August 28, 2023 — Enjoying the new name for InvestorIntel, we are in the final countdown for a formal rebranding as InvestorNews. Also, in appreciating our Trending section, the #1 most read column right now is about Zentek Ltd. (NASDAQ: ZTEK | TSXV: ZEN), read: Revolutionary Aptamer-Based Pathogen Technology from Zentek Unveils Rapid and Inexpensive Pathogen Detection Capabilities.  

Also, started my morning with the commentator on the Australian Strategic Materials Ltd. (ASX: ASM) interview that the Critical Minerals Institute Co-Chairman Jack Lifton had with Rowena Smith that I would like to share with you. The commentator writes: “Wow that was a really great interview. I don’t understand why ASM isn’t on people’s radar and in particular Australia’s financial press has been missing in action. Hopefully, this interview will be the start of the re-rating of ASM’s achievements. When I talk to other investors in the REE space I haven’t had anyone spontaneously mention ASM.” This interview may be accessed on our Investor.Coffee YouTube channel and is titled — Redefining Rare Earths Supply Chain: A Conversation with ASM’s Rowena Smith.

Now onto the markets today, which according to the emails we receive daily have been summarized as follows — :

The markets have seen minimal fluctuations in recent times, with primary attention being centered on the impending economic data from Canada from this morning’s incoming sources. The anticipatory mood seems prevalent across global markets. Notably, U.S. stock index futures experienced a surge as crucial inflation and employment figures loom large. European technology stocks demonstrated an impressive performance, while in Asia, the Nikkei of Japan posted its most significant daily growth in two months.

In monetary matters, there has been a slide in the value of the U.S. dollar. This comes after Jerome Powell, the Federal Reserve Chair, indicated the potential for more rate hikes. Conversely, the euro, sensitive to Chinese market dynamics, enjoyed a slight uptick, following Beijing’s decision to reduce stamp duty on stock trades by half.

However, looming concerns persist in the global economic atmosphere. Record-high government debts combined with geopolitical strains, which jeopardize the cohesion of the global trade structure, paint a bleak picture. Furthermore, the continued lag in productivity gains hints at a future of sluggish growth, possibly hindering the developmental progress of certain nations.

This week’s spotlight will shine brightly on Canada’s Q2 GDP report, expected to unveil on Friday. Predictions from a Reuters survey of economists indicate a probable deceleration in economic expansion. Such a trend might make the Bank of Canada reconsider its stance on interest rate increments, even amidst mounting inflationary pressures.

In the automotive sector, Unifor, a Canadian union, recently announced that its members have greenlit strike mandates against the three primary Detroit automakers. This move empowers their negotiation teams to resort to job actions if deemed necessary to ensure equitable collective agreements.

In global stock market news, European futures, including the Euro STOXX 50 and German DAX, saw a rise in their early GMT trades. While Japanese shares rallied, concerns over a Chinese product ban impacted their tourism-related stocks adversely.

Oil prices, on the other hand, displayed marginal dips, attributed to apprehensions about China’s economic growth pace and potential U.S. rate hikes that might suppress fuel demand. The U.S. markets echoed a similar sentiment, with a modest rise in futures after Jerome Powell’s recent address, stressing the persistently high inflation rates.

From the corporate world, the UAW union at Ultium Cells (a collaboration between General Motors and LG Energy Solution in Ohio) publicized their members’ overwhelming approval of an interim pact that proposes a wage increase.

In other international news:

• China Evergrande Group, a globally renowned property developer, saw its shares plummet by almost 87%. This follows the company’s bankruptcy filing in the U.S. after a default last year and debt restructuring efforts earlier this year.
• A recent plane crash reportedly claimed the life of Yevgeny Prigozhin, the head of the Wagner mercenary group, confirmed by Russian genetic tests.
• The U.S. emphasizes the paramount importance of a stable economic bond with China, as iterated by U.S. Commerce Secretary, Gina Raimondo.
• Credit Suisse, now under UBS, reported a substantial loss in Q2 2023.
• BP underscores the necessity for investment in oil and gas production parallelly with efforts to expedite the energy transition to mitigate greenhouse gas emissions.
• Spanish investor Asterion clinches a deal with German utility Steag, directing the latter towards a greener future.

Stay tuned for more insights and updates on the global market here on InvestorNews!

InvestorTalk Disclaimer: The global financial spectrum is a vibrant mix of data, strategies, and forecasts. As the world watches, the financial domain remains ever-evolving and unpredictable, the global financial arena remains a complex interplay of a wide range of data and information. The InvestorTalk daily market update is an effort to organize the substantial accumulation of data sent to me and turn it into a summary of highlights intended for daily thought and collaboration as we move into our day. This editor is not an investment advisor and is neither offering buy or sell recommendations. The daily InvestorTalk series offers a data summary from information received by this editor. For more information or to send me more information, email [email protected]. Thank you.

South Korea, with its thriving tech giants and world-class OEM automotive industry, is transforming into a hub for the rare earth supply chain. While many look to China, the US, and Japan as key players in the rare earth game, Korea’s role is frequently overshadowed, despite its growing clout and demand.

Firstly, one must dispel misconceptions. South Korea is not a reservoir for rare earth elements. Nevertheless, its demand is robust due to its dynamic industrial base. Surprisingly to some, for example, Samsung Electronics Co., a Korean enterprise, surpasses even Apple Inc. (NASDAQ: AAPL) as the world’s premier cell phone manufacturer. Each phone requires a fraction of a gram of permanent magnet. Given their production volume, this accumulates to a significant demand. Furthermore, Korea boasts two of the globe’s top three battery producers: LG Energy Solution (LGES) and Samsung SDI Co., Ltd., subsidiaries of industrial giants, LG and Samsung, respectively.

Complementing this, Korea is home to Hyundai and Kia, renowned automotive brands that have gained a reputation for producing quality electric vehicles at competitive prices. The Hyundai Ioniq, for instance, was one of the initial electric cars introduced to the US market, utilizing permanent magnet motors and lithium-ion batteries. Notably, every raw material essential for these devices must be sourced from outside Korea.

This international sourcing is where companies like Australian Strategic Materials Limited (ASM) (ASX: ASM) come into the picture. Recently, ASM confirmed a five-year contract to provide USA Rare Earth, LLC with neodymium iron boron (NdFeB) magnet alloy from its Korean Metals Plant. This alloy, pivotal for creating permanent magnets in electric vehicles and wind turbines, underscores the intersecting interests of companies spanning continents.

Moreover, ASM isn’t limiting its partnerships to one US-based enterprise. They’ve also inked an agreement to sell a substantial 100 tonnes of this alloy to U.S.-based rare-earths magnet manufacturer, Noveon Magnetics Inc. In tandem, they’re also sourcing rare-earth oxides from Vietnam as feedstock for their Korean Metals Plant while concurrently developing a rare-earths mine in Dubbo, New South Wales, Australia.

From a personal vantage point, I recall my endeavors half a decade ago to bring LG Energy Systems into a partnership with the US Defence Department. The aim was for LG to manage rare earth permanent magnets for the Department of Defense. However, the looming threat of Chinese retaliation led to a withdrawal from LG, emphasizing the geopolitical sensitivity surrounding these minerals.

Now, representatives from Korean tech titans, including LG and Samsung, are traversing the globe in search of rare earths, with endeavors even in metallurgy and possibly magnet production. Additionally, ASM’s joint venture in Korea with Kiron — a domestic, Korean venture, funded by a significant Korean (rare earth permanent magnet end-user) corporation — underscores the collaborative nature of this industry.

To sum up, while the global discourse frequently orbits around China and the US, the Korean rare earth landscape is bustling. Their relentless quest to develop a comprehensive domestic supply chain for rare earth permanent magnets will invariably lead to a demand spike, which may catch many by surprise.

So, as the competition intensifies to secure these critical materials for the next generation of tech and transport, one thing’s clear: don’t underestimate Korea.

Back in early February, Canada’s Prime Minister Justin Trudeau stated that Canada and the United States can collaborate more closely on manufacturing electric vehicles (“EVs”) and on supplying critical minerals needed to make batteries for cars and other clean technologies. Canada’s mineral wealth “is part of why so many automakers are now looking at setting up their supply chains for zero-emission vehicles in Canada,” Trudeau said. I’ve noted several times before, including the Critical Materials series last July, that there are definitely tailwinds for domestic producers of just about anything that goes into carbon reduction technology.

It appears Prime Minister Trudeau might have known what was coming next because just 6 weeks later Volkswagen AG announced it had picked Canada for its first battery cell plant outside Europe. Some of the reasons given for this choice include:

• VW seeks to benefit from U.S. climate laws such as the Inflation Reduction Act (“IRA”) that require 50% of EV battery components be made in North America for vehicles to qualify for tax credits of up to $7,500.
• The Company declared it is working toward setting up regional supply chains in various jurisdictions, including North America, for EV production due to high transport and logistic costs, supply chain risks, and geopolitical tensions.
• Volkswagen AG stated back in December it was looking for sites for a Canadian plant after signing a Memorandum of Understanding (“MoU”) with Canada in August to secure access to key raw materials such as lithium, nickel, and cobalt for batteries.

Despite no dollar figures given for this facility, the Canadian federal innovation minister, Francois-Philippe Champagne, said it was “the largest single investment in the auto sector in the history of Canada”. Assuming Mr. Champagne was not embellishing for the press conference, that would suggest this facility based in the city of St. Thomas, around 195 km (120 miles) northeast of Detroit, will be even bigger than the Stellantis, LG Energy Solution (LGES) C$4.9 billion electric vehicle battery plant in Windsor, Ontario announced in March 2022. I would also assume that would mean the VW facility would have a larger output capacity than the stated annual production of 45 gigawatt-hours for the Windsor plant, but perhaps that’s not comparing apples to apples.

Ontario is a “hot spot” for EV battery investment

In fact, Ontario is becoming quite the hot spot for EV battery investment, both downstream and upstream. Along with the above-noted Volkswagen facility and the Stellantis/LGES joint venture, there have been other declarations in Ontario as well. In Eastern Ontario, not far from Kingston, Belgium-based Umicore announced a C$1.5 billion investment in an EV battery facility last July. The Umicore plant will combine cathode active materials and precursor material manufacturing for up to one million electric vehicles a year. Then just last month, Canadian-based Magna International, one of the world’s largest automotive suppliers, announced a C$471 million investment. The investment is comprised of a new C$265 million EV battery enclosure facility in Brampton along with the expansion of Magna’s existing automotive manufacturing facilities in Guelph, Windsor, Belleville, Newmarket, and Penetanguishene.

EV batteries require minerals

On the upstream side, last September we reported on the LG Energy Solution (“LGES”) announcement of agreements with Canadian miners to source materials required to make batteries for EVs. The first was Electra Battery Materials Corporation (TSXV: ELBM | NASDAQ: ELBM), a processor of battery materials, who is currently commissioning North America’s only cobalt sulfate refinery located in Ontario. Electra’s deal with LGES is a three-year agreement to supply LGES with 7,000 tonnes of battery-grade cobalt from 2023 to 2025. Within 24 hours, LGES also announced an MoU with Avalon Advanced Materials Inc. (TSX: AVL | OTCQB: AVLNF) to provide LGES with at least 50% of its planned initial lithium hydroxide production from its Thunder Bay facility (capacity of 15,000 tonnes per year).

Final thoughts

Over the past two years, the province of Ontario has attracted C$16.5 billion in investments by global automakers and suppliers of electric vehicle batteries and battery materials, excluding the latest Volkswagen announcement which we assume is at least C$5 billion. It appears the government’s 10-year plan to transform Ontario’s automotive supply chain, called Driving Prosperity, is having great success. That can only mean good things for the miners and explorers of the critical materials that will be required to supply all these new facilities. It should be a great space to be looking for opportunities as an investor.

As I was having my morning coffee today I came across some quite incredible news. The world’s largest lithium miner Albemarle stated that they expect there will be a massive shortage of lithium this decade. The report stated that “global lithium demand should hit 3.7 million tonnes by 2030.” Given that the total lithium market was only at about 370,000 tonnes pa in 2020 that would mean a 10x increase in demand this decade. Albemarle expects an 800,000 tonne lithium deficit by 2030 with lithium prices staying high. Albemarle CEO Norris stated: “Incentivizing industry to fill this gap requires strong long-term pricing”.

This got me thinking about who will be the next lithium miners to help meet this huge demand for lithium. Perhaps it will be Avalon Advanced Materials Inc. (TSX: AVL | OTCQB: AVLNF) (“Avalon”).

Avalon 100% owns the advanced stage Separation Rapids Lithium Project in Ontario, Canada as well as the Lilypad Cesium-Tantalum-Lithium Project also in Ontario.

Separation Rapids predominant lithium ore is petalite which contains 4.5% Li2O and is extremely pure. Petalite ore is already successfully being mined in Zimbabwe to supply the lithium ceramics industry. Avalon state on their website that they have “developed a process flowsheet to make lithium hydroxide from its petalite. The potential for production of high-grade lithium hydroxide (99.9%) was demonstrated through laboratory test work performed in 2015 and defined in a Preliminary Economic Assessment filed in 2016.”

Source: Avalon company presentation

Avalon continues to be somewhat under the radar despite having an MOU to supply LG Energy Solution Inc. (“LGES”) and plans to build a lithium hydroxide refinery in Thunder Bay, Ontario, Canada.

LGES is one of the leading global manufacturers of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems.

Avalon’s agreement with LGES is to supply battery-grade lithium hydroxide starting in 2025. That suggests that LGES has good confidence in Avalon’s potential to make it to production. The MOU would see Avalon commit, for five years initially, to provide LGES with at least 50% of its planned initial lithium hydroxide production from its Thunder Bay JV refinery (planned 20,000tpa capacity), with the potential to increase production as demand grows.

The Thunder Bay lithium refinery would be designed to accept lithium concentrate material from both Avalon’s Separation Rapids Project and other new projects in the region. In a January 10, 2023 regulatory filing Avalon stated:

“Essar failed to confirm their interest in finalizing an agreement with Avalon and the Company is now pursuing agreements with other potential investing partners including LG Energy Solution (“LGES”)……..This agreement with LGES (when it gets finalized) will involve providing initial financial and development support for building a lithium refinery in Thunder Bay, Ontario that will be designed to accept lithium minerals concentrates, not only from Avalon’s Separation Rapids Lithium Project north of Kenora, ON, but also from other aspiring new producers from the many lithium pegmatite resources that occur in northwestern Ontario. It will operate as a separate private business, called Avalon Lithium Inc., a newly established Avalon subsidiary in which LGES would potentially become a co- owner, when they finalize a formal agreement.”

Avalon also has an off-take agreement with a major non-Chinese international glass ceramic manufacturer to supply petalite concentrate from Separation Rapids for the glass-ceramics market.

The next steps for Avalon include a winter drilling campaign (deeper drilling at Separation Rapids main lithium pegmatite resource known as the Big Whopper), completing Feasibility Study-level cost estimates, project engineering and pilot plant work to optimize lithium battery materials process flowsheet & costs for the refinery and confirm the location for the refinery on a vacant industrial site in Thunder Bay. Also to complete environmental assessments and project permitting. Beyond that Avalon plan to begin small scale commercial operations with sales of petalite and mineral by-products while the new battery materials refinery is constructed ready for production in 2025/26, all going well.

Avalon Advanced Materials ticks many boxes for investors. Great lithium assets in Ontario Canada, supportive local, state and Federal governments, and a preliminary agreement to work with a multi-billion dollar company such LGES to establish a lithium supply chain in Canada. All at a time when it appears lithium will have a great decade. Execution risks to achieve lithium production remain high, but should de-risk with each successful step along the way. What’s not to like with Avalon Advanced Materials on a market cap of C$68 million.

InvestorIntel plans to have some interviews in 2023 with CEO Don Bubar to get an update on how the Company’s plans are progressing.

South Korean LG Energy Solution Inc. (LGES), a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems, recently announced three agreements in a span of 24 hours with Canadian miners to source materials required to make batteries for EVs. It appears the Inflation Reduction Act, which requires that 40% of battery components be sourced from factories in the U.S. or its free trade agreement partners, and that Chinese components and minerals be phased out beginning in 2024, has lit a fire under those who want to lead the charge to manufacture EV batteries for North American built vehicles. This could be a very positive trend for North American miners and material processors/recyclers.

One of the “winners” of the LGES battery supply deals was Electra Battery Materials Corporation (TSXV: ELBM | NASDAQ: ELBM). Electra is a processor of low-carbon, ethically-sourced battery materials that is currently commissioning North America’s only cobalt sulfate refinery. Electra is executing a multipronged strategy focused on onshoring the electric vehicle supply chain. Keys to its strategy are integrating black mass recycling and nickel sulfate production at Electra’s refinery located north of Toronto, advancing Iron Creek, its cobalt-copper exploration-stage project in the Idaho Cobalt Belt, and expanding cobalt sulfate processing into Bécancour, Quebec. We’ve made several references to the Bécancour area in previous InvestorIntel articles as it also becomes a rapidly emerging center for producing the advanced materials needed for lithium-ion batteries.

Electra’s binding term sheet with LGES is a three-year agreement to supply LGES with 7,000 tonnes of battery grade cobalt from 2023 to 2025. Electra will supply 1,000 tonnes of cobalt contained in a cobalt sulfate product in 2023 and a further 3,000 tonnes in each of 2024 and 2025 under an agreed pricing mechanism. Cobalt sulfate provided under the term of the contract with LGES will be sufficient to supply up to 1.5 million full electric vehicles. In addition to the supply agreement, Electra and LGES have agreed to cooperate and explore ways to advance opportunities across North America’s EV supply chain, including, but not limited to, securing of sustainable sources of raw materials. In my opinion, this marks validation of Electra’s cobalt sulfate refinery as this is an actual binding agreement, not just a LOI or MOU or some other wishy washy type of agreement that makes great press but essentially means very little, at least initially.

Building on the momentum of the commercial agreement with LGES, Electra provided a September 28 update on the commissioning of its cobalt refinery, confirming that it remains on track to meet project timelines, including the launch of a black mass recycling demonstration. The Company anticipates launching the battery recycling demonstration plant at the Ontario refinery site this fall. Revenue generated from black mass recycling activities will be accretive to results expected from the sale of cobalt sulfate that is anticipated beginning in spring 2023 when the refinery is commissioned. Possibly even more critical to their operations in today’s environment, Electra will use a hydrometallurgical process to treat black mass to recover contained lithium, nickel, cobalt, copper and graphite. This process has a low carbon footprint and produces stable non-acid generating tailings, thereby reducing environmental impacts while meeting or exceeding water discharge effluent criteria as stipulated by both federal and provincial regulations.

However, Electra isn’t simply a material processor/refiner/recycler, they also have the Iron Creek Project located within their Idaho property. Iron Creek is one of several cobalt-copper resources and prospects within the Idaho Cobalt Belt, a prospective mineralized system that contains the largest primary resources of cobalt in the United States, according to the U.S. Geological Survey. Last week the Company announced a new cobalt zone following the receipt of assay results from drilling at its Ruby prospect. The Ruby target is a new zone of cobalt mineralization located approximately 1.5 km southeast of Electra’s flagship Iron Creek deposit. This project has the potential to become an important source of cobalt in the U.S. and reduce North America’s reliance on foreign supply.

Electra finished Q2/22 with over C$40 million of cash, has completed 85 percent of all procurement and 90 percent of detailed engineering for its cobalt sulphate refinery, and has a binding cobalt offtake agreement with LG Energy Solution. That seems like a pretty good combination to successfully move forward in the race to be relevant in the battery materials business in North America. Is the C$135 million market cap a little rich at the moment? I guess it depends if they are successful at hitting their 5,000 tonnes per annum battery-grade cobalt goal in 2023. With spot prices over US$50,000/t, that suggests an annual revenue stream of US$275 million. I guess a lot depends on what kind of margins there are in cobalt refining.

Disclaimer: The editor of this post may or may not be a securities holder of any of the companies mentioned in this column. None of the companies discussed in the above feature have paid for this content. The writer of this article/post/column/opinion is not an investment advisor, and is neither licensed to nor is making any buy or sell recommendations. For more information about this or any other company, please review all public documents to conduct your own due diligence. To access the InvestorIntel.com Disclaimer, click here

When we started writing the Dean’s List series back in late July to highlight the burgeoning government support for critical minerals, supply chain and EV battery manufacturing, I had no idea how quickly that support would start turning into tangible deals for producer supply agreements. Sure, the first big facility announcement was way back in March with the Stellantis, LG Energy Solution C$4.9 billion electric vehicle battery plant in Windsor, Ontario, and there have been numerous deals announced in the interim both North and South of the 49th parallel for various multi-billion dollar facilities. But what happened on September 22 and 23 appears to have taken things to another level for the producers of the materials that go into EV batteries.

The aforementioned South Korean LG Energy Solution Inc. (LGES), a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems, announced three agreements in a span of 24 hours with Canadian miners to source materials required to make batteries for EVs. It appears the Inflation Reduction Act, which requires that 40% of battery components be sourced from factories in the U.S. or its free trade agreement partners and that Chinese components and minerals be phased out beginning in 2024, has lit a fire under those who want to lead the charge to manufacture EV batteries for North American built vehicles. Given where demand is forecast to go over the next 5 to 10 years, these three deals could just be the tip of the iceberg as other manufacturers follow suit.

The first “winner” of the LGES battery supply lottery was Electra Battery Materials Corporation (TSXV: ELBM | NASDAQ: ELBM). Electra is a processor of low-carbon, ethically-sourced battery materials who is currently commissioning North America’s only cobalt sulfate refinery. Their deal is a three-year agreement to supply LGES with 7,000 tonnes of battery grade cobalt from 2023 to 2025. Electra will supply 1,000 tonnes of cobalt contained in a cobalt sulfate product in 2023 and a further 3,000 tonnes in 2024 and 2025 under an agreed pricing mechanism. Cobalt sulfate provided under the term of the contract with LGES will be sufficient to supply up to 1.5 million full electric vehicles. In addition to the supply agreement, Electra and LGES have agreed to cooperate and explore ways to advance opportunities across North America’s EV supply chain, including, but not limited to, the securing of sustainable sources of raw materials.

Next up for LGES was a pair of lithium supply deals. We’ll explore the Avalon Advanced Materials Inc. (TSX: AVL |OTCQB: AVLNF) news first, mainly because it was the first company highlighted on the Dean’s List, so indulge me while I pat myself on the back. Avalon is a Canadian mineral development company specializing in sustainably produced materials for clean technology. Avalon is currently focusing on developing its Separation Rapids Lithium Project near Kenora, Ontario while continuing to advance other projects, including its 100%-owned Lilypad Cesium-Tantalum Lithium Project located near Fort Hope, Ontario. The Company signed a non-binding memorandum of understanding (MOU) with LGES to supply battery-grade lithium hydroxide starting in 2025. The MOU would see Avalon commit, for five years initially, to provide LGES with at least 50% of its planned initial lithium hydroxide production from its Thunder Bay facility (11,000 tons per year), with the potential to increase production as demand grows.

The second lithium, and third overall deal for LGES in a 24 hours span was with Snow Lake Resources Ltd. (NASDAQ: LITM). Snow Lake is committed to creating and operating a fully renewable and sustainable lithium mine that can deliver a completely traceable and carbon neutral product to the North American electric vehicle and battery markets. The Thompson Brothers Lithium Project now covers a 55,318-acre site and contains an identified-to-date 11.1 million metric tonnes indicated and inferred resource at 1% Li2O. Snow Lake signed a non-binding MOU with LGES to supply lithium hydroxide (20,000 tons per year) over a 10-year period once production starts in 2025. The deal between the two entities will see them collaborate to explore the opportunity to create one of Canada’s first lithium hydroxide processing plants in CentrePort, Winnipeg, Manitoba.

It should be noted that the Electra deal is a binding term sheet, while the other two are non-binding MOUs. Investors need to understand that there is a lot more certainty to the Electra deal than the other two which is likely why, as of yesterday’s close, Electra was still up 2% versus where it was trading before the LGES announcement while Avalon was down 6% and Snow Lake down 18% versus pre-LGES announcement trading. Not to take anything away from the non-binding deals, they are still very important and a positive sign for these companies, but the market isn’t very forgiving these days so there is definitely value in certainty. For Avalon that certainty is anticipated to come with a definitive supply agreement, which is intended to be finalized in no later than 6 weeks. I could not find confirmation of timing to firm up commitments in any of Snow Lake’s press releases.

In this InvestorIntel interview, Tracy Weslosky is joined by Critical Minerals’ industry expert and InvestorIntel Editor-in-Chief Jack Lifton to discuss the Ontario government’s recent announcement to make the largest private sector investment in Ontario history in a $5B Windsor battery plant.

Jack discusses the cyclic history of vertically integrated OEM automobile manufacturing in the US and Canada and its decline, due to globalization by the domestically owned US automotive manufacturing industry. Jack sees an imminent return to the industry of vertical integration, first in Canada’s automotive manufacturing center, Ontario. Jack explains how the Windsor battery plant in fact marks “the return of total vertical integration to North America” making Windsor, perhaps, as a symbol of Ontario’s natural critical resources and manufacturing capacities possibly “more important than Detroit in about 10 years in the North American OEM automotive industry.”

To access the complete episode of this Critical Minerals Corner discussion, click here