Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR), a prominent U.S. producer of uranium, rare earths, and vanadium, has just announced a definitive acquisition of Base Resources Limited (ASX: BSE | AIM: BSE). This transformative deal, valued at approximately A$375 million (roughly USD$240.9M), involves the purchase of 100% of Base Resources’ issued shares, marking a significant expansion into the global critical minerals market and reshaping Energy Fuels’ strategic capabilities across several key mineral sectors.

This acquisition integrates the Toliara heavy mineral sands project in Madagascar into Energy Fuels’ portfolio. Toliara is renowned for its extensive deposits of heavy mineral sands, particularly monazite, which is a byproduct of titanium and zirconium production. This site is one of the world’s most advanced and cost-effective sources for monazite, expected to play a pivotal role in Energy Fuels’ expansion into low-cost, high-value rare earth oxide production. The monazite from Toliara is slated for processing at Energy Fuels’ fully owned White Mesa Mill in Utah, positioning the company as a first-tier producer of separated rare earth element oxides in a U.S.-centered operation.

The strategic significance of this acquisition extends beyond resource expansion; it encompasses the incorporation of Base Resources’ seasoned mine development and operations team. This team has a proven track record in designing, constructing, and operating world-class heavy mineral sand operations in Africa, which will be invaluable in maximizing the operational efficiencies and productivity of the Toliara project.

Financially, the transaction involves an exchange of 0.0260 Energy Fuels common shares plus A$0.065 in cash per Base Resources share, representing a robust valuation that underscores the anticipated synergistic benefits. The deal, structured as a scheme of arrangement under Australia’s Corporations Act, highlights the strategic foresight of Energy Fuels’ management in securing a diversified supply of critical minerals essential for modern technologies such as electric vehicles and renewable energy systems.

Energy Fuels is also engaged in high-level discussions with various U.S. government agencies and offices, seeking support for this and other critical mineral projects both domestically and internationally. This engagement underscores the strategic importance of the Toliara project not just to Energy Fuels but to the broader U.S. supply chain for critical materials.

Jack Lifton, Co-Chair of the Critical Minerals Institute (CMI), underscored the global significance of this acquisition, stating, “This acquisition by Energy Fuels puts them into the world-class rare earth space. This is arguably the biggest rare earth announcement in the last 10 or 15 years in the United States, as it represents not just the reopening of old mines but the introduction of a new, large-scale source of critical materials from Africa, Brazil, and Australia.”

The acquisition is expected to be highly accretive to Energy Fuels’ shareholders, significantly enhancing the company’s asset value per share and unlocking substantial potential upside through increased production capacities and cost efficiencies. Notably, the Toliara project is set to provide a sustainable, low-cost source of uranium, complementing Energy Fuels’ already leading position in the U.S. uranium sector.

In summary, this acquisition not only secures a world-class mineral project at an attractive price but also strategically positions Energy Fuels at the forefront of the global critical minerals industry, ready to meet increasing demand with a robust and diversified production base. The integration of Toliara’s resources and expertise from Base Resources promises to enhance Energy Fuels’ capabilities across the board, ensuring long-term growth and profitability in the evolving energy and technology landscapes.

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, focusing on the significant shifts and investments in the critical minerals and technology metals industry. A notable development is the evolving dynamics of resource nationalism, particularly in Chile and Indonesia, where control over vital minerals like lithium and nickel is increasingly dominated by local governments. This shift challenges traditional Western dominance and marks a move towards a multipolar resource governance era. Adding to the market dynamics, Australia’s wealthiest, Gina Rinehart, has made aggressive moves into the critical minerals sector with her $120 million investment in Ecuador’s Linderos copper-gold project and significant stakes in rare earth companies, positioning her as a pivotal figure in global supply chains.

This week’s TMR Report also highlights several significant developments aimed at enhancing the supply chain and infrastructure of critical minerals. The U.S. Department of Energy has released a pioneering roadmap to integrate clean energy projects more rapidly into the nation’s electric grid, targeting a substantial reduction in project backlogs. In financial boosts, critical mineral projects in Queensland and South Australia have been pledged $585 million in government loans, emphasizing the growing commitment to fostering local industries and reducing dependency on international suppliers. Additionally, the closure of the Cobre Panamá copper mine has sparked a surge in copper prices, underlining the critical role of stable mineral supplies in maintaining economic stability and supporting green energy transitions. Each story is presented in chronological order to provide a comprehensive view of the week’s events, rather than by order of importance, ensuring readers receive a well-rounded perspective on the sector’s latest developments.

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

The Shifting Dynamics of Resource Nationalism as the Demand for Critical Minerals is Set to Soar: (April 18, 2024, Source) — As global demand for critical minerals like nickel, lithium, and rare earths surges, the dynamics of resource nationalism are evolving. Historically dominated by Western powers, control is shifting towards resource-rich countries asserting sovereignty over their natural assets. China’s longstanding monopoly on rare earths exemplifies this trend, leveraging resources for economic and strategic autonomy—a strategy now mirrored by Chile and Indonesia in their respective lithium and nickel sectors. Chile’s government, for instance, has moved to nationalize lithium extraction by partnering with SQM to form a national critical minerals company. Meanwhile, Indonesia mandates local processing for nickel, fostering a sustainable, self-sufficient industrial base. These strategic shifts are restructuring global supply chains, challenging traditional Western dominance and heralding a multipolar resource governance era. This realignment has profound implications for geopolitical dynamics and global power structures in resource management.

Billionaire Gina Rinehart Stakes Another Critical Minerals Claim: (April 18, 2024, Source) — Gina Rinehart, Australia’s richest person and head of Hancock Prospecting Pty Ltd., is diversifying her portfolio by targeting critical minerals, moving away from her traditional focus on iron ore. Her recent ventures include significant investments in South America and the rare earths market. Notably, she invested $120 million in Ecuador’s Linderos copper-gold project through a deal with Titan Minerals Ltd. (ASX: TTM), aiming for up to an 80% ownership. Additionally, she acquired a 49% stake in an Ecuadorian state-owned mining company. Rinehart also increased her influence in the rare earths sector by purchasing stakes in Lynas Rare Earths Ltd. (ASX: LYC) and MP Materials Corp. (NYSE: MP). Furthermore, she supported Arafura Rare Earths Limited (ASX: ARU) in Australia, which received a substantial government backing of A$840 million in grants and loans last month. Rinehart’s strategic investments mark her shift to a key player in the global market, enhancing supply chain security for technology and renewable energy resources.

DOE Releases First-Ever Roadmap to Accelerate Connecting More Clean Energy Projects to the Nation’s Electric Grid: (April 17, 2024, Source) — The U.S. Department of Energy (DOE) has unveiled a roadmap aimed at speeding up the integration of clean energy sources like solar, wind, and batteries into the national transmission grid, addressing the existing backlog of nearly 12,000 projects. This comprehensive guide, developed by DOE’s Interconnection Innovation e-Xchange (i2X), targets a variety of stakeholders, including transmission providers, state agencies, and equipment manufacturers. It proposes 35 solutions across four main areas: improving data access, enhancing the interconnection process, promoting economic efficiency, and ensuring grid reliability. The roadmap also sets forth ambitious goals for 2030 to facilitate the Biden-Harris Administration’s objective of achieving 100% clean electricity by 2035. These efforts are supported by DOE’s Grid Deployment Office and various funding opportunities aimed at fostering grid resilience and interconnection efficiency.

Critical minerals projects in central Queensland and South Australia to receive $585 million in government loans: (April 16, 2024, Source) —  Critical minerals projects in Queensland and South Australia are set to receive $585 million in federal government loans, marking a significant push by the Albanese government towards a “future made in Australia.” A major portion, $400 million, will fund Australia’s first high-purity alumina processing facility in Gladstone, central Queensland. This investment comes via the $4 billion Critical Minerals Facility, Northern Australia Infrastructure Facility, and Export Finance Australia. An additional $185 million is earmarked to accelerate Renascor Resources Limited’s (ASX: RNU) Siviour Graphite Project in South Australia. These projects aim to bolster the production of minerals essential for lithium-ion batteries and renewable technologies. This initiative aligns with national strategies to enhance renewable technology capabilities and drive economic growth through local job creation and sustainable industrial development.

A $10 billion Panamanian copper mine has been sitting idle since November – and it’s part of why the metal’s price is surging: (April 16, 2024, Source) — The Cobre Panamá mine, a major $10 billion copper-producing site, has been inactive since November, significantly contributing to the global copper shortage. This closure has led to an 11% increase in copper prices this year, reaching a peak not seen in over a year. Operated by Canada-based First Quantum Minerals Ltd. (TSX: FM), the mine previously supplied 1.5% of the world’s copper, enough to build five million electric vehicles annually. The shutdown resulted from a tax dispute with the Panamanian government, which sought more favorable terms. This has exacerbated a copper supply crisis, with the Bank of America declaring that the lack of new mining projects is now severely impacting refined copper production. This shortage coincides with increased demand for copper in green energy projects, further driving up prices.

SRC Expects to Produce 400 Tonnes of Rare Earth Metals Per Year Beginning in 2025: (April 15, 2024, Source) — The Saskatchewan Research Council (SRC) has entered into a five-year agreement with Vietnam’s Hung Thinh Group to import up to 3,000 tonnes of rare earth carbonate annually starting in June 2025. This will enable SRC’s Rare Earth Processing Facility in Saskatchewan to produce about 400 tonnes of rare earth metals per year. These metals are crucial for manufacturing modern technologies such as cellphones, electric vehicles, and green technologies. The deal, which stems from Saskatchewan’s diplomatic efforts in Vietnam, positions SRC as a pioneer in North America with a fully integrated commercial rare earth processing facility. The Saskatchewan Government’s $71 million investment in the facility aims to boost the local and national resource sectors by enhancing mid-stream supply chain capabilities. SRC, a major Canadian research entity, expects this initiative to catalyze industry investment and growth.

U.S. Department of State Minerals Security Partnership (MSP) Aims to Support Biden Policies on Critical Minerals: (April 15, 2024, Source) — The U.S. Department of State’s Minerals Security Partnership (MSP) was established to advance President Biden’s policies on critical minerals and enhance supply chain security. Led by Under Secretary Jose Fernandez, the MSP collaborates with various countries and the European Union to foster sustainable mineral supply chains, prioritizing environmental, social, and governance (ESG) standards. The partnership focuses on diversifying supply chains, boosting investments, promoting high ESG standards in mining, and increasing recycling. Companies involved must meet stringent ESG criteria, including responsible environmental practices and ethical community engagement. Despite challenges such as varying international ESG standards, the MSP remains dedicated to “greening” economic activities and addressing climate change through global cooperation.

Tesla supplier Piedmont Lithium gets key North Carolina mining permit: (April 15, 2024, Source) — Piedmont Lithium (Nasdaq: PLL | ASX: PLL), a supplier to Tesla, has secured a crucial mining permit from North Carolina regulators to develop a significant U.S. lithium source near Charlotte. Despite the permit’s conditional approval, requiring a $1 million reclamation bond, the company faces ongoing financial challenges and local regulatory hurdles. The project, which could be a major U.S. lithium producer, is opposed by local residents due to environmental concerns. Additionally, Piedmont must obtain local zoning approval and substantial funding, estimated over $1 billion, potentially through U.S. Department of Energy loans. The state has imposed stringent conditions, including regular environmental monitoring and a modified waste storage protocol. The project’s progress hinges on overcoming local opposition and securing necessary permits and funding.

Glencore-backed nickel miner fails to secure financing after rising costs: (April 15, 2024, Source) — Horizonte Minerals PLC (TSX: HZM | AIM: HZM), backed by Glencore PLC (LSE: GLEN), is facing financial difficulties with its Araguaia nickel mine project in Brazil due to a significant increase in estimated costs, now exceeding $1 billion, and concerns about market oversupply from Indonesia. As a result, the company is considering options such as selling the mine, liquidation, or securing subsidiary-level financing, though none are expected to benefit shareholders significantly. Following the news, the company’s shares plummeted by 84%. This setback reflects broader challenges for nickel projects outside Indonesia, given the country’s dominant market position. Horizonte’s struggles highlight investor reluctance to finance high-capital, early-stage projects amid unfavorable market conditions dominated by Indonesian supply, affecting not only Horizonte but also other nickel producers worldwide.

United States and United Kingdom Take Action to Reduce Russian Revenue from Metals: (April 12, 2024, Source) — The United States and the United Kingdom have jointly announced new prohibitions aimed at reducing Russia’s income from metal exports, specifically aluminum, copper, and nickel. The U.S. Department of the Treasury, in coordination with the UK, issued measures to prohibit the importation of these metals into the U.S. and restrict their use on global metal exchanges and in derivatives trading. These actions are intended to follow through on commitments made in the G7 Leaders’ Statement to cut off revenue streams that support Russia’s ongoing military activities in Ukraine. Treasury Secretary Janet L. Yellen emphasized that the measures are targeted to undermine Russian revenue while minimizing negative impacts on allies. UK Chancellor Jeremy Hunt highlighted the collaborative nature of these efforts, stressing their importance in impeding Russia’s war capabilities. As a result, major metal exchanges like the London Metal Exchange and Chicago Mercantile Exchange will no longer accept newly produced Russian metals from April 13, 2024.

Investor.News Critical Minerals Media Coverage:

• April 18, 2024 – The Shifting Dynamics of Resource Nationalism as the Demand for Critical Minerals is Set to Soar https://bit.ly/3W63V28
• April 18, 2024 – Billionaire Gina Rinehart Stakes Another Critical Minerals Claim https://bit.ly/3U2G0xU
• April 17, 2024 – InvestorNews.com Offers Real Time Access through the Revolutionary IR Mobile App, Now Offered Through Stock Marketing Inc. https://bit.ly/3TYrwPz
• April 16, 2024 – Tuan Tran Joins the Critical Minerals Institute (CMI) as the Newest Board Member https://bit.ly/49DlucM
• April 15, 2024 – U.S. Department of State Minerals Security Partnership (MSP) Aims to Support Biden Policies on Critical Minerals https://bit.ly/3Ji332z

Investor.News Critical Minerals Videos:

• April 19, 2024 – Terry Lynch on Power Nickel’s ‘New Crown Jewel Discovered on its NISK Project’ https://bit.ly/3JrQT7k
• April 17, 2024 – Critical Metals’ Russell Fryer on the Rising Tide for Copper and Cobalt in Africa https://bit.ly/4aFoWFa

Critical Minerals IN8.Pro Member News Releases:

• April 17, 2024 – Gary Stanley, Former Director of the Office of Critical Minerals and Metals at the U.S. Department of Commerce, Joins the First Phosphate Advisory Board https://bit.ly/3UkxbAL
• April 17, 2024 – Successful completion of Institutional Placement to raise A$15M; Entitlement Offer to be undertaken https://bit.ly/3W2SKHl
• April 16, 2024 – Appia Files NI 43-101 Technical Report on Maiden Indicated and Inferred Mineral Resource Estimate for the PCH Ionic Adsorption Clay Project in Goias, Brazil https://bit.ly/3xAahwd
• April 16, 2024 – NEO Battery Materials Appoints Renowned Battery Industry Pioneer Mr. Ricky Lee as Lead Managerial Advisor https://bit.ly/3UikF4C
• April 16, 2024 – Fathom Intersects Rottenstone-Like Nickel Tenor in Drillhole AL24077 at the Albert Lake Project https://bit.ly/3JlIfY8
• April 16, 2024 – Appia Engages Generation IACP to Provide Market Making Services https://bit.ly/43XNEhv
• April 16, 2024 – F3 Intersects Radioactivity Across Multiple Zones https://bit.ly/442U0fv
• April 15, 2024 – Power Nickel Releases Initial Assay on New Crown Jewel Discovered on its NISK Project https://bit.ly/4bdvD1h

The recent surge in silver prices has sparked renewed interest in the precious metal as an investment avenue, particularly amidst a backdrop of economic uncertainty and geopolitical tensions. Despite its traditional correlation with gold, silver has demonstrated an independent trajectory in recent months, outperforming its counterpart and attracting attention from investors seeking diversification and hedging opportunities.

Christopher Ecclestone, an analyst at Hallgarten & Company, sheds light on the dynamics shaping the silver market in a short note he released earlier this morning on Aya Gold & Silver Inc. (TSX: AYA | OTCQX: AYASF). He notes the intriguing divergence between gold and silver prices, emphasizing the impact of global events such as inflationary pressures and geopolitical conflicts on precious metal markets. Ecclestone’s insights underscore the complexity of factors influencing silver’s price movements and its potential as an investment asset.

One notable aspect of silver’s recent performance is its resilience amid challenging economic conditions. While gold has historically been viewed as the ultimate safe haven asset, silver’s versatility and industrial applications have contributed to its appeal as an alternative investment. Ecclestone highlights the role of industrial demand in driving silver prices, suggesting that silver’s utility extends beyond its function as a store of value.

Moreover, the Critical Minerals Institute (CMI) Co-Chair Jack Lifton always tells us that silver is the #1 technology metal, he often references a notable supply-demand imbalance in the silver market. The forecasted increase in global silver supply, coupled with strong demand projections, suggests a potentially favorable environment for silver investors. Ecclestone’s observations underscore the significance of supply dynamics in shaping silver’s price trajectory and investment outlook. And we are counting down to having John Carter from Silver Bullet Mines Corp. (TSXV: SBMI | OTCQB: SBMCF) at 9 AM EST, tomorrow – Wednesday, April 10, 2024, from 9-920 AM (click here to join).

In preparation – we have done our research on the Top 5 silver producers listed on the Canadian markets. Here are the top 5 silver companies listed on the TSX by market capitalization:

#1: Pan American Silver Corp. (TSX: PAAS | NYSE: PAAS)
Market Cap: C$ 9.357 billion
Latest News Release: April 8, 2024 – Pan American Silver reports additional high-grade drill results from the La Colorada Skarn project [Read more]
About: Pan American is a leading producer of silver and gold in the Americas, with operations in Canada, Mexico, Peru, Brazil, Bolivia, Chile, and Argentina. They have a strong reputation for sustainability, operational excellence, and financial management. Headquartered in Vancouver, B.C., their shares trade on the NYSE and TSX under “PAAS.”

#2: First Majestic Silver Corp. (TSX: FR | NYSE: AG)
Market Cap: C$ 3.167 billion
Latest News Release: April 1, 2024 – First Majestic Announces 2023 Mineral Reserve and Mineral Resource Estimates [Read more]
About: First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. They own and operate several mines, including San Dimas, Santa Elena, and La Encantada, along with development and exploration assets.

#3: Fortuna Silver Mines Inc. (TSX: FVI | NYSE: FSM)
Market Cap: C$ 1.993 billion
Latest News Release: April 8, 2024 – Fortuna reports strong gold equivalent production of 112,543 ounces in the first quarter of 2024 [Read more]
About: Fortuna Silver Mines Inc. is a Canadian precious metals mining company with five operating mines in Argentina, Burkina Faso, Côte d’Ivoire, Mexico, and Peru. They emphasize sustainability, efficient production, environmental protection, and social responsibility.

#4: MAG Silver Corp. (TSX: MAG | NYSE American: MAG)
Market Cap: C$ 1.751 billion
Latest News Release: March 27, 2024 – MAG Silver Announces Robust Updated Technical Report for Juanicipio [Read more]
About: MAG Silver Corp. is a Canadian exploration company focused on advancing high-grade precious metals projects in the Americas. Their joint venture interest in the Juanicipio Mine in Mexico positions them as a top-tier primary silver mining company.

#5: SilverCrest Metals Inc. (TSX: SIL | NYSE American: SILV)
Market Cap: C$ 1.497 billion
Latest News Release: March 11, 2024 – SilverCrest Reports Fourth Quarter and 2023 Annual Financial Results [Read more]
About: SilverCrest is a Canadian precious metals producer headquartered in Vancouver, BC. Their principal focus is the Las Chispas Operation in Sonora, Mexico, with ongoing initiatives to expand their asset base and operate multiple silver-gold mines in the Americas.

In summary, the recent surge in silver prices highlights the metal’s potential as a valuable component of a diversified investment portfolio. Whether through physical ownership, ETFs, mining stocks, or futures contracts, investors have various avenues to participate in the silver market and potentially benefit from its upward trajectory.

[Note from the Published: In this headline photo (L-R): Peter Clausi and John Carter from Silver Bullet Mines Corp. (TSXV: SBMI | OTCQB: SBMCF), with Stephen Burega from Romios Gold Resources Inc. (TSXV: RG | OTCQB: RMIOF). The 15-oz bar was drawn during PDAC, and the winner was Mathieu Stephens from NeoTerrex Minerals Inc. (TSXV: NTX)]

In an update on the disruptive industry news that broke this morning, Jack Lifton, Co-chair of the Critical Minerals Institute (CMI), offered a detailed analysis of Aclara Resources Inc.‘s (TSX: ARA) strategic move into the U.S. rare earths processing market. Aclara, backed by the Hochschild Mining Group, has set its sights on exploiting ionic clay deposits from Chile and Brazil to secure heavy rare earth elements (HREEs) like Dysprosium and Terbium, pivotal for high-performance magnet manufacturing. This venture is marked by partnerships with the Saskatchewan Research Council and Hatch Ltd. for the development and engineering of a processing facility. However, Lifton expressed reservations about the ambitious timeline, stating, “The actual announcement says they’ve engaged with the Saskatchewan Research Council to develop a separation technology operation and with Hatch, of Toronto, to actually engineer whatever the plan that comes out of the Saskatchewan Research Council is into hardware, into an actual separation plant.”

Lifton’s insights illuminate the intricate challenges Aclara faces in pioneering rare earth separation technologies in North America, a domain where success has been limited. He juxtaposes Aclara’s emerging efforts against established industry players like Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR), which has already made significant progress in light rare earth (LREE) separation and is now venturing into HREEs and alloys. This nuanced perspective raises doubts about Aclara’s capability to swiftly navigate the complex technological and operational hurdles inherent in rare earth processing.

The interview further delves into the competitive dynamics of the rare earth market, highlighting Aclara’s entry into a space occupied by Energy Fuels, and buildouts already in play from MP Materials (NYSE: MP) and Ucore Rare Metals Inc. (TSXV: UCU | OTCQX: UURAF). Each company has its unique approach and strategic plans, indicating a fiercely competitive environment. Lifton’s critique underscores a broader theme of Aclara’s need for deeper industry integration and strategic partnerships, and suggested that this was perhaps a missed opportunity in which they should have engaged with Ucore.

Lifton’s comprehensive analysis provides a crucial viewpoint on Aclara’s bold yet fraught journey into the rare earths processing industry. While Aclara’s plans signify a positive stride towards diversifying the global rare earths supply chain and enhancing geopolitical supply chain independence, Lifton underscores the formidable challenges ahead. This initiative marks a significant moment in the rare earth industry, setting the stage for Aclara’s ambitious endeavor to navigate the technological, logistical, and competitive hurdles that lie in its path.

In a much-anticipated turn of events, the Canadian government announced on Thursday, March 28th, the extension of the Mineral Exploration Tax Credit (METC) through to March 31, 2025. This decision, arriving just in the nick of time, has quelled the rising anxiety within the mining sector regarding the future of flow-through financings.

For weeks leading up to the announcement, speculation and concern have been rampant. A recent story by InvestorNews titled Anxiety Rises on the Future of Flow-Through Financings as METC Deadline Looms, Canadian Government Keeps Quiet highlighted the sector’s unease as the March 31, 2024, deadline approached without a word from the federal government. The METC has long been a cornerstone for supporting flow-through share (FTS) pricing for exploration companies, enabling them to raise funds effectively. The lack of confirmation on its renewal posed a significant threat to the cost of capital for these companies, potentially diluting their growth and exploration activities across Canada.

Peter Clausi, a Director for the Critical Minerals Institute (CMI), the CEO of CBLT Inc. (TSXV: CBLT), and a vocal advocate for the mining community, previously expressed deep concern over the government’s silence. The uncertainty, he noted, made planning and investment challenging for junior mining issuers. “Without the METC’s extension, a great deal of investment would not have been made, to the detriment of everyone in the junior mining company’s food chain. The extension of the METC means that the further incentive to invest in junior mining companies with assets in Canada is still there,” Clausi elaborated following the announcement. “Many thanks to everyone who spoke to the government, and especially to PDAC who has been a historical leader in this area.”

The extension is projected to offer support for mineral exploration investments. While the figure mentioned in the announcement was $65 million, industry experts deem this to be an exceptionally modest number. “The $65 million figure seems low compared to the expectations within the industry,” Clausi commented, providing an opportunity to share the perceived discrepancy between the government’s projections and the industry’s expectations.

Despite the last-minute nature of the renewal and the questions surrounding the amount of support provided, the extension has been met with relief. The decision underscores the government’s recognition of the mining sector’s crucial role in Canada’s economy, especially in the sustainable development of natural resources and the promotion of Indigenous economic participation.

Quotes from senior government officials, including The Honourable Chrystia Freeland and The Honourable Jonathan Wilkinson, affirm the government’s commitment to supporting the mining sector. Freeland emphasized the importance of mineral exploration in creating future mining jobs, particularly in northern and remote communities, as part of Canada’s transition to a net-zero economy. Wilkinson highlighted mining’s historic significance to Canada and the current focus on supporting the exploration of critical minerals crucial for clean technology.

The METC’s extension arrives as both a significant relief and a call to action for the mining industry. It not only addresses the immediate financial concerns but also signals the government’s ongoing support for mineral exploration. As Canada continues to navigate its economic and environmental goals, the sustained investment in the mining sector through mechanisms like the METC will be pivotal in unlocking the country’s vast mineral wealth, creating jobs, and fostering a sustainable future.

InvestorNews recently did an interview with Jeff Killeen, Director of Policy and Programs at the Prospectors & Developers Association of Canada (PDAC) who explained how PDAC has played a crucial role in lobbying for the METC’s renewal. Their efforts underscore the collaborative spirit required to ensure the mining sector’s stability and growth. With the extension now in place, the industry can breathe easier, focusing on the exploration and development that are fundamental to Canada’s economic and environmental well-being.

Peter Clausi Analyzes the METC Extension: Understanding Its Impact on Canada’s Mining Industry – Highlights from the Q&A Session:

Q: The Federal Government of Canada announced an extension of the 15% mineral exploration tax credit for investors and flow-through shares until March 31, 2025. What does this mean for the industry?

Peter Clausi: This means that the incentive to invest in junior mining companies with assets in Canada is still there without the mineral exploration tax. But a great deal of investment would not have been made, to the detriment of everyone in the junior mining company’s food chain, including drillers, prospectors, lawyers, accountants, and most importantly, First Nations. With the METC being extended for at least one year, those persons will continue to benefit from continued investments.

Q: Why did the government wait until the last minute to announce the METC extension, and why only for one year?

Peter Clausi: I blame Adam Smith and his invisible hand. I think the liberal government was using the Tax Act as a tool of social policy, which they ever right to…But I think the law of unintended consequences… would have been that those companies would not have seen investment and that’s not healthy for the Canadian mining ecosystem.

Q: How does this extension impact sectors not considered critical minerals?

Peter Clausi: Anything that’s not on the critical minerals list would have been impacted.

Q: The extension is projected to offer $65 million in support for mineral exploration investments. Is this consistent with your understanding of what’s needed?

Peter Clausi: It is. I would expect that $65 million number to be much larger, and that much larger level of support is what’s needed for the non-critical mineral exploration company.

Q: Can you comment on the significance of quotes from Chrystia Freeland and Jonathan Wilkinson in this particular news release?

Peter Clausi: It shows how seriously the Liberal government finally took this issue. And when they realized the unintended consequences of not extending the METC, senior officials in the government took action to extend the METC.

FTS Information sources include:

• The Canadian list of Critical Minerals, click here
• Mining Tax Canada
• How the flow-through share (FTS) program works – Canada.ca
• Canada Revenue Agency – Flow-Through Shares
• PDAC – Access to Capital, Flow-Through Shares
• PDAC Brochure on Flow-Through Shares
• Critical Minerals Institute

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 Chile’s attempts to spur lithium sector investments amidst regulatory and environmental concerns, France’s Orano exploring the possibility of a uranium enrichment plant in the U.S., and China’s challenge to U.S. electric vehicle subsidy policies at the WTO. Additionally, we delve into the EU’s potential adjustments to its 2035 EV mandate, President Biden’s electric vehicle policies influencing American election outcomes, and Kazakhstan’s push to increase uranium exports to the U.S.

This week’s TMR Report also highlights U.S. Critical Materials’ efforts to publicize its Bitterroot gallium deposits, significant for semiconductors and defense technologies; the Department of Energy’s largest-ever investment to decarbonize industry; Brazilian Rare Earths Limited’s new rare earth discovery in the Pele Project; challenges in America’s lithium laws slowing down the pace of domestic production; and collaborative efforts between Australia’s Pilbara Minerals and China’s Ganfeng to study a new lithium chemical plant. Additionally, we explore CATL’s discussions with Tesla and other automakers for U.S. licensing of its battery technology, aiming to navigate the tightening U.S. regulations on the battery sector. Through these stories, the TMR provides a comprehensive overview of the latest developments affecting the critical minerals sector, highlighting the challenges and opportunities ahead. To become a CMI member and stay informed on these and other topics, click here

Chile needs to finalize more lithium plan details to spur investment, miners say: (March 27, 2024, Source) — Chile’s attempt to draw private investment into its lithium sector is met with apprehension due to unresolved details and potential regulatory hurdles. The government plans to open 26 salt flats for private mining, excluding some reserved for state control, as part of President Gabriel Boric’s strategy to double lithium production by decade’s end. However, concerns over how contracts will be allocated, opposition from Indigenous communities, and environmental considerations could deter investors. Industry voices also caution against possible legal conflicts over mining rights and the negative impact of heavy state involvement on Chile’s investment appeal. With lithium prices and electric vehicle sales currently in a slump, the attractiveness of new projects is further challenged, making neighboring countries more appealing for lithium investment.

Chile opens lithium salt flats for investment, saves two for state control: (March 27, 2024, Source) — Chile has inaugurated a significant move to open more than two dozen lithium salt flats to private investment, while strategically keeping the prolific Atacama and Maricunga deposits under state majority control. This decision is part of President Gabriel Boric’s vision to increase state involvement in the nation’s lithium sector, which is the second-largest globally. The initiative could potentially double Chile’s lithium output within ten years, crucial for electric vehicle batteries, according to Finance Minister Mario Marcel. The tender process for 26 salt flats will start in April, aiming for completion in July. State-run enterprises are initiating projects in five other flats, seeking partners. Currently, only Sociedad Química y Minera de Chile S.A. (“SQM”) (NYSE: SQM) and U.S.-based Albemarle Corporation (NYSE: ALB) operate in Chile, specifically in the lithium-rich Atacama salt flat. The government, signaling further interest in lithium ventures beyond Atacama and Maricunga, is also contemplating the establishment of a national lithium company and emphasizes environmental protection and indigenous community involvement in new projects.

China to challenge Biden’s electric vehicle plans at the WTO: (March 27, 2024, Source) — China has filed a complaint with the World Trade Organization (WTO) against the United States, alleging that U.S. electric vehicle (EV) subsidy policies unfairly discriminate against Chinese products. This action comes in response to the U.S. Inflation Reduction Act, which, from January 1, disqualifies EVs from receiving tax credits if their critical minerals or battery components are sourced from Chinese, Russian, North Korean, or Iranian companies. China argues that these policies distort fair competition and disrupt the global EV supply chain by excluding Chinese products. The outcome of this dispute is uncertain, particularly if the U.S. appeals a ruling against it, due to the current dysfunction of the WTO’s Appellate Body. This complaint underscores the growing tensions in the global EV market, where China is a dominant player in battery technology and aims to expand its auto industry globally.

France’s Orano studying plan to build U.S. uranium enrichment plant: (March 27, 2024, Source) — French nuclear fuel company Orano, previously known as Areva, is exploring the possibility of constructing a uranium enrichment plant in the United States, as part of efforts to decrease U.S. dependency on Russian uranium imports. The plan, which had been shelved following the Fukushima disaster due to a surplus in enrichment capacity, is being revisited amidst growing demand and geopolitical tensions. Orano, which is state-owned, aims to support the U.S., the world’s largest nuclear power producer, in bolstering its domestic fuel production capabilities. This initiative aligns with recent U.S. legislative moves, including President Biden’s approval of significant funding for domestic uranium production. Orano also plans to expand its existing uranium enrichment capacity in France to meet U.S. demand and reduce reliance on Russian supplies.

EU May Water Down Harsh 2035 EV Mandate And Reprieve Hybrids: (March 27, 2024, Source) — The European Union and Britain’s ambitious plans to phase out combustion engine vehicles by 2035 in favor of electric vehicles (EVs) are facing scrutiny and potential adjustments. Experts suggest that hybrids may be given more leeway to ensure a smoother transition. The automotive industry is at risk of being dominated by more cost-effective Chinese EVs, prompting concerns over the financial viability of European carmakers in the shift to electric. Stricter CO2 emissions targets are also causing unease among manufacturers. Reports indicate that EV sales growth is slowing, and the current market offerings are deemed too expensive for widespread adoption, with technology and infrastructure not fully meeting consumer needs yet. There’s lobbying for regulatory review and more flexible approaches, including a broader acceptance of hybrid models and other technologies to reduce emissions. The upcoming review by the EU, along with potential geopolitical shifts and industry collaborations, could influence the pace and nature of Europe’s transition to electric mobility.

Electric cars will decide the outcome of the American election: (March 26, 2024, Source) — President Biden’s aggressive promotion of electric vehicles (EVs) may jeopardize his political standing, particularly in critical Midwestern swing states. His administration’s focus on EVs, marked by substantial price differences and practicality issues compared to traditional vehicles, risks alienating a significant voter base. This strategy, characterized by stringent mileage requirements and incentives for EV adoption, could undermine the traditional auto industry, a cornerstone of states like Michigan and Wisconsin. Furthermore, the policy may inadvertently bolster China’s position in the global EV market, while threatening job losses across America’s automotive sector, including sales, maintenance, and after-market services.

World’s Top Uranium Miner Seeks to Boost Exports to US: (March 26, 2024, Source) — Kazakhstan, the leading uranium producer globally, is intensifying efforts to increase its uranium exports to the United States. This initiative follows discussions on energy cooperation with U.S. Senator Steve Daines. Kazakhstan already holds contracts for uranium product supply until 2032 with key U.S. energy companies. The push for expanded uranium exports comes at a time when the demand for this critical metal is rising, driven by a global shift towards nuclear power to combat climate change. Furthermore, the U.S. is contemplating a ban on imports of enriched Russian uranium, used in both nuclear reactors and weapons, highlighting the strategic importance of identifying alternative uranium sources.

Mining company touts Bitterroot gallium deposits: (March 26, 2024, Source) — U.S. Critical Materials is stepping up its public outreach concerning its mining claims in the Bitterroot’s headwaters, with a focus on valuable gallium deposits over 6,700 acres, essential for semiconductors, 5G, smartphones, satellite systems, and defense technologies. The U.S. government, recognizing the strategic importance of gallium—especially amidst a Chinese export embargo—is heavily involved in funding and driving the production of REE and other critical minerals, with significant contributions from federal agencies. Preliminary exploration at Sheep Creek has seen support from the DOD and collaboration with academic and geological institutions, utilizing advanced survey techniques. Amidst concerns over national security due to dependency on imported gallium, U.S. Critical Materials boasts high-grade gallium deposits and is exploring environmentally sustainable separation processes. The company’s partnership with Idaho National Laboratories aims to develop new processing methods to establish a domestic supply chain, a crucial step given the current lack of processing facilities in North America and the environmental and commercial challenges of existing separation technologies.

Department of Energy announces largest-ever investment to decarbonize industry: (March 25, 2024, Source) — The Department of Energy has announced a substantial $6 billion funding for 33 projects across the U.S. to reduce emissions in energy-intensive industries. This effort, part of the largest-ever investment to decarbonize industry, leverages the Bipartisan Infrastructure Law and Inflation Reduction Act, aiming for a combined investment of $20 billion including company contributions. Targeting major sectors like steel, aluminum, cement, and food production, the initiative is expected to cut down 14 million metric tons of CO2 annually, equivalent to removing 3 million gas-powered cars from the roads. Highlighted projects include Constellium’s zero-carbon aluminum plant in West Virginia, with potential federal funding up to $75 million, and Kraft Heinz’s $170.9 million investment to electrify and decarbonize food production at 10 facilities. Additionally, nearly 80% of the projects are located in disadvantaged communities, emphasizing the investment’s broader social and environmental benefits.

Brazilian Rare Earths Limited (ASX:BRE) Announces New Rare Earth Discovery – the Pele Project: (March 25, 2024, Source) — Brazilian Rare Earths Limited (ASX:BRE) has unveiled the Pele Project, a significant new rare earth discovery in Bahia, Brazil, positioned 60km southwest of their Monte Alto Project. This district-scale endeavor is set to explore ultra-high grade REE-Nb-Sc mineralization across a target area vastly exceeding that of Monte Alto. Key findings include extensive geophysical anomalies, the largest known hard rock monazite outcrop extending over 30m, and promising high-grade monazite sand intercepts. Initial results suggest a substantial rare earth mineralization potential, mirroring the successful exploration techniques employed at Monte Alto. With comprehensive surveys and an imminent diamond drilling program, CEO Bernardo da Veiga anticipates accelerating exploration to uncover this area’s full potential, marking another stride in expanding their rare earth province footprint.

America’s lithium laws fail to keep pace with rapid development: (March 25, 2024, Source) — Efforts to make the United States a leading global lithium producer are hindered by a tangled set of state regulations, creating a significant barrier against reducing dependence on foreign lithium supplies, particularly from China. Confusion over ownership, valuation, and processing of lithium resources across states like Texas and Louisiana, combined with fluctuating commodity prices and technical challenges, are major obstacles. This situation complicates the Biden administration’s ambitions for electrification and increasing domestic lithium production. Despite the urgent need for regulatory clarity to attract investment and advance projects, states vary widely in their approaches to lithium extraction and regulation. The uncertainty around regulatory frameworks is delaying the development of lithium projects, thus affecting the U.S.’s ability to meet its lithium production and electrification goals.

Pilbara Minerals and China’s Ganfeng agree to study for lithium chemical plant: (March 24, 2024, Source) — Australia’s Pilbara Minerals and China’s Ganfeng Lithium have agreed to study the feasibility of building a lithium chemical plant capable of producing 32,000 metric tons of lithium carbonate or hydroxide annually, at an undecided location. The study, set to complete by March 2025, explores potential sites, including Australia, aiming for greater supply chain diversification. Pilbara Minerals, which has partnerships in other lithium projects, seeks to reduce transportation volumes and carbon footprint through midstream lithium chemicals production. Preliminary discussions have shown strong international interest in the venture, with incentives such as economic benefits and support for permitting. The venture would be a 50:50 partnership, with Ganfeng considering a stake sale based on U.S. Inflation Reduction Act benefits. Pilbara is increasing spodumene production to 1 million tons annually and may expand further, committing 300,000 tons annually to this project if it proceeds.

CATL in talks with Tesla, global automakers for US licensing, WSJ reports: (March 25, 2024, Source) — Contemporary Amperex Technology Co. Ltd. (CATL), a leading Chinese electric-vehicle battery maker, is currently in discussions with Tesla Inc. (NASDAQ: TSLA) and other automakers to license its battery technology in the U.S. This approach comes as an alternative to establishing its own manufacturing facility in the country. These negotiations, still in the early stages, revolve around the extent of the collaboration and the specifics of the technology Tesla would license, influenced by the EV giant’s financial health. CATL’s existing partnership with Ford, which recently adjusted its investment strategy for a Michigan battery plant to use CATL’s licensed technology amid legislative pushback, serves as a blueprint for potential agreements with other U.S. car manufacturers. This development is amidst a global downturn in EV demand and tighter U.S. regulations on the battery sector to curb Chinese influence, with CATL also focusing on innovations like faster charging batteries for Tesla.

CATL Working With Tesla on Fast-Charging Cells, Supplying Nevada: (March 25, 2024, Source) — CATL is enhancing fast-charging batteries for Tesla, targeting an electric car under $25,000. Emphasizing cost-efficiency and longevity, CATL’s collaboration extends to supplying Tesla’s Nevada factory and innovating in battery technology. Despite global EV market challenges, CATL sustains growth through a diversified clientele including BMW and Mercedes-Benz, and is adapting to U.S. market restrictions by licensing its technology, notably to Ford. With geopolitical tensions affecting trade, CATL values client trust and plans to expand production in Europe and Southeast Asia. The company’s strong financial standing allows it to delay further funding rounds, focusing instead on technological advancement and strategic partnerships to navigate the evolving electric vehicle landscape.

Investor.News Critical Minerals Videos:

• March 25, 2024 – Western Uranium & Vanadium’s George Glasier on Gearing up for SMC to Commence Production in Colorado https://bit.ly/3ITmUVA

Critical Minerals IN8.Pro Member News Releases:

• March 28, 2024 – American Clean Resources Group Establishes Environmental Sustainability Board https://bit.ly/43JkN0o
• March 28, 2024 – Scandium Canada Forms a Strategic Advisory Committee and Confirms its Initial 3 Members https://bit.ly/3ISuHTM
• March 28, 2024 – Nano One Reports Q4 2023 Results and Provides Progress Update https://bit.ly/3IXI2Km
• March 26, 2024 – Voyageur Pharmaceuticals Files Audited Annual Financial Statements and Grants Stock Options https://bit.ly/4aOgTFV
• March 26, 2024 – First Phosphate Reports Published Research Studies for its Lac à l’Orignal, Mirepoix and Bégin-Lamarche Properties in the Saguenay-Lac-St-Jean region of Quebec, Canada https://bit.ly/3TOTEWq
• March 26, 2024 – Kraken Energy Confirms Elevated Radioactivity in Both Initial Drill Holes at Harts Point Property, Utah https://bit.ly/3VskYem
• March 25, 2024 – Bechtel contract to support ASM with engineering at the Dubbo Project https://bit.ly/3Vsx8E3

In a notable development within the lithium industry, Albemarle Corporation (NYSE: ALB), the world’s largest producer of lithium, has announced its plan to host an auction for a significant quantity of lithium on March 26. This move marks a strategic attempt to address the persistent issue of price discovery in a market characterized by its lack of transparency and high volatility. Jack Lifton, Co-founder of the Critical Minerals Institute (CMI), offers insightful commentary on the implications of this event, tying it to the broader challenges facing the lithium market today.

The auction by Albemarle, according to a news story published on Reuters yesterday is a response to the dramatic shifts witnessed in the lithium sector, propelled by the electric vehicle (EV) revolution. Since 2007, lithium production has surged from less than 4,000 tons to 186,000 tons, underscoring the metal’s critical role in the transition towards electrification. Despite this growth, the industry has struggled with establishing a clear and stable pricing mechanism, a challenge that Lifton identifies as a major impediment to investment and development within the sector.

Historically, the pricing of lithium has been opaque, often negotiated privately between producers and buyers. This lack of clarity has been further complicated by the introduction of lithium contracts on Chinese exchanges, which, despite their potential, have failed to provide a global benchmark due to issues of transparency and accessibility for international market participants. Western attempts to establish futures trading for lithium, such as those by the London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME), have also seen limited success, highlighting the disconnect between traditional commodity trading mechanisms and the unique dynamics of the lithium market.

Albemarle’s upcoming auction represents an innovative approach to tackling these pricing challenges. By opening up the sale of a substantial quantity of lithium to competitive bidding, the company aims to foster greater transparency and provide a more accurate reflection of current market valuations. This initiative not only seeks to bridge the gap in price discovery but also serves as a potential model for future transactions in the industry.

Lifton emphasizes the importance of this auction in the context of the lithium market’s evolution. The shift towards digital auctions and the potential for establishing more transparent pricing indices reflect the industry’s adaptability and its search for solutions that align with the realities of global lithium supply and demand. However, he also cautions that while this auction may offer valuable insights, it is not a definitive solution to the market’s overarching issues of volatility and unpredictability.

In conclusion, Albemarle’s decision to host an auction for its lithium products is a significant step towards addressing the critical challenge of price discovery in the lithium market. As Lifton notes, this approach represents a move away from traditional pricing mechanisms and towards a more transparent and dynamic model. While the long-term impact of this and similar initiatives remains to be seen, they underscore the lithium industry’s ongoing efforts to adapt to the complexities of a rapidly evolving global market.

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 the Biden administration’s massive $2.26 billion loan to Lithium Americas Corp. for the Thacker Pass mine in Nevada, aiming to boost domestic lithium production for electric vehicles; the Australian government’s significant A$840 million investment in Arafura Rare Earths Limited to secure a sovereign supply of rare earth elements; and the Canadian federal government’s investment in Saskatoon’s Saskatchewan Research Council to enhance its Rare Earth Processing Facility. These developments underscore a global effort to secure critical mineral supplies, reduce dependence on foreign sources, and advance the transition towards cleaner energy and technology.

This week’s TMR Report also highlights several other important developments in the critical minerals sector. Notable stories include the criticism from the Canadian Automobile Dealers Association regarding Quebec’s decision to phase out electric vehicle purchase incentives, adjustments in electric vehicle strategies by major automakers amid shifting market dynamics, and the UK’s trade pact with Texas aimed at boosting the green industry. Additionally, the report covers POSCO International’s significant deals to supply rare earth permanent magnets to North American and European automakers, signs of recovery in the global lithium market after a massive downturn, geopolitical competition for the Democratic Republic of the Congo’s mineral wealth, Greece’s emergence as a significant source of critical minerals, the U.S. Department of Defense’s initiative to establish a “mine-to-magnet” supply chain, challenges and opportunities in Canada’s mining industry, and the call by global miners for the London Metal Exchange to introduce a green premium for nickel. These stories provide a comprehensive overview of the current state and future prospects of the critical minerals and technology metals industry, reflecting its importance to technological advancement, national security, and the global transition to green energy. To become a CMI member, click here (https://criticalmineralsinstitute.com/join)

Biden Jump-Starts Electric-Vehicle Push With Massive Lithium Loan (March 14, 2024, Source) — The Biden administration is energizing the U.S. electric vehicle (EV) sector with a $2.26 billion loan to Lithium Americas Corp. (TSX: LAC | NYSE: LAC) for its Thacker Pass mine in Nevada, aiming to fortify domestic lithium production for EV batteries. This investment, part of a broader initiative to secure half of new vehicle sales as EVs by 2030, will fund a refining plant critical for producing battery-grade lithium. Despite a recent slowdown in EV sales and a plunge in lithium prices, the project seeks to reduce U.S. dependence on foreign battery minerals, notably from China. Expected to start in 2027, the Thacker Pass mine will significantly contribute to the domestic EV industry, promising to supply lithium for up to 800,000 EVs annually. This move aligns with efforts to transition towards cleaner energy and reduce reliance on international sources.

The Australian Government Steps into the Critical Minerals Supply Chain Ring (March 14, 2024, Source) — The Australian government’s backing of Arafura Rare Earths Limited (ASX: ARU) with A$840 million underscores a strategic push to lessen reliance on Chinese critical mineral sources, aiming to secure a sovereign supply of rare earth elements vital for electric vehicles and renewable technologies. This investment signals Australia’s intent to lead in the global rare earth market, enhancing private sector confidence as evidenced by rising values in related investments, including those by Gina Rinehart’s Hancock Prospecting. The move highlights Australia’s ambition to not only overcome immediate financial challenges in the mining sector but also to establish itself as a crucial player in renewable energy technology, fostering global supply chain resilience and advancing the green energy transition.

Ottawa invests $6M in Saskatoon rare earth processing facility (March 14, 2024, Source) — The Canadian federal government is investing $6 million in Saskatoon’s Saskatchewan Research Council to boost its Rare Earth Processing Facility, marking a significant step in processing critical minerals for high-tech uses like electric vehicle batteries and wind turbines. This funding will commercialize a process for extracting rare earth oxides from waste and develop an automated smelting process for commercial-quality metals, aiming to enhance sustainable and efficient production. The investment reflects a collaboration between federal and provincial governments, highlighting the national importance of establishing a domestic rare earth supply chain. It promises economic growth and job creation, positioning Saskatoon as a key player in meeting global demand for critical minerals and supporting the transition towards a greener economy.

A Step Backwards for Quebec’s Automotive Electric Transition (March 13, 2024, Source) — The Canadian Automobile Dealers Association (CADA) criticizes the Quebec government’s 2024 Budget decision to phase out electric vehicle (EV) purchase incentives amid an affordability crisis. This move is seen as detrimental to Quebec’s leading position in EV adoption, fueled by an effective incentive program. CADA refutes the government’s claim of a narrowing price gap between EVs and traditional vehicles, highlighting that price parity is not expected until 2033. The association warns that removing incentives could slow EV adoption, contrasting with the successful examples of Quebec and British Columbia, which offer substantial financial incentives. CADA urges the government to reconsider, emphasizing the importance of incentives in achieving environmental goals and maintaining affordability for Quebecers.

EV euphoria is dead. Automakers are scaling back or delaying their electric vehicle plans (March 13, 2024, Source) — Automakers are adjusting their electric vehicle (EV) strategies amid fading EV euphoria, scaling back or delaying plans despite initial optimism. Industry giants like Ford, General Motors, Mercedes-Benz, Volkswagen, Jaguar Land Rover, and Aston Martin are shifting towards a more balanced vehicle offering, incorporating gas-powered, hybrid, and electric vehicles. This approach reflects a slower transition to an all-electric future, diverging from previous ambitious EV growth targets. Despite a reduction in growth expectations, the demand for EVs continues to rise, albeit at a slower pace, with sales still predicted to increase significantly. The industry acknowledges the necessity of hybrid models to bridge the transition to electrification and meet emission standards. This recalibration underscores the automotive sector’s response to less-than-expected consumer uptake of EVs and the reality of current market conditions, suggesting a more gradual shift towards electrification.

UK Signs Trade Pact With Texas in Effort to Boost Green Industry (March 12, 2024, Source) — The UK has signed a trade pact with Texas to enhance cooperation in green energy, aerospace, and advanced technologies, marking the eighth non-binding memorandum of understanding (MoU) with a US state since Brexit. This agreement aims to boost the collective GDP of these states to $6.8 trillion, a quarter of the US economy. It includes mutual recognition of engineering qualifications to facilitate talent exchange for infrastructure projects. The pact also focuses on making business easier in sectors like hydrogen and carbon capture. Despite not being the comprehensive Free Trade Agreement that Brexit supporters hoped for, this deal reflects the UK’s strategy of forming state-level agreements in the US. Texas, the UK’s ninth largest trade partner, exchanged £14.7 billion in goods with the UK in 2023. However, some critics argue these MoUs do little to reduce tariffs and aren’t sufficiently promoted.

POSCO International signs deal for permanent magnet supply with US, European automakers (March 12, 2024, Source) — POSCO International has inked deals worth 1.16 trillion won ($885 million) to supply rare earth permanent magnets, essential for electric vehicle (EV) motors, to North American and European automakers. These contracts aim to diversify the supply chain away from China, utilizing materials from the US, Australia, and Vietnam. The company’s U.S. subsidiary will supply a North American carmaker with magnets worth 900 billion won from 2026 to 2031, while its German subsidiary will provide a European brand with magnets valued at 260 billion won from 2025 to 2034. Star Group, Korea’s exclusive rare earth magnet producer, will handle production. This marks a strategic entry into markets dominated by China, reflecting POSCO’s efforts to expand its global footprint and secure additional orders with car and motor manufacturers.

After Massive Bust, Global Lithium Market Shows Signs of Life (March 12, 2024, Source) — The global lithium market, vital for electric vehicle batteries, is witnessing a cautious revival after a drastic downturn. Prices for lithium carbonate in China have surged to a post-December high following an over 80% fall in 2023, with futures contracts also seeing significant gains. This rebound is amidst a global supply glut that previously tanked prices. Leading producers remain hopeful, with giants like Albemarle Corporation (NYSE: ALB) and Sociedad Química y Minera de Chile S.A. (“SQM”) (NYSE: SQM) continuing expansions despite the market’s volatility. Efforts to rebalance include production cutbacks by some firms. However, analysts warn that the recovery could be fragile, with environmental regulations in China and a persistent supply surplus posing challenges to a sustained rally. Skepticism remains regarding the end of the bear market amidst these tentative gains.

The (Bidding?) War For the DRC (March 12, 2024, Source) — The Democratic Republic of the Congo (DRC) is a focal point for global powers due to its rich deposits of critical minerals essential for modern technologies and green economies. China, Saudi Arabia, the United Arab Emirates, and Russia are the main players, each with distinct strategies and impacts. China has a controversial history in DRC’s mining sector, while Saudi Arabia’s investment approach fosters a positive development model. The UAE’s agreement aims to enhance artisanal mining, and Russia’s involvement hints at a Cold War-style influence game. In contrast, US and European engagement in securing these vital resources has been relatively minimal. These dynamics underscore the geopolitical competition over the DRC’s mineral wealth, pivotal for technological advancement and climate change mitigation.

Critically important metals are found (March 11, 2024, Source) — Greece is emerging as a significant potential source of critical minerals essential for the clean energy transition, attracting investor interest. The Ministry of Environment and Energy, bolstered by Rockfire Resources PLC’s positive findings in Molaoi, southern Greece, indicates substantial deposits of germanium, gallium, lead, silver, and zinc. Germanium’s uses span fiber-optics to solar panels, while gallium, extractable from Greece’s abundant bauxite, is vital for electronics. The EU has noted Mytilineos’ pilot project for gallium extraction from bauxite, potentially satisfying European demand. Additionally, Mytilineos explores scandium production, beneficial in aerospace and electric vehicles, forecasting a significant demand increase. Rockfire Resources plans further exploration and a viability study post-summer. Greece’s untapped resources, including antimonite in Chios and bismuth near Xanthi, underscore its strategic position in supporting Europe’s energy transition and reducing reliance on imports, especially from China.

DOD Looks to Establish ‘Mine-to-Magnet’ Supply Chain for Rare Earth Materials (March 11, 2024, Source) —  The Defense Department is actively pursuing the establishment of a domestic “mine-to-magnet” supply chain for rare earth materials, crucial for manufacturing permanent magnets used in significant U.S. military systems and commercial applications. Recognizing the vulnerability of relying on foreign sources, notably China, for these materials, the DOD aims to enhance national security through self-reliance. It has allocated over $439 million since 2020 to develop this supply chain, covering mining, separation, refining, and manufacturing processes within the U.S. This initiative is guided by the National Defense Industrial Strategy and seeks to achieve a resilient, domestic supply chain capable of meeting all U.S. defense requirements by 2027. Critical defense systems, such as the F-35 Lightning II aircraft, Virginia and Columbia class submarines, and various missile and radar systems, depend heavily on these rare earth materials. The DOD’s strategy includes significant investments in U.S.-based companies and technologies to ensure the country’s self-sufficiency in rare earth element production and magnet manufacturing, aiming to eliminate dependency on foreign sources and secure the future needs of both defense and commercial sectors.

Critical minerals mining industry requires more of everything if Canada to be a global player (March 11, 2024, Source) —  The KPMG in Canada survey reveals optimism among Canadian mining leaders regarding the potential for Canada to be a global leader in critical minerals. However, they acknowledge significant obstacles, including the need for more investment, government support, and favorable tax policies. Challenges like decarbonization, lack of domestic refining capacity, raising capital, environmental, social, and governance risks, cost reduction, and regulatory hurdles are highlighted. The survey indicates that only a minority of companies have committed to comprehensive carbon emission reductions by 2050, with many still planning or not having a strategy for emission reduction. Furthermore, the Critical Mineral Exploration Tax Credit (CMETC) has boosted exploration activities but is seen as complex and limited in scope. Respondents call for broader and more innovative tax policies to encourage investment and development in the sector.

Global miners call on LME to introduce green premium for nickel (March 5, 2024, Source) — Global mining giants, including BHP Group (ASX: BHP | NYSE: BHP) and Wyloo Metals, have urged the London Metal Exchange (LME) to create a green premium for sustainably produced nickel amidst concerns over environmental damage caused by “dirty” nickel, particularly from Indonesia. Indonesia, a major player in the nickel industry, has been criticized for deforestation, pollution, and high carbon emissions due to its reliance on coal-fired power. The LME, however, responded that the market for green nickel isn’t yet large enough to support a dedicated futures contract. BHP and others argue for differentiating between green and dirty nickel, highlighting the environmental impact differences. The LME supports trading low carbon nickel but cites the need for more development in identifying a credible green premium. Meanwhile, Indonesia’s low-cost nickel production is poised to dominate the global market, raising concerns over environmental standards and the need for responsible sourcing guidelines that include emissions metrics.

Investor.News Critical Minerals Media Coverage:

• March 14, 2024 – The Australian Government Steps into the Critical Minerals Supply Chain Ring https://bit.ly/3Vm9NDR
• March 12, 2024 – The (Bidding?) War For the DRC https://bit.ly/4aaKMzO

Investor.News Critical Minerals Videos:

• March 14, 2024 – Neo Performance’s Rahim Suleman on being ‘the most vertically integrated rare earth magnetics company in the world.’ https://bit.ly/3PkS8IY
• March 14, 2024 – Darren Hazelwood on Panther Metals’ VMS Project Scale and the Graphite Potential Near Thunder Bay https://bit.ly/492OzOM
• March 14, 2024 – Codemge’s CEO on Leveraging Minas Gerais’ Position as Brazil’s Niobium Mining Powerhouse https://bit.ly/48Pfo8U
• March 13, 2024 – Chris Berlet on the benefit of MineralPrices’ real-time pricing information https://bit.ly/3TA1i6Q
• March 11, 2024 – Power Nickel’s Terry Lynch on “the least expensive high-grade nickel sulfide exploration play in the world” https://bit.ly/3VgWdBF
• March 11, 2024 – Tom Drivas Explores the Initial Rare Earth Mineral Resource Estimate from Appia’s PCH Ionic Adsorption Clay Project in Brazil https://bit.ly/3VdU9KL
• March 11, 2024 – Chad Clovis on Real Environmental Benefits through the Karbon-X Carbon Credit App https://bit.ly/3Tt6jy6
• March 11, 2024 – Stephen Burega on Romios Gold’s Recent Strides Forward in High-Grade Copper Exploration in Nevada https://bit.ly/4a9HA7E
• March 11, 2024 – Sean Cleary on Strategic’s plans to revitalize former producer of 10% of the world’s vanadium https://bit.ly/3IwVZP9

Critical Minerals IN8.Pro Member News Releases:

• March 14, 2024 – Technology Advancement: NEO Battery Expands Production Yield and Capacity with Manufacturing Innovation https://bit.ly/43f7Efj
• March 13, 2024 – Voyageur Achieves Milestone with Rain Cage Royalty Agreement for Sustainable Carbon Drug Development https://bit.ly/3TzarN0
• March 13, 2024 – First Phosphate and Groupe Goyette Sign MOU for Logistics Footprint at the Hebertville-Station Intermodal Facility in the Saguenay-Lac-St-Jean Region of Quebec, Canada https://bit.ly/3PlqXxL
• March 13, 2024 – Fathom Announces Completion of Drilling at Albert Lake Project and Commencement of Drilling at the Gochager Lake Project https://bit.ly/3wPQFnA
• March 12, 2024 – American Clean Resources Group Enters Well Water Purchase Agreement with Road and Highway Builders LLC https://bit.ly/3wOX2aT
• March 11, 2024 – Critical Metals PLC Appointment of Non-Executive Director https://bit.ly/43cATiI

Australia, often celebrated as the world’s quarry, finds itself at a critical juncture as the prices of iron ore, nickel, and lithium, three of its most significant exports, have plummeted. This decline has not only exposed the inherent vulnerabilities of relying heavily on these commodities but has also highlighted the country’s dependence on China, its largest buyer. This situation is further compounded by the realization that the wider global implications of such a downturn are largely overlooked by many in the field.

Jack Lifton, the co-founder of the Critical Minerals Institute (CMI), points out that the economic feasibility of mining and refining operations is predicated on the massive demand from major players. The recent challenges faced by Lynas Rare Earths Ltd.’s (ASX: LYC) Kalgoorlie ore processing plant exemplify the precarious nature of these operations. The plant, initially constructed to comply with Malaysian regulations against importing radioactive materials, now struggles with the fallout from BHP Group’s (ASX: BHP | NYSE: BHP) decision to shut down local nickel operations, a key source of sulphuric acid, due to dwindling demand.

The repercussions of these developments are far-reaching. The collapse of the nickel industry, for instance, has revealed a manipulation of market prices reminiscent of supermarket-style scandals, but on a much grander scale. This, coupled with China’s strategic dominance over the global supply chain for rare earth elements and other critical minerals, poses a significant threat not just to Australia but to the global balance of power in the minerals market.

China’s strategy has been multifaceted, involving not only the subsidization of production costs at every step but also a willingness to absorb the environmental costs associated with such operations. This approach has allowed China to assert near-monopolistic control over the processing of about 80% of the world’s rare earths, and critical components like lithium, gallium, and germanium. The implications of this dominance are profound, affecting everything from the global race to combat climate change to the strategic military balance between major world powers.

Australia’s response to this challenge has been twofold. On one hand, it has attempted to leverage its rich deposits of critical minerals by offering subsidies to mining and processing operations in a bid to reduce dependence on Chinese processing facilities. On the other hand, the Australian government has had to contend with the immediate economic fallout from the collapse of metal prices, including providing emergency corporate aid and grappling with the loss of thousands of jobs as companies reassess the viability of their operations.

The situation is further complicated by China’s apparent readiness to use its economic power to coerce or punish countries that challenge its interests, as seen in the imposition of trade restrictions and embargoes on Australian exports following diplomatic tensions.

As Australia navigates this precarious situation, several paths forward emerge. One involves underwriting the construction of national processing facilities to add value to its mineral exports, potentially offering a cleaner alternative to Chinese-processed materials. This approach, however, would require a significant shift from recent trends towards privatization and might necessitate substantial investment to make Australia a competitive player in the global market for processed minerals.

Ultimately, Australia’s challenge is not just about responding to immediate economic pressures but about rethinking its strategic position in a rapidly changing global market. The country’s ability to adapt to these changes, diversify its economic base, and negotiate the complex interplay of global trade and politics will determine its future role on the world stage.

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In a thought-provoking Investor.News interview hosted by the Critical Minerals Institute founder Tracy Weslosky, Jack Lifton and Constantine Karayannopoulos, two renowned figures in the rare earths market, share their insights on the sector’s current trends and future prospects. Constantine Karayannopoulos, reflecting on the state of the market, observes, “There is never a dull moment in the rare earths industry,” highlighting the ongoing slide in prices for critical rare earth elements like neodymium and praseodymium. He expresses a cautious outlook, noting, “I’m a little pessimistic about the near term… it’s a cyclical industry.”

Critical Minerals Institute (CMI) Co-Chair Jack Lifton adds: “The low prices may be here for a while because the principal producer in the world is China, and China’s having a very bad time economically right now.” He emphasizes the opportunities presented by the current market conditions for strategic investments, advising, “This is the ideal time for real mining and real processing companies to get into the game.”

Karayannopoulos also touches on the disconnection between market interest and actual market trends, suggesting, “There’s always a disconnect between reality versus expectation.” He elaborates on the nuanced dynamics within China, mentioning, “The Chinese consumer has not stopped buying, China grew at 5% last year… However, the main consumer of rare earths today, the magnet industry that feeds the electric vehicle production in China, it’s not growing as fast as people thought it was going to grow.”

Lifton further discusses the broader implications of supply and demand, cautioning, “As long as the supply is in excess, the prices are not going to go up.” He also highlights the strategic importance of investments in raw material sources and processing capabilities, particularly in light of China’s dominance in the market.

Through their conversation, Lifton and Karayannopoulos provide a nuanced analysis of the rare earths market, blending perspectives on economic trends, geopolitical strategies, and investment opportunities. To access the complete interview, click here