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 surging success of Vulcan Energy Resources Ltd. (ASX: VUL), backed by Gina Rinehart, in lithium production, signaling a significant advancement in battery technology. Additionally, we explore the implications of copper’s climb to a 2024 high, heralded by Citi analysts as the start of the metal’s second bull market this century, amidst concerns about sustainability and market dynamics. We also delve into the ramifications of Chinese car manufacturing in Italy on Stellantis and the challenges faced by Volkswagen amidst a resurgence in petrol car demand in Europe, among other crucial developments shaping the industry landscape.

This week’s TMR Report also highlights the strategic moves of influential figures like Gina Rinehart, whose investments in the U.S. rare earths sector and Brazil hint at potential industry mergers and reshaping of the global rare earths supply chain. Furthermore, we discuss the imperative for the United States to strengthen its commercial ties with African nations to secure key minerals, aiming to reduce dependency on China. Amidst fluctuating rare earths prices in China and U.S. efforts to bolster domestic mining projects, we explore the intersection of environmental concerns with mining practices, exemplified by Australian billionaire Andrew Forrest’s call for greener nickel production. Lastly, we examine Canada’s risk of losing its position as a major mining capital due to government opacity surrounding Chinese investments in the critical minerals sector, highlighting the broader implications of uncertain investment policies on the industry’s strategic positioning.

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Gina Rinehart-Backed Lithium Hopeful Surges After Demo Batch: (April 11, 2024, Source) — Vulcan Energy Resources Ltd. (ASX: VUL), an Australia-listed lithium developer, experienced a surge of nearly 40% in its stock value after announcing the successful production of a demo batch of lithium chloride using direct-extraction technology (DLE) at its demonstration plant in Landau, Germany. This marks a significant advancement in lithium production for batteries, showcasing the potential of DLE to streamline the production process. Vulcan, backed by Australia’s wealthiest individual Gina Rinehart, has established supply agreements with major European car manufacturers like Stellantis, Renault SA, and Volkswagen AG. The company’s achievement was hailed as a validation of Vulcan’s efforts and the viability of DLE in the lithium supply chain. Vulcan aims to commence commercial production in 2026, targeting an annual output sufficient to support half a million electric vehicles, while still seeking necessary funding. The project promises reduced carbon emissions by utilizing geothermal energy.

Copper prices climb to 2024 high as Citi calls the start of the metal’s second bull market this century: (April 10, 2024, Source) — Copper prices have surged to their highest levels since June 2022, with May delivery trading at $4.323 per pound in New York and three-month prices on the London Metal Exchange rising to $9,477 per metric ton. This increase reflects growing demand for copper, seen as an indicator of economic health and a vital component of the energy transition, including electric vehicles, power grids, and wind turbines. Citi analysts herald the start of copper’s second secular bull market of the century, predicting prices could average $10,000 per metric ton by year’s end and potentially rise to $15,000 in a bullish scenario. However, concerns exist about the sustainability of these price levels, with some analysts warning that high prices could dampen demand through substitution or demand destruction, emphasizing the self-regulating nature of commodity markets.

Chinese car manufacturing in Italy could force tough decisions, says Stellantis CEO: (April 10, 2024, Source) — Stellantis N.V. (NYSE: STLA) CEO Carlos Tavares warned of tough decisions, including potential plant closures, as Chinese car manufacturing in Italy could introduce new competition, notably from automakers like Chery Auto. The Italian government’s negotiations with Tesla Inc. (NASDAQ: TSLA) and Chinese companies aim to boost Italy’s automotive production. Tavares emphasized the pressure on Stellantis, Italy’s only major automaker, could lead to efforts to increase productivity to stay competitive, potentially affecting market share and necessitating a reduction in the number of plants. Despite rumors, Tavares confirmed Stellantis’s commitment to Italy, highlighting investments such as the extension of Fiat Panda’s production until 2030 and the inauguration of a facility for electrified transmissions at Mirafiori. He dismissed speculation about divesting from Italy as “fake news.”

Volkswagen electric car sales plunge as Europe returns to petrol: (April 10, 2024, Source) —  Volkswagen’s electric vehicle (EV) sales in Europe plummeted by nearly a quarter in the first quarter of the year, amid a resurgence in petrol car demand, driven by high inflation and rising energy costs. This decline contrasts with a modest 3% global dip in all-electric sales and a 4% rise in combustion engine vehicle sales. The shift comes as governments reevaluate EV subsidies and emissions targets, with the UK delaying its ban on new petrol and diesel sales from 2030 to 2035, and the EU considering allowances for synthetic fuels. This backdrop of diminishing government support and increased competition from more affordably priced Chinese EVs, such as those from BYD, has pressured Volkswagen’s sales. Despite these challenges, Volkswagen experienced a significant 91% surge in EV sales in China, underscoring the regional disparities in EV adoption trends. Other manufacturers like BMW and Tesla also report varying EV sales performance, highlighting the evolving and competitive landscape of the global electric vehicle market.

China’s Tianqi Lithium’s $4bn bet on Chile at risk of backfiring: (April 9, 2024, Source) — In 2018, Tianqi Lithium, a major Chinese lithium producer, invested $4 billion to acquire a significant stake in Chile’s SQM, a move aimed at securing a strong position in the global lithium market, essential for electric vehicles. This investment in the heart of the “lithium triangle” (Argentina, Bolivia, and Chile) now faces challenges due to Chile’s government seeking greater control over lithium resources, particularly in the Atacama Desert where SQM operates. SQM’s agreement with Codelco, a state-owned enterprise, to form a joint venture aligns with Chilean policies for public-private partnerships in strategic sectors, potentially diminishing Tianqi’s influence and future prospects in SQM’s lithium venture. This development is part of a broader trend where countries are reclaiming control over critical minerals for the green transition, affecting companies like Tianqi, whose profitability and market position are under pressure from changing regulations, market dynamics, and operational challenges, both in Chile and globally.

Rinehart’s MP Buy Could Trigger Rare Earths Mining Mega Merger: (April 9, 2024, Source) — Gina Rinehart, Australia’s wealthiest person and iron ore magnate, has made a significant move into the U.S. rare earths sector by acquiring a 5.3% stake in MP Materials Corp. (NYSE: MP), which owns the Mountain Pass mine in California. This purchase has led to a 20% increase in MP’s share price within five days. Rinehart’s investment extends beyond MP to a 10% stake in Arafura Rare Earths Limited (ASX: ARU), an Australian rare earth producer, and 5.8% in a Brazilian company. Amidst growing competition with China and threats to “weaponize” its dominance in rare earths essential for modern technologies, Rinehart’s actions hint at potential for a major merger, particularly between MP and Australia’s Lynas Rare Earths Ltd. (ASX: LYC), aiming to create a significant non-Chinese rare earth supply. This development could signal strategic shifts in global rare earths production, with potential large-scale industry consolidation on the horizon.

China’s EV export boom fuels surge in demand for new car-carrying ships: (April 9, 2024, Source) — Amidst a burgeoning demand for electric vehicles (EVs), Chinese automakers and shippers are investing heavily in a fleet expansion, ordering a record number of car-carrying ships. This surge places China on a trajectory to possess the world’s fourth-largest car-carrying fleet by 2028, ascending from its current eighth position. Major corporations like SAIC Motor, Chery Automobile, and EV titan BYD, along with shippers such as COSCO and China Merchants, are spearheading this initiative, accounting for a quarter of global orders. This influx primarily benefits Chinese shipyards, capturing 82% of the global orders. The expansion into foreign markets, buoyed by a cost-efficient supply chain, has been crucial for Chinese automakers facing domestic challenges like price competition and a slow economy. Notably, China has surpassed Japan as the premier auto exporter, with significant contributions from companies like BYD. However, this export growth has raised concerns in the U.S. and EU about market oversaturation with low-priced goods, though China rebuts, highlighting innovation and downplaying state support’s role.

US must boost Africa ties to secure key minerals, report says: (April 9, 2024, Source) — To secure vital minerals critical for sectors ranging from electric vehicle production to defense, the United States must strengthen its commercial relationships with African nations, a report from the United States Institute of Peace emphasizes. This is to reduce dependency on China, which currently dominates the supply of these critical minerals. The U.S.’s near-total reliance on foreign sources, especially China, for these materials poses significant economic and national security risks. The report highlights the lag of Western mining companies behind Chinese counterparts in tapping into Africa’s rich mineral resources. It suggests enhanced U.S. commercial diplomacy, particularly with leading mineral suppliers like the Democratic Republic of Congo and Zambia. Additionally, it points out the competition from Middle East firms and proposes measures like increasing project financing and reopening the U.S. consulate in Lubumbashi to facilitate U.S. investment. Despite challenges, the report argues for a more vigorous approach to match China’s influence in Africa’s mining sector.

Rare earths prices in China hit 7-week high on post-holiday restocking: (April 9, 2024, Source) — Rare earths prices in China, the world’s leading producer, reached a seven-week peak on April 8 due to increased post-holiday restocking, before slightly declining the following day. With China dominating 70% of mining and 90% of the refined rare earths market, notable increases were observed in praseodymium oxide and terbium oxide prices, highlighting the country’s significant influence on the market. The demand surge, particularly after the QingMing Festival, led to a depletion of in-plant stocks among magnetic materials producers, who then turned to the spot market for replenishment. Additionally, the use of ore cargoes as collateral by some to alleviate financial pressures contributed to the price hike. The start of the rainy season in Myanmar, a major supplier, is expected to reduce ore availability, potentially increasing market volatility as companies rely more on spot market purchases, impacting long-term contract stability. Consequently, shares in China Northern Rare Earth (Group) High-Tech saw a 4.3% increase.

Perpetua Resources gets nod to seek $1.8 bln US loan for antimony mine: (April 8, 2024, Source) — Perpetua Resources Corp. (NASDAQ: PPTA | TSX: PPTA) has received preliminary approval from the U.S. Export-Import Bank (EXIM) for a $1.8 billion loan to develop an antimony and gold mine in northern Idaho, aligning with efforts to reduce China’s dominance in critical minerals. This potential loan marks one of the largest U.S. investments in the mining sector, reflecting the Biden administration’s strategy of using federal funds to support projects that compete with Chinese firms. In addition to this loan, Perpetua will seek extra equity funding. The Stibnite mine aims to become the only U.S. source of antimony, vital for military hardware and electric vehicle batteries, while also harboring substantial gold reserves. This venture is part of a broader U.S. initiative to secure domestic supplies of essential minerals and counter China’s market influence.

Mining billionaire Forrest urges China to demand greener nickel: (April 7, 2024, Source) — Australian mining billionaire Andrew Forrest has publicly called for China to implement and enforce higher environmental standards within its global supply chains, especially focusing on nickel processing in Indonesia, citing severe environmental damage. In a Financial Times interview, Forrest, who is the chair and largest shareholder of Fortescue Ltd. (ASX: FMG), criticized the extraction of Indonesian nickel for its extensive environmental degradation and urged electric vehicle manufacturers to be cautious when sourcing nickel from Indonesia. Forrest highlighted that China’s increasing control over Indonesia’s nickel production, vital for electric car batteries and steelmaking, comes with significant environmental concerns, including deforestation, mining waste pollution, and high carbon emissions from coal power. Despite shutting down his nickel mines in Western Australia due to price drops influenced by Indonesian nickel, Forrest remains vocal about the need for a “green premium” for sustainably produced nickel and criticizes the lack of differentiation in the market. The call comes amid rising environmental scrutiny and the potential for market-driven adjustments to reflect the environmental cost of production.

Canada risks losing mining capital because of government opacity around Chinese investment in critical minerals sector: (April 5, 2024, Source) — The opacity of the Canadian government regarding Chinese investment in the critical minerals sector is leading to investor uncertainty and risking Canada’s position as a major capital source for mining. Despite Ottawa’s late 2022 announcement allowing Chinese investments only under “exceptional circumstances” without defining them, transactions continue, confusing the market. For instance, Shenghe Resources acquired a 10% stake in Vital Metals Ltd. (ASX: VML), owner of Canada’s only operating rare earths mine, even purchasing a significant stockpile of rare earths mined in Canada. Critics, including those from the Macdonald-Laurier Institute, find it problematic, especially given China’s dominance in the rare earths market. The unclear stance and handling of investments, such as the blocked financing deal for SRG Mining Inc. (TSXV: SRG)., reflect a broader uncertainty and potential discouragement of future critical minerals companies from basing in Canada, fearing the government’s unpredictable investment policies. This situation may drive new companies to other countries, impacting Canada’s mining capital and strategic positioning in critical minerals.

Investor.News Critical Minerals Videos:

• April 12, 2024 – Defense Metals Dr. Moreno on the Wicheeda Project Poised to Become North America’s Next Rare Earth Mine https://bit.ly/3TXs7kh

Critical Minerals IN8.Pro Member News Releases:

• April 10, 2024 – American Rare Earths’ Assay Results Expand Rare Earth Enrichment Within the Cowboy State Mine Area at Halleck Creek, Wyoming https://bit.ly/3JecWOT
• April 10, 2024 – Critical Metals PLC: Issue of Convertible Loan Notes and Corporate Update https://bit.ly/4aLZ75P
• April 10, 2024 – Mount Squires Project Option Agreement to unlock potential further rare earth supply https://bit.ly/440rco4
• April 09, 2024 – Pekuakamiulnuatsh First Nation and First Phosphate Announce Collaboration Agreement https://bit.ly/4d2nH4C

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.

The legacy carmakers and their supply base both face bankruptcy if they make the wrong decisions on entering the “transition to EVs” markets. This is because the OEM automotive industry is, along with semiconductor manufacturing, one of the most capital-intensive industries in the world. Just like with a 200,000 ton DWT ship, inertia being the problem on the one hand and prior deployment of massive amounts of capital being the issue on the other, the OEM automotive industry cannot change course in a short time, and so must be careful to choose the right path (allocation of capital) before starting the voyage.

The battery materials’ processing markets were surprised yesterday by an unexpected announcement from the UK’s most prominent technology metals’ processor, Johnson-Matthey Ltd. (JM), that it was withdrawing from the battery materials’ processing market due to its estimation that the return on capital from manufacturing lithium-ion battery cathodes would be too low to justify the allocation of capital required to do so. JM’s stated reason for this decision was that the battery materials’ business is becoming “commoditized,” so that JM’s hoped for competitive advantage based on its specialized cathode manufacturing technology would either not materialize or not be good enough to be competitive.

But, even if so, It is the timing of this announcement that seems puzzling.

Both CATL, China’s largest integrated battery manufacturer and Umicore, Europe’s largest battery materials processor have poor returns on capital in their respective battery business sectors, and this has been going on since both entered the battery business, so JM cannot have been surprised by this factor, and, in fact, should have taken it into account on day one of its foray into the battery materials’ business.

So, what’s it all about?

Large companies with either diversified products or vertical integration can distribute costs. Legacy OEM automotive EV makers, for example, like Germany’s Volkswagen, which had a 5 billion Euro profit last year, can afford to lose some money introducing its EVs to the market at a loss per vehicle, while it tests both market acceptance and the lowering of manufacturing costs due to scaling up production.

Let’s set aside my continuing accounting of battery raw materials’ resources as woefully insufficient to support a transition to EVs, and concentrate on the OEM automotive industry’s costs of bringing a new vehicle with any type of power train to market.

It is always multi-faceted crap shoot, and the history of government intervention in the car market is not one to inspire confidence.

Designing a new car and preparing to produce it costs billions of dollars and takes 3 to 6 years.

Government intervention in this market is always a compendium of what you can’t do, not what you can. The U.S. and EU government’s favorite regulatory intervention in the OEM automotive industry is the required “average miles-per-gallon” range for an OEM’s output. This “standard” was first introduced to reduce the emissions of hazardous gases and then added the reduction of the emission of particulates to its mandate. The current EV craze was actually the result of California’s 1990’s experimental legislation requiring the slow phase in of zero-emission vehicles. General Motors brought out a battery electric vehicle, the EV in the late 1990s, and Toyota introduced its “hybrid” Prius into the US (mainly California) market in 1997 to meet that mandate. The Prius, a hybrid, using, at first, a nickel-metal-hydride (the metal being a mix of rare earths) battery prospered. The EV with its lead-acid batteries and short range, 90 miles before needing a recharge, did not (It helped that GM lobbyists got California to suspend enforcement of the zero emissions mandate). GM had only leased its EVs; they were recalled and scrapped.

BEVs as a type went into hibernation until 2005 when Elon Musk decided that lithium-ion batteries were ready for prime time. Global Cooling became Global Warming and then Climate Change, and Musk’s struggling, capital devouring, OEM automotive venture, Tesla, kickstarted a revival of a serious EV industry, something last seen by the great grandfathers of Detroit’s, Wolfsburg’s, Paris’, and Tokyo’s car industry leaders when they decided that Thomas Edison’s Nickel-iron batteries were not practical for even their then short range motor cars. They knew that Rockefeller’s gasoline and kerosene distribution system in “filling stations” was far more practical than Edison’s expensive and hard to maintain DC generating stations except for trolley cars.

So, what’s this got to do with JM’s decision to pull out of the battery cathode business?

The answer is that JM has (correctly) concluded that the market, though large, is limited, and that very large profitable multi-product and/or vertically integrated or (whisper) state-supported companies are already driving prices down by competition to get market share.

JM has concluded, again correctly, that most of the cars and trucks manufactured for the next generation will use internal combustion engines and that its core automotive exhaust emission catalytic converter business based on its dominance in the processing and use of platinum group metals is where it has the best competitive advantage and sunk costs.

The reputed costs to JM associated with building a Poland sited cathode plant were twice the industry average.

JM was once also in the rare earth processing business, and it exited that in the 1980s when the first Molycorp was losing its dominance to Chinese low-cost competitors. That was a wise decision then, and getting out of the lithium-ion battery cathode business before getting into massive non-recoverable debt is also a wise decision.

Finally, I would like to repeat my prediction that since the OEM automotive assemblers do not understand or want to understand that the manufacturing of EVs using lithium-ion batteries is limited by the availability of lithium, there will be a cull. The survivors will be those OEMs that can balance the production of their allocation of (raw materials’ supply limited) EVs with ICE production profitably. BMW is my choice for the most likely survivor, because it has already announced that it will continue to produce a mix of powertrain choices in its vehicles. The rest, so far, are either going “all-electric” or eliminating ICE production and development. They chose poorly.

Nano One positioned for great things as the EV boom approaches

Superior battery technology continues to move towards significant breakthroughs such as the ‘million mile battery’ and ‘low cost/fast charging’ lithium ion batteries. These new advances will act as a huge boost for electric vehicle (EV) sales and allow the next generation of EVs to become super competitive with conventional cars. The million mile battery suddenly makes EVs the preferred choice for fleet operators (taxis, hire cars, deliveries, trucking etc) and the cheaper/fast charging batteries mean that by 2022 we should start to see EVs reach price parity with conventional cars. This will lead to a tsunami of EV sales.

All of this is only possible because of scientific breakthroughs by leading companies such as Nano One Materials Corp. (TSXV: NNO). Car and battery manufacturers are jumping onboard so that they can remain competitive in a rapidly changing auto world. Volkswagen’s partnership with Nano One is just one of many examples.

Understanding the massive changes happening in the auto industry helps explain why Nano One’s stock is up 145% over the past year as investors start to see their potential of the predicted US$23 billion cathode market opportunity. Specifically, Nano One is targeting the licensing opportunity to improve cathodes estimated at $1 billion in annual revenues by 2025.

Nano One’s mission is to establish its patented technology as a leading platform for the global production of a new generation of battery materials. Nano One has developed patented technology for the low-cost production of high-performance lithium ion battery cathode materials.

Nano One is targeting a potential $1b licensing opportunity in the $23b cathode market by 2025

Source

Investors might think that it is too late to buy into Nano One looking at recent stock price gains, but actually on the current market cap of C$239m if Nano One can deliver the potential revenues below as per their targets the stock will have appeared cheap. This is because they are targeting  about $70m a year in revenues by 2025 and profit margins are expected to be extremely high.

Nano One potential revenues by 2025

Source

Nano One’s patented cathode used for the ‘million mile battery’

Nano One announced in June this year the development of a coated, single crystal cathode material for lithium ion batteries that is providing up to 4 times improvement in longevity. The technology is applicable to all of Nano One’s cathode materials but is especially relevant to lithium nickel manganese cobalt oxide (NMC811). According to Nano One, “Increased durability is critical in enabling extended range, faster charging and even million mile batteries for electric vehicles.”

This breakthrough makes the ‘million mile battery’ within reach. Such a battery would mean EVs can last at least 4x longer than a conventional car. The implications are enormous. Fleet operators will be lining up to buy EVs with million mile batteries.

Nano One’s other key projects (LFP cathodes, and solid state battery cathodes)

Nano One has also made great progress in reducing the cost and improving the performance of Lithium Iron Phosphate (LFP) cathodes. Nano One has developed patented ‘one-pot cathode materials and production processes’ that reduces both the time and cost of LFP production. Working with partners such as Pulead who specialize in LFP cathode production opens up the door for licensing opportunities.

Nano One is also working on a breakthrough for the ‘holy grail’ of batteries – a solid state battery. Nano One’s patented cathode tests positively in solid state batteries with auto companies. Nano One says that their “cobalt free cathode reduces supply chain risk, increases power and enables fast charging,” and their “coated nanocrystal cathodes (single crystal) boost durability, capacity and charge rates.”

Nano One is partnered for success

Nano One is very well partnered into the EV/battery supply chain via partnerships with industry giants Volkswagen, Pulead, Saint-Gobain and other undisclosed global automotive interests. Added to this they have had the support of the Canadian government.

Closing remarks

With so many breakthroughs in one year it is little wonder that Nano One’s stock price is up 145%. Great management, great technology, and great partners are always a winning formula.

Nano One currently has a market cap of C$234m and looks poised for great things as the real EV boom is just about to begin.

Further learning

• Dan Blondal on Nano One’s breakthrough in lithium-ion cathode materials and the ‘million mile battery’ (video)