magnet rare earths prices rise in 2024? (January 12, 2024, Source) — The magnetic rare earths sector, impacted by falling prices in 2022 and 2023 due to reduced global EV demand, is examined with a focus on Lynas Rare Earths Ltd. (ASX: LYC) and MP Materials Corp. (NYSE: MP). The downturn is linked to a slow global economy and EV sales decline, but a recovery is anticipated. Lynas has launched production at Australia’s Kalgoorlie Rare Earths Processing Facility, signaling progress. MP Materials is expanding in the USA with a focus on NdPr oxide and NdFeB magnets production. The sector’s future, potentially seeing a NdPr supply deficit as early as 2024, hinges on global economic recovery and EV market resurgence. These developments are crucial for establishing a Western-dominated rare earths and magnets industry within this decade.

ANSTO welcomes $13.9M critical minerals funding (January 12, 2024, Source) — The Australian Nuclear Science and Technology Organisation (ANSTO) has been allocated $13.9 million under the Australian Critical Minerals Research and Development Hub, as part of a wider $22 million funding package. This investment, announced by Minister Madeleine King, will support ANSTO’s research into rare earth elements, focusing on the discovery, extraction, and processing from clay-hosted and ionic adsorption deposits. Led by CEO Shaun Jenkinson, the project aims to enhance Australia’s standing in the global rare earth market, develop specific mineral processing techniques, and improve environmental outcomes. Collaborating with Geoscience Australia and CSIRO, ANSTO’s two-year project aligns with the national strategy for critical minerals, emphasizing their importance in green technologies and the pursuit of net zero emissions. Referral, CMI Co-Chairman Jack Lifton

Hunt for Critical Minerals Draws World Powers to Saudi Arabia (January 12, 2024, Source) — The global quest for critical minerals has brought world powers like the U.S., China, and Russia to Saudi Arabia, which is emerging as a key player in the mining sector. The kingdom, traditionally known for its oil wealth, is investing heavily in mining to diversify its economy and has positioned itself as a central hub in a “super region” rich in natural resources. This was highlighted at a recent mining conference in Riyadh, attended by international government and industry leaders. Saudi Arabia aims to leverage its strategic geographical position and vast untapped mineral wealth, recently re-estimated at $2.5 trillion, to attract global investments and partnerships. The conference saw significant participation, indicating a growing interest in Saudi Arabia’s mining potential and its efforts to establish stronger diplomatic and economic ties with various countries. Deals worth approximately $20 billion were expected, with the U.S. and Russia signing memorandums of understanding. This shift towards mining is part of Saudi Arabia’s broader Vision 2030 strategy to reduce oil dependency and cultivate new economic sectors. Referral, CMI Co-Chairman Jack Lifton

Why Core Lithium’s mine closure was just the tip of the iceberg (January 11, 2024, Source) — Core Lithium’s closure of its Grants mine reflects a broader crisis in the Australian mining sector, particularly impacting small-to-mid cap companies unnoticed for the last 12-24 months. Several mines, including First Quantum Minerals Ltd. (TSX: FM) and POSCO’s Ravensthorpe, Arcadian Lithium PLC’s (NYSE: ALTM | ASX: LTM) Mt Cattlin, and others, face similar risks due to declining battery metal prices and operational challenges. The cobalt market, for instance, saw dramatic price fluctuations, impacting projects like Jervois Global Limited’s (ASX: JRV | TSXV: JRV | OTCQB: JRVMF) Idaho Cobalt Project. Other companies, such as Hastings Technology Metals Ltd. (ASX: HAS) and Panoramic Resources Limited (ASX: PAN), have had to alter strategies due to various challenges. This trend contrasts with larger, stable companies like Pilbara Minerals and underscores the need for revised economic studies and strategies in a volatile market. Referral, CMI Director, Peter Clausi

Serra Verde Enters Commercial Production (January 11, 2024, Source) — Serra Verde has commenced commercial production of Mixed Rare Earth Concentrate from its Pela Ema deposit in Brazil. Targeting 5,000 tonnes annually, these rare earths are crucial for electric vehicle motors and wind turbines. The company has secured customer acceptance and offtake agreements, with plans to double production by 2030. Emphasizing sustainability, Serra Verde’s operations use eco-friendly methods and renewable energy. CEO Thras Moraitis highlights the company’s role in producing critical rare earths, supporting sustainable energy transitions. Ricardo Grossi, COO, emphasizes Brazil’s emerging role in rare earth production and the company’s commitment to sustainable practices and stakeholder benefits. Referral, CMI Director, Alastair Neill

Rare Earth Oxide separation work commences at the back-end pilot plant in Florida, U.S. (January 11, 2024, Source) — Rainbow Rare Earths Limited (LSE: RBW) has initiated the separation of rare earth oxides at their pilot plant in Florida, U.S., using a continuous ion exchange and chromatography process developed by K-Technologies. This innovative approach, replacing traditional solvent extraction, is set to produce critical rare earths like neodymium, praseodymium, dysprosium, and terbium, crucial for the green economy. The Johannesburg pilot plant has prepared and shipped mixed rare earth carbonate to Florida for separation, enhancing the process by producing a cerium-depleted version for more efficient separation. Despite some delays, the project continues to make significant advancements in optimizing the process for commercial scale. The Phalaborwa project, a key part of Rainbow’s strategy, aims to establish an independent, ethical supply chain for rare earth elements, essential in various advanced technologies and green energy solutions. Referral, CMI Director, Alastair Neill

CMI Masterclass: The Middle East’s Escalating Investment Interest in Africa’s Critical Minerals (January 10, 2024, Source) — The “CMI Masterclass: The Middle East’s Escalating Investment Interest in Africa’s Critical Minerals,” led by Tracy Weslosky of the Critical Minerals Institute, discussed the rising Middle Eastern investment in Africa’s mineral sector. Experts, including Melissa Sanderson, Jack Lifton, and Russell Fryer, explored its strategic significance for the global market and supply chain. The impact on American firms and competition with China in Africa were key topics. The session also examined the broader implications of such investments, as illustrated by Robert Friedland’s company’s Middle Eastern funding. The panel weighed the financial benefits against long-term strategic, economic, and geopolitical challenges, offering insight into the complex dynamics of global critical minerals investment.

Defense Metals Signs MOU with Ucore to Ship Rare Earth Carbonate to RapidSX™ Facility in Ontario (January 9, 2024, Source) — Defense Metals Corp. (TSXV: DEFN | OTCQB: DFMTF) and Ucore Rare Metals Inc. (TSXV: UCU | OTCQX: UURAF) have agreed on a Memorandum of Understanding (MOU) to forge a North American rare earth element (REE) supply chain. Under this MOU, Defense Metals will send a rare earth carbonate sample from its Wicheeda REE project in British Columbia to Ucore’s RapidSX™ facility in Ontario for processing. This initiative is a critical step in establishing a Western REE supply chain, responding to the growing demand for REE feedstock. The collaboration, featuring Defense Metals’ strategically located Wicheeda project and Ucore’s innovative RapidSX™ technology, aims to evaluate joint venture possibilities. This partnership aligns with Ucore’s broader strategy, including the development of a commercial REE processing plant in Louisiana, supported by the US Department of Defense and the Canadian Government.

Investor.News Critical Minerals Media Coverage:

• January 12, 2024 – Will the magnet rare earths prices rise in 2024? https://bit.ly/48Q1C6f
• January 9, 2024 – Defense Metals Signs MOU with Ucore to Ship Rare Earth Carbonate to RapidSX™ Facility in Ontario https://bit.ly/4aIQH05
• January 7, 2024 – Unveiling Hallgarten & Company’s Latest Insight: Model Resources Portfolio: Peak Climate Hysteria https://bit.ly/48raH5E

Investor.News Critical Minerals Videos:

• January 16, 2024 – Jeff Killeen on PDAC 2024: Shaping the Future of Critical Minerals and Mining https://bit.ly/3TYprop
• January 10, 2024 – CMI Masterclass: The Middle East’s Escalating Investment Interest in Africa’s Critical Minerals https://bit.ly/3HnUQZL

Critical Minerals IN8.Pro Member News Releases:

• January 19, 2024 – Power Nickel Commences 2024 Drill Program https://bit.ly/3vF8yot
• January 19, 2024 – Zentek Announces Eric Wallman Appointed as Chairman of the Board https://bit.ly/3u2y0nx
• January 17, 2024 – Defense Metals Announces McLeod Lake Indian Band Co-Design Agreement and Partnership Investment https://bit.ly/48UduUX
• January 16, 2024 – Fathom Announces Commencement of Exploration at Albert Lake Project and Selection for Participation at AME Roundup Core Shack https://bit.ly/3tJGujq
• January 16, 2024 – Appia Reports 92,758 ppm (9.3%) TREO, 13,798 ppm MREO (1.38%) and 2,241 (.24%) ppm HREO over 2m Within the Total Weighted Average of 38,655 ppm (3.87%) TREO, 6,869 ppm (.69%) MREO, and 1,380 ppm (.14%) HREO Across 24m (EOH) Following the Reanalysis of Over-Limit Assay Results from PCH-RC-063 at the PCH Ionic Adsorption Clay Project in Goias, Brazil https://bit.ly/48MrNuQ
• January 16, 2024 – F3 Announces Intention to Spin-Out F4 Uranium Corp. https://bit.ly/3Hm37NV
• January 15, 2024 – Panther Metals PLC – Fulcrum Metals: Update on Saskatchewan Uranium Projects https://bit.ly/423pmlh
• January 15, 2024 – Appia Announces Significant Geochemical Critical REE Assay Results at Alces Lake Project, Saskatchewan, Canada https://bit.ly/3HlFLbc
• January 12, 2024 – F3 Grants Options https://bit.ly/3vCzYvi
• January 12, 2024 – Ucore Invited to Present at National Defense Industry Association Event https://bit.ly/3TZ7giq
• January 11, 2024 – Panther Metals PLC: Graphite Discovery Grows Significantly at Obonga https://bit.ly/3SeTjvc
• January 11, 2024 – Ucore Makes Announcement Regarding Convertible Debentures https://bit.ly/4aQ3de5
• January 11, 2024 – Appia Receives Approval for 12 Additional Claim Blocks at Its PCH Rare Earths Ionic Adsorption Clay Project, Goias, Brazil https://bit.ly/3O0yzFc
• January 11, 2024 – Nano One Announces Carlo Valente as CFO https://bit.ly/3RSkpaf
• January 9, 2024 – Auxico Announces Results of a 2023 Sampling Campaign on the Minastyc Property https://bit.ly/47w158C
• January 9, 2024 – Critical Metals PLC Notice of AGM / Board Changes and Extension of Warrant Term https://bit.ly/3TSV2rB
• January 9, 2024 – Imperial Welcomes Guy Bourassa as CEO New Appointment Adds Depth to the Management Team https://bit.ly/48r6C1l
• January 9, 2024 – Power Nickel Raises $2,180,000, Outlines 2024 Plans https://bit.ly/41Pr4qe
• January 9, 2024 – Defense Metals to Ship Wicheeda Mixed Rare Earth Carbonate Sample to Ucore Rare Metals Inc. https://bit.ly/3RNhWhn
• January 8, 2024 – Sage Potash Secures Permit Approvals for Exploration Program at Sage Plain Potash Project https://bit.ly/3H9x9En
• January 8, 2024 – F3 Mobilizes to Drill A1 and B1 at PLN https://bit.ly/3TPP0Yw
• January 8, 2024 – Critical Metals PLC Placing https://bit.ly/3NPxiRm

Welcome to the December 2023 Critical Minerals Institute (“CMI”) report, designed to keep you up to date on all the latest major news across the critical minerals markets. Here is the CMI List of Critical Minerals or click here to visit the CMI Library.

Global macro view

December 2023 saw a further fall in U.S. inflation from 3.2%pa in October to 3.1%pa in November. As expected the U.S. Fed left interest rates unchanged at their December meeting. Even more significant was the Fed indicated that there are potentially ‘3 interest rate cuts coming’ in 2024. This was an early Christmas present for U.S. equity markets which continued their recent rally. Year to date, as of December 26, 2023, the S&P 500 is up 25.75% and the NASDAQ is up an amazing 43.25%. Of course, this follows heavy falls in 2022.

In late December China signaled a possible early 2024 interest rate cut when they reduced bank deposit rates. As a result China 30 year government bond yields hit their lowest level since 2005. All of this recent support for China’s economy and property market looks likely to set up a potential China recovery story in 2024. If China starts to recover in 2024 it would be a positive for commodity markets including the critical minerals.

The Russia-Ukraine war drags on through the European winter. There are some very early signs that both sides may be willing to end the war in 2024. We will see. Meanwhile, the Hamas-Israel war has been contained for now. We can only hope for peace in 2024.

Global plugin electric vehicle (“EV”) update

Global plugin electric car sales were 1,279,000 in October 2023 (the second-best month ever), up 37% YoY. November global sales reached 1.4 million. December should be even better. CPCA expects China’s NEV (New Energy Vehicle) retail sales in December 2023 to reach a record 940,000 units (41.4% market share), up 46.6% YoY. That should mean December global EV sales will be around 1.5 million.

This means that 2023 global plugin electric car sales should end up close to 13.6 million (~17% market share), for a growth rate of ~29% YoY (a significant slowdown from the 56% growth rate in 2022).

In other EV related news, in December Germany announced an abrupt ending to their EV subsidy. The subsidy was originally intended to apply until the end of 2024.

We also heard news that the U.S. is considering raising tariffs on Chinese EVs and Chinese solar products. The White House plans to complete a tariff review in early 2024. Chinese EVs entering the USA already have a 25% tariff. This follows the EU’s probe into China subsidies for EVs. All of this has come about due to the fact that about 60% of all global plugin EV sales are in China and the fact that China completely dominates the EV market and EV supply chain. This is now leading to a flood of compelling Chinese electric cars being exported to global markets where Western manufacturers (excluding Tesla Inc. (NASDAQ: TSLA)) are struggling to compete with China.

Finally, in December it was announced that Canada will require all new cars and trucks to be zero-emissions vehicles by 2035. The Canadian government stated: “The Standard will ensure that Canada can achieve a national target of 100 percent zero-emission vehicle sales by 2035. Interim targets of at least 20 percent of all sales by 2026, and at least 60 percent by 2030.”

Global critical minerals update

In December we got a key U.S. political announcement that will impact EV sales and critical minerals demand in 2024 and beyond.

U.S. Foreign Entity of Concern (“FEOC”) proposal

The U.S. DoE releases proposed interpretive guidance on Foreign Entity of Concern (“FEOC”) rules. FEOC’s include China, Russia, North Korea, and Iran. Key proposals include:

• Beginning 2024, companies that have >25% ownership or control by a FEOC will not be eligible for tax credits available under the Inflation Reduction Act (IRA).
• Beginning in 2024, an eligible clean vehicle (for IRA credits) may not contain any battery components that are manufactured or assembled by a FEOC.
• Beginning in 2025, an eligible clean vehicle may not contain any critical minerals that were extracted, processed, or recycled by a FEOC.

These rules are quite strict and it is looking like the majority of EVs sold in the USA will not qualify in 2024 and hence not receive the subsidy of up to US$7,000 per vehicle. For example, the Tesla Model 3 and Model Y base range EVs use Chinese made LFP batteries, making them both ineligible to meet the FEOC rules. Things will only get harder in 2025. Of course, this is designed to motivate auto and battery OEMs to hurry up and build a new western battery supply chain, independent of FEOC.

The FEOC proposal follows last month’s news of new guidelines for the EU Critical Raw Materials Act (“CRMA”) as discussed here. A key ruling was that “not more than 65% of the Union’s consumption of each strategic raw material comes from a single third county.”

U.S. proposal to create a ‘Resilient Resource Reserve’ for key critical minerals

As reported in December, the U.S. select committee has recommended the creation of a critical mineral reserve to protect domestic industry. The Fastmarkets report stated:

“The adoption of such a reserve is intended to “insulate American producers from price volatility and (the People’s Republic of China’s) weaponization of its dominance in critical mineral supply chain. Such a reserve would be used to sustain the price of a critical mineral when prices fall below a certain threshold and would be replenished through contribution from companies when prices are “significantly” higher”…The fund would target critical metals where there is high price volatility, low US domestic production and import dependence on China. Cobalt, manganese, light and heavy rare earths, vanadium, gallium, graphite, germanium and boron are critical minerals that fall under that category, according to the report…”

Note: Bold emphasis by the author.

Lithium

China lithium carbonate spot prices fell again in December 2023, with the price now at CNY 96,500/t (USD 13,505/t) and down 82% over the past year. Prices are now below the marginal cost of production, meaning a bottom should be found very soon (assuming EV sales hold up in 2024).

Industry participants are increasingly calling a likely bottom. For example, China Futures Co. analyst, Zhang Weixin, forecasts China’s lithium carbonate spot to bottom out between CNY 80- 90,000/t  (US$11,200-US$12,600/t). Goldman Sachs is a little more bearish with a 1 year price target for China’s spot lithium carbonate of US$11,000/t.

The negative price action has not deterred SQM and Gina Reinhart’s Hancock Prospecting (private) who recently increased their bid to A$3.70 per share to takeover Australia’s Azure Minerals Limited (ASX: AZS).

In December we saw shareholders approve the Allkem Limited (ASX: AKE | TSX: AKE) – Livent Corporation (NYSE: LTHM) ‘merger of equals’ which is now expected to close by January 4, 2024. The new company is to be known as Arcadian Lithium PLC (NYSE: ALTM | ASX: LTM).

Finally, in December we got news that free markets supporter Javei Milei was elected as the new Argentina President. This is good news for those companies with mining projects in Argentina, of which there are many lithium projects under development.

The lithium carbonate spot price collapsed in 2023 and is now below the marginal cost of production and expected to form a bottom very soon

Magnet Rare Earths

Neodymium prices fell in December to CNY 560,000/t almost 1/3 the price of the February 2022 peak. The one year outlook remains quite weak; however, this will largely depend on how China’s economy performs in 2024. A strong pickup in EV sales in 2024 could quickly change the market dynamics.

The big news in December in the rare earths market this month was China’s announcement to ban the export of rare earth processing technology. As discussed in an InvestorNews article, Western companies have been efficiently separating rare earths for some time, so this ban has minimal implications. CMI Co-Chair and rare earths expert, Jack Lifton, states: “Solvent extraction separation is a long-established practice everywhere. The issue is the production of rare earth metals and alloys and from them of rare earth permanent magnets. This is where China’s massive lead in manufacturing technology may be insurmountable. Time will tell.”

Of course, the trend for Western auto OEMs is concerning, especially following China’s recent introduction of export license permits on graphite products (including synthetic graphite, flake graphite, and spherical graphite).

Cobalt, Graphite, Nickel, Manganese, and other critical minerals

Cobalt prices (currently at US$12.91/lb) were lower the past month and continue to be very depressed. China’s slowdown and the slowdown in global electronics sales have suppressed cobalt demand at the same time as new supply from the DRC and Indonesia has risen.

One glimmer of hope for the Western cobalt producers is that the U.S. government announced in December the creation of a critical mineral ‘Resilient Resource Reserve’ (as discussed above).

Flake graphite prices also remain very weak with prices near the marginal cost of production. Following the introduction of Chinese export license permits in December 2023 there has been some increased signs of buying activity and a slight graphite price improvement. However, the main concern for flake and spherical graphite is that lower energy input costs in China have lowered the cost of producing synthetic graphite, thereby dampening demand for flake and spherical graphite. Despite this, there are several analysts now forecasting graphite deficits to begin as soon as 2024/25 as you can read in a recent InvestorNews article here.

Nickel prices fell slightly in December to US$16,279/t. The 1 year outlook for nickel remains poor due to oversupply concerns from Indonesia. A recovering global economy and Chinese property sector will be needed to help balance the nickel market, which is currently in oversupply.

Manganese prices also fell slightly in December and are now at CNY29.20/MTU.

2023 has been a tough year for many critical mineral prices (except for gallium, germanium, tellurium, indium, tin, and uranium – a critical mineral in Canada) as a slowing China and global economy weighed down demand at a time where supply increased. Uranium was the standout performer in 2023 with a gain of over 75%. You can read an article here from back in April 2023 where we highlighted the coming rise of uranium.

The key to watch in 2024 will be if we see lower interest rates in China trigger a China property and economy recovery. A stronger U.S. and Europe in 2024 would also help boost the global economy and demand for critical minerals. Lower interest rates in 2024 could potentially make it a great year for the auto sector and EV metals.

Wishing you all a safe and prosperous 2024 from the Critical Mineral Institute (“CMI”).

Welcome to the November 2023 Critical Minerals Institute (“CMI”) report, designed to keep you up to date on all the latest major news across the critical minerals markets. Here is the CMI list of critical minerals (CMI List of Critical Minerals) or visit the CMI Library where critical minerals expert Alastair Neill tracks the latest critical mineral lists worldwide.

Global macro view

High interest rates (and cost of living increases) in most Western countries continue to be a drag on the global economy. Europe, in particular, continues to struggle. Last month saw a welcome fall in US inflation to 3.2%pa suggesting the US Fed may not need to raise rates at their December 12-13 meeting.

China has been ramping up support for their beaten down property sector and economy. The key hope for 2024 is that China’s property market stabilizes and their economy improves. Some early positive signs are appearing.

The Russia-Ukraine war continues as does the Hamas-Israel war. The outcomes of these conflicts can impact oil prices and hence inflation, meaning they are key events to monitor as we head into 2024.

Global electric vehicle (“EV”) update

November 2023 saw strong EV sales reported for September 2023. Global plugin electric car sales for September were a record 1,291,000 up 23% YoY to 17% market share.

In September, China sales were up 22% YoY to 37% share. Europe sales were up 15% YoY to 25% share. USA sales were up 59% YoY to 9.9% share.

Results look very promising for October 2023 with global plugin electric car sales on track to reach or exceed ~1.35 million. China’s October sales have been announced and they hit a new record of 956,000 sales.

2023 sales look set to finish at ~13.6 million and 17% market share, which would be a 29% increase on 2022 (10.522 million and 13% market share). A 29% growth rate in 2023 would be a significant slowdown on the 56% growth rate achieved in 2022.

Regarding US Battery Electric Vehicle (“BEV”) car sales, the EIA recently reported that “BEV prices are now within $3,000 of the overall industry average transaction price for light-duty vehicles.”

Global plugin electric car ‘monthly’ sales in 2023 (source)

Finally, reports of a slowdown in US EV demand are ‘fake news’. US electric car sales are achieving record sales in 2023 as we saw in the US Energy Information (“EIA”) announcement on November 27, 2023. The chart below gives a good summary. The fact that Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) are slowing down their EV production plans due to weak EV sales says more about their failure to produce well priced and desirable EVs rather than the US market as a whole. There is a similar situation with Volkswagen AG in Europe. Both BYD Company Limited (OTC: BYDDF) and Tesla Inc. (NASDAQ: TSLA) continue to rapidly expand their production and EV sales. Legacy automakers need to up their game or be left behind by the EV leaders Tesla and BYD who continue to go from strength to strength.

Electric vehicles and hybrids grow to a record-high 18% of U.S. light-duty vehicle sales (source)

Global critical minerals update

Western governments, led by the USA, have continued to ramp up support for a Western EV and battery supply chain. In November we had two key announcements:

• On October 31 The Government of Canada announced: “Government of Canada to enhance critical minerals sector with launch of $1.5 billion Infrastructure Fund…“Our investments will help the mining industry develop important enabling and supporting infrastructure such as roads and energy facilities required prior to construction of mines.”
• On November 15 Energy.gov announced: “Biden-Harris Administration announces $3.5 Billion to strengthen domestic battery manufacturing…As part of President Biden’s Investing in America agenda, the funding will create new, retrofitted, and expanded domestic facilities for battery-grade processed critical minerals, battery precursor materials, battery components, and cell and pack manufacturing…”

These are positive developments, however not enough is being done upstream to support the critical minerals ‘miners’ to get into production. The Canadian Government’s announcement above is reasonably well directed, but it is to be spread over 7 years and is nowhere near enough money for what is needed. The US Government’s effort is further supported on the back of previous announcements as part of the 2022 Inflation Reduction Act (“IRA”) which intends to spend US$369 billion in energy security and climate change programs over ten years. However, most of the funds so far are to support battery manufacturing and EV plants and subsidies. More funds need to be put to use to help support the critical mineral mining companies, particularly as key critical minerals such as lithium is the bottle neck to ramp up western production of EV’s and energy stationary storage.

The IRA has been extremely successful so far at bringing EV and battery investments to the USA. For example, in November we heard a report of yet another US factory being planned with Toyota planning to invest US$8 billion in a North Carolina battery plant to increase EV capacity.

Over in Europe, the EU Critical Raw Materials Act (“CRMA”) has progressed to the next stage with ‘provisional’ agreement achieved, noting the increased focus on recycling. On November 13, the European Union Council announced:

“The Council and the European Parliament today reached a deal on the proposed regulation establishing a framework to ensure a secure and sustainable supply of critical raw materials, better known as the Critical Raw Materials Act. The agreement is provisional, pending formal adoption in both institutions…The political agreement reached today keeps the overall objectives of the original proposal but strengthens several elements. It includes aluminium in the list of strategic and critical materials, reinforces the benchmark of recycling, clarifies the permitting procedure for strategic projects, and requires relevant companies to perform a supply-chain risk assessment on their sourcing of strategic raw materials…On the global stage, the regulation identified measures to diversify imports of critical raw materials ensuring that not more than 65% of the Union’s consumption of each strategic raw material comes from a single third country…The provisional agreement keeps the benchmarks of 10% for extraction of raw materials and 40% for processing but increases the benchmark for recycling to at least 25% of EU’s annual consumption of raw materials…The provisional compromise also unifies the timings of the permit procedure. The total duration of the permit granting process should not exceed 27 months for extraction projects and 15 months for processing and recycling projects…Next steps. The provisional agreement reached with the European Parliament now needs to be endorsed and formally adopted by both institutions.”

Note: Bold emphasis by the author. Synthetic graphite was also added.

In November we did hear some more reports on sodium-ion batteries and how they can help meet the incredible battery demand needed for the green energy transition. Sodium-ion can help around the margin, but it will not replace lithium-ion. Sodium-ion batteries will be used for energy stationary storage and cheap (<US$10,000) low-end, low-range, small EVs. Beyond that, the sodium-ion battery as exists today will have limited demand. CATL is leading the way with sodium-ion battery manufacturing and is one to watch.

On November 25 The Fraser Institute reported:

“A total of 388 new mines must be built to produce the metals required to meet international government mandates for electric vehicle…The International Energy Agency (IEA) suggests that to meet international EV adoption pledges, the world will need 50 new lithium mines by 2030, along with 60 new nickel mines, and 17 new cobalt mines…Historically, however, mining and refining facilities are both slow to develop and are highly uncertain endeavors plagued by regulatory uncertainty and by environmental and regulatory barriers. Lithium production timelines, for example, are approximately 6 to 9 years, while production timelines (from application to production) for nickel are approximately 13 to 18 years, according to the IEA…The risk that mineral and mining production will fall short of projected demand is significant, and could greatly affect the success of various governments’ plans for EV transition.”

Note: Bold emphasis by the author.

Lithium

China lithium carbonate spot prices fell significantly in November 2023, with the price now at CNY 126,500/t (US$ 17,870/t) and down 78% over the past year. At these prices, marginal cost lithium producers in China are shutting down and Albemarle Corporation (NYSE: ALB) and JV partners at the Greenbushes Mine are considering production cuts in H1, 2024. A bottom is likely to form soon at or above CNY 100,000/t assuming global EV sales hold up at current rates of about 30% growth in 2023 and 2024.

Lithium takeovers continue despite weak sentiment

Chile’s SQM recently increased their takeover offer for Azure Minerals Limited (ASX: AZS) to US$900 million. Meanwhile, Mineral Resources Limited (ASX: MIN) has been building an equity stake in Azure Minerals as well as buying a 19.85% equity interest in Wildcat Resources Limited (ASX: WC8), another WA lithium junior miner. Not to be outdone, Australian billionaire Gina Reinhart has recently bought a 19% interest in Azure Minerals. Reinhart was active in buying Liontown Resources Limited (ASX: LTR), ultimately leading Albemarle to withdraw their takeover offer.

At least it looks like the Allkem-Livent merger is still going ahead. Allkem Limited (ASX: AKE) and Livent Corporation (NYSE: LTHM) have received all required regulatory approvals globally for their ‘merger of equals’, expected to close by January 4, 2024.

All of this takeover activity from the major lithium companies suggests that we are near a bottom in the lithium price cycle and that the mid to long-term outlook for lithium remains very strong.

Rare Earths

Neodymium (“Nd”) prices fell in November and are currently sitting at CNY 610,000/t. The neodymium price is down 33% over the past year, but still well above the 2019 price.

Neodymium 5 year price chart (source)

On November 16 Rare Element Resources Ltd. (OTCQB: REEMF) announced receipt of the final NEPA approval for their rare earth processing and separation demonstration plant to be built in Upton, Wyoming, USA. The news stated: “The Company is awaiting next stage budget approval from the DOE, which is providing approximately 50% of the project costs, to commence construction.”

Cobalt, Graphite, Nickel, Manganese and other critical minerals

Cobalt prices (currently at US$14.85/lb) remained flat the past month and continue to be very depressed. China’s demand for NMC cathode material for EVs has been weak as LFP cathodes (no nickel or cobalt) have gained in popularity.

Flake graphite prices also remain very weak with prices near the marginal cost of production. The big news in the graphite world is China’s intention to temporarily enforce export license permits on three synthetic graphite-related items and six natural graphite-related items, starting from December 1, 2023. As a result, we have seen some buying activity and flake graphite prices rising in Europe.

Nickel prices fell further to US$16,593/t in November due to oversupply concerns from Indonesia and the depressed Chinese property sector.

Manganese prices also fell slightly in November.

BMW (Bayerische Motoren Werke AG (OTC: BMWYY)), the prominent German automaker, is currently investigating a Moroccan cobalt supplier, Managem, following a report that raised serious concerns over labor and environmental violations at a cobalt mine in Morocco. The report, which surfaced in the German daily newspaper Sueddeutsche Zeitung, in collaboration with broadcasters NDR and WDR, alleged that the mining operations at Bou Azzer, southern Morocco, were releasing excessive arsenic levels into the environment. This revelation has significant implications given the critical role of cobalt in manufacturing electric car batteries, a market in which BMW is a key player.

The primary issue highlighted in the report is the alarming levels of arsenic detected in water samples from the vicinity of the mine. This finding is concerning, as arsenic, a naturally occurring element, is known for its toxic properties. Prolonged exposure can lead to severe health issues, including chronic poisoning, skin lesions, and cancer, as per the World Health Organization. Additionally, there were claims of Managem not adhering to international standards for worker protection and its actions against critical trade unions. These allegations contradict Managem’s stance, which asserts adherence to high environmental and labor standards.

Responding to these allegations, BMW has taken immediate steps to seek clarity and has initiated investigations. A spokesperson for BMW mentioned that they had contacted Managem, requesting additional information and emphasizing the need for corrective action if any misconduct was found. BMW’s approach underscores the increasing scrutiny by major corporations on their supply chains, especially concerning environmental and labor practices.

This situation is not isolated to BMW or Managem. The global cobalt supply chain has faced ongoing challenges. A large portion of the world’s cobalt reserves are in the Democratic Republic of Congo, where the mining sector has been plagued by issues of child labor and poor working conditions. In a bid to adhere to higher ethical standards, BMW has stopped sourcing cobalt from Congo and now relies on supplies from Morocco and Australia. The company has also planned audits at the Bou Azzer mine to assess social and environmental standards, which will guide their future decisions on the partnership.

Managem, a company majority-owned by the Moroccan monarchy and operating in several African countries, has refuted the allegations. It stated that an audit of its water supplies showed no irregularities and emphasized its commitment to the highest industry standards in terms of quality, safety, and environmental respect. The company also highlighted the absence of arsenic-related illnesses in the mine area, further backing its claims of compliance.

The automotive industry, particularly in the electric vehicle segment, is undergoing a significant transformation. Automakers like BMW are vying to secure supplies of critical minerals like cobalt while also ensuring that their supply chains adhere to stringent labor and environmental standards. This incident with Managem not only highlights the complexities involved in ethical sourcing but also the increasing pressure on multinational corporations to ensure responsible practices throughout their supply chains. As the demand for electric vehicles grows, so does the need for transparency and sustainability in the procurement of essential raw materials.