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 China’s plans for record cobalt purchases, Stellantis CEO’s warning on electric vehicle tariffs, and British Columbia’s push for increased critical minerals production. These stories, presented in chronological order, not by importance, provide a comprehensive view of the global trends and challenges shaping the sector.

This week’s TMR Report also highlights Europe’s new Critical Raw Materials Act aimed at reducing dependency on Chinese mineral supplies, the U.S.’s progress in establishing a domestic rare earths supply chain, and South Korea’s efforts to build lithium reserves to support its battery sector. Additionally, we cover Indonesia’s bid to attract Tesla for an EV battery plant and the increasing pressures on U.S. defense companies to source materials domestically. These developments underscore the strategic maneuvers and policy shifts essential for ensuring supply chain resilience and technological advancement in the critical minerals industry. To become a CMI member, click here.

China Plans Biggest Ever Cobalt Purchases For State Reserves: (May 23, 2024, Source) — China is set to make record cobalt purchases for its state reserves in 2024, buying around 15,000 tons of refined cobalt as prices hit their lowest since 2019. The National Food and Strategic Reserves Administration plans to begin purchases soon, with expected prices between 200,000 and 220,000 yuan per ton, equivalent to about $12.5 to $13.8 per pound. The metal, crucial for electric vehicle batteries and aerospace alloys, has fallen to five-year lows due to increased production in the Democratic Republic of Congo and Indonesia, where it’s a by-product of copper or nickel mining. Last year, China bought 8,700 tons of cobalt. Western nations view cobalt as critical, seeking to reduce reliance on China’s supply chain dominance and avoid future shortages. Earlier this month, a senior US official accused China’s CMOC Group Ltd. of using predatory tactics to depress prices by flooding the market with cobalt from DRC mines.

Stellantis CEO: electric vehicle tariffs are a trap: (May 22, 2024, Source) — Stellantis N.V. (NYSE: STLA) CEO Carlos Tavares warns of a fierce competition from Chinese electric vehicle (EV) manufacturers in Europe, highlighting potential job and production impacts. He criticizes the prospective tariffs on Chinese EVs as detrimental, predicting they would not prevent the need for Western automakers to restructure. Tavares argues that these tariffs could escalate costs and inflation in regions imposing them, adversely affecting sales and production. He emphasizes the harsh realities of competing with the cost-effective Chinese market, which could lead to significant industry overcapacity if not addressed. Furthermore, Tavares reveals Stellantis’ strategy to counter this threat by collaborating with Chinese firms, like their joint venture with Leapmotor, aiming to integrate into the competitive landscape rather than merely defend against it.

Feds lean on B.C. to produce more critical minerals: (May 22, 2024, Source) — British Columbia (B.C.) is pivotal in Canada’s strategy to produce 31 critical minerals essential for the nation’s economic future, including copper, zinc, and nickel. During a live event with Stuart McNish, experts highlighted B.C.’s significant mineral reserves and development potential. Michael Goehring of the Mining Association of B.C. stressed that B.C. supplies 80% of Canada’s copper and described the mining sector as a generational opportunity that could lead to extensive job creation. Seventeen critical mineral projects could potentially inject $36 billion into the economy over four years. However, lengthy permitting processes pose significant delays. The geopolitical landscape also adds urgency, as competition with countries like China, which dominates critical mineral supply chains, intensifies. B.C.’s government has responded by accelerating its critical mineral strategy, aiming to boost exploration and secure national security interests.

Can Europe secure its own critical raw materials?: (May 22, 2024, Source) — Europe’s new Critical Raw Materials Act (CRMA) aims to reduce dependency on Chinese mineral supplies by setting benchmarks for domestic sourcing and processing within the EU. AMG Lithium in Bitterfeld-Wolfen, Germany, exemplifies this effort, establishing Europe’s first lithium refinery to serve the battery industry independently. The CRMA mandates that by 2030, the EU must extract at least 10% of its raw materials domestically, and a significant portion of processing and recycling must also occur within the bloc. However, concerns persist about the feasibility of increasing mining outputs and the substantial investment needed, amidst fluctuating market prices. Analysts question if the allocated funds will suffice to meet the ambitious targets, especially as Europe seeks to strengthen its supply chains and support its green transition, while still engaging with Chinese investments.

US on track to establish domestic rare earths supply chain for defence, official says: (May 21, 2024, Source) — The United States is on track to establish a domestic rare earths supply chain by 2027 to support its defense needs, according to Assistant Secretary of Defense for Industrial Base Policy Laura Taylor-Kale. This initiative follows disruptions in global supply chains caused by COVID and aims to reduce dependence on China, the dominant producer. The US has designated Australia, Canada, and the UK as domestic sources under the Defense Production Act, actively investing in Australian rare earth projects. This year, the US extended up to $850 million in support to two Australian-listed rare earths projects. However, the market faces challenges with slumping prices and low profits due to increased Chinese exports. Industry leaders like Amanda Lacaze from Lynas Rare Earths Ltd. (ASX: LYC) emphasize the importance of growing the non-Chinese rare earths market to correct this imbalance.

How China Is Beating the West in the Minerals War: (May 21, 2024, Source) — In recent years, the West has attempted to diminish China’s dominance in the critical minerals market, essential for defense and green technologies. However, Chinese firms have only increased their hold, expanding operations and flooding the market with minerals like nickel and cobalt, essential for electric-vehicle batteries and other technologies. This surge in production has driven down prices and forced Western competitors out of the market. For instance, Chinese companies have significantly increased lithium production, causing delays and suspensions in American and Australian projects. Similarly, Chinese dominance in nickel has led to the shutdown of operations in Western countries like Canada and Australia, as these companies cannot compete with the low prices driven by Chinese oversupply. The situation is exacerbated by China’s strategic investments under the Belt and Road Initiative, which supports these industries with favorable financing, further entrenching their competitive advantage.

Copper Firm Drops China Financing Deal After Canadian Scrutiny: (May 21, 2024, Source) — Solaris Resources Inc., a Vancouver-based copper company, terminated a $130 million financing deal with China’s Zijin Mining Group following extensive Canadian scrutiny. Announced in January, the deal intended for Zijin to acquire a 15% stake in Solaris, but faced a prolonged review as Canada intensifies its regulation of foreign state-owned enterprises investing in its critical minerals sector. Amidst Canada’s stringent policies, which now only allow such investments under exceptional circumstances, Solaris expressed concerns about the undue delay affecting its market value and investor relations. The funding from Zijin was meant to support Solaris’ main copper project in Ecuador and would have positioned Zijin on Solaris’ board. Solaris CEO Daniel Earle criticized Canada’s minerals policy as counterproductive.

Jack Lifton Debunks Market Myth: Lower EV Demand Doesn’t Correlate with Permanent Magnet Demand: (May 21, 2024, Source) — Jack Lifton emphasizes that declining EV demand does not equate to reduced demand for rare earth permanent magnets, vital in the non-Chinese OEM automotive industry, particularly for hybrid powertrains. Despite varying trends in vehicle production, including hybrids alongside electric and internal combustion engines, the demand for these efficient magnets is expected to grow. Companies like Toyota project an equal distribution of EVs, hybrids, and traditional engines in future production, suggesting a continued reliance on these magnets. Meanwhile, U.S. policies and Chinese export restrictions pose significant challenges, with only limited U.S. capacity for rare earth processing and magnet production, primarily aimed at military needs. The sustainability of the U.S. automotive sector heavily depends on establishing a robust domestic supply chain for these critical components.

South Korea Said to Build Lithium Reserves to Aid Battery Sector: (May 20, 2024, Source) — South Korea is actively bolstering its lithium reserves to support its vital battery and automotive industries, amidst increasing geopolitical tensions and fluctuating market conditions. The country has initiated purchases of lithium carbonate from Chile this year through Korea Mine Rehabilitation and Mineral Resources Corp. (KOMIR). A significant budget of 233.1 billion won ($171 million) has been allocated for securing critical minerals, with a focus on lithium for electric vehicle (EV) batteries. This investment marks a 526% increase from the previous year and is slated for use in 2024. Amid a backdrop of declining lithium prices due to a sharp drop last year and an influx of new supplies reducing prices by over 80% in 2023, South Korea’s strategy aims to ensure competitiveness and meet U.S. Inflation Reduction Act requirements, reducing dependence on China for battery materials.

Indonesia minister says Musk to consider offer to build EV battery plant in country: (May 20, 2024, Source) — Indonesia’s Coordinating Minister of Investment announced that Elon Musk is considering an offer to build an electric vehicle (EV) battery plant in Indonesia following a meeting with President Joko Widodo. The discussion occurred in Bali, where both attended the World Water Forum. Minister Luhut Pandjaitan highlighted that Indonesia, rich in nickel—a critical component for EV batteries—is keen to develop its EV sector and has been attempting to attract Tesla for several years. In addition to the EV battery plant, Widodo proposed Musk invest in an AI center and for SpaceX to construct a launchpad on Biak Island in Papua. Furthermore, Musk recently launched SpaceX’s Starlink satellite internet service in Indonesia, aiming to enhance connectivity, particularly in remote and underdeveloped regions.

Made in the USA: Defense companies tense as Congress pressures them to buy domestic: (May 17, 2024, Source) — The 2025 defense authorization act draft is raising concerns among U.S. defense companies due to its emphasis on domestic sourcing of critical materials, previously sourced notably from China. Lawmakers are pressing for the utilization of domestic resources, particularly for materials essential in military technologies like lithium-ion batteries and rare-earth elements. This shift is prompted by strategic considerations and the recent surge in imports from China, which increased from $2 billion in 2020 to nearly $12 billion in lithium-ion batteries alone by 2023. Despite these pressures, defense industries face challenges due to the lack of additional funding for domestic sourcing, leading to potential increased costs for taxpayers. The draft bill encourages the Pentagon to develop and conserve domestic sources more aggressively and strategize for national emergencies. However, industry leaders, including Eric Fanning of the Aerospace Industries Association, caution that such significant changes require time and financial investment, suggesting a need for supportive public-private partnerships.

Investor.News Critical Minerals Media Coverage:

• May 22, 2024 – The Critical Minerals Institute Masterclass: Brazil’s Ionic Clays and Their Impact on the Global Rare Earth Supply Chain https://bit.ly/4bLn3Ha
• May 21, 2024 – Jack Lifton Debunks Market Myth: Lower EV Demand Doesn’t Correlate with Permanent Magnet Demand https://bit.ly/4aw5Ikk
• May 21, 2024 – Investor.Coffee (05.21.2024): Investors Brace for Significant Economic Updates https://bit.ly/3Vbt1vD
• May 19, 2024 – Political Instability and Investor Reassurance: The Recent Attack in the DRC https://bit.ly/3WNAn9H

Investor.News Critical Minerals Videos:

• May 23, 2024 – Power Nickel’s Terry Lynch on the Strategic Advancements and High-Grade Discoveries that Propel the Nisk Project Forward https://bit.ly/3wCCQJD

Critical Minerals IN8.Pro Member News Releases:

• May 24, 2024 – Obonga: High Resolution Magnetic Geophysics Survey https://bit.ly/4bVdMMV
• May 23, 2024 – Elcora Announces Share Consolidation https://bit.ly/3UNai7W
• May 23, 2024 – Panther Metals PLC Placing https://bit.ly/44VKbAq
• May 23, 2024 – Environmental Permitting update for Caldeira Rare Earth Project in Minas Gerais https://bit.ly/3KbMOEC
• May 23, 2024 – Zentek and DCL Supply Ltd. Sign Distribution Agreement for ZenGUARD Enhanced Air Filters https://bit.ly/4dQGsZ6
• May 22, 2024 – Appia Announces Significant Results from Two Additional Exploration New Targets Electra and Maia at PCH Project https://bit.ly/3US2phR
• May 21, 2024 – Investor Presentation via Investor Meet Company https://bit.ly/3URRg0f
• May 21, 2024 – Power Nickel’s Lion Discovery Makes an Enormous Roar – 15.4 Metres of Over 9.5% Copper Equivalent https://bit.ly/3QSjxme

In a strategic move to secure critical raw materials essential for the energy transition, France, Germany, and Italy have collectively announced national investment plans amounting to €2.5 billion during the EIT Critical Raw Materials Summit 2024 held in Brussels. This substantial investment underscores the urgency and importance of developing a robust critical raw materials value chain within the European Union.

The Raw Materials Funds, initiated by these three major EU economies, aim to be operational before the summer break. The initiative seeks to attract private investment to match public funding, ensuring a balanced and well-funded approach to developing the critical raw materials sector. This collaborative effort is designed to finance domestic mining operations, processing, and recycling activities, thus securing a stable supply of essential minerals for the EU. A similar theme will be the topic at the upcoming Critical Minerals Institute Summit III in Toronto, on August 21-22, 2024, to register, click here

The focus of these investments will be on over 30 critical minerals identified under the EU’s Critical Raw Materials Act (CRMA). Among these, lithium, copper, battery metals, and rare earths for the aerospace and defense industries are being prioritized. The objective is to ensure that Europe can sustain its industrial and technological advancements without relying excessively on external sources for these vital materials.

Benjamin Gallezot, an official within the French Prime Minister’s office, announced that the French government is providing €500 million to its national minerals fund. This fund is managed in collaboration with Infravia Capital Partners, a private investment firm, with the ultimate goal of raising €2 billion. Gallezot emphasized that the fund would cover the entire value chain—from mining and processing to recycling—and would take minority stakes in projects run by industry operators. The investment strategy and objectives will be defined jointly with the French government, ensuring alignment with national priorities.

Italy, through its Ministry of Enterprises and Made in Italy, has established the “Made in Italy” fund with an initial government investment of €1 billion. Alberto Castronovo highlighted that this fund, designed to support the national strategic supply chain in line with the CRMA, aims to double its value through private investments. The focus is on equity investments in projects that will advance the energy transition process and promote circular economy models. This initiative reflects Italy’s commitment to accelerating its industrial transformation and reducing dependency on imported raw materials.

Germany has allocated €1 billion to be managed by the KfW Development Bank. Jan Klasen, KfW’s director, stressed the importance of equity in developing a market strategy and ensuring a secure supply of raw materials into Europe, particularly Germany. The German approach involves setting up a government-led “raw materials committee” to negotiate and approve projects and commitments. This structured approach ensures that investments are strategically aligned and effectively managed.

Jack Lifton, Co-Chair of the Critical Minerals Institute (CMI), highlighted a significant gap in the government’s approach, stating, “The government lacks subject matter expertise and only consults with itself and friendly paid academics when seeking information. Experiential knowledge is never considered, as those who actually work in the field are often overlooked. Consequently, the government fails to understand that the mining supply chain begins with exploration, not with producing mines. The critical mineral supply chain starts with exploration.”

CMI Board Member Peter Clausi echoed Lifton’s concerns, adding, “Government investments in mining exploration have been far too conservative. In fact, I can’t recall any significant investments in actual exploration. Governments are willing to invest in production, less so in development, and hardly at all in exploration. If governments are serious about supporting battery manufacturers, the math and laws of statistics demand investments in exploration.”

When asked about the potential competition among the three national funds, representatives from France, Germany, and Italy unanimously rejected the notion. Gallezot from France stated, “The world of mining is very big, there are huge investments to do. We can co-invest, and we need all that kind of investment. It’s a good thing to have all these governments developing investments.” Castronovo from Italy echoed this sentiment, emphasizing the spirit of collaboration and alignment among the three nations. The collective efforts of France, Germany, and Italy to secure critical raw materials through significant public and private investments highlight a strategic and collaborative approach to achieving energy independence and industrial resilience. By focusing on the entire value chain and prioritizing essential minerals, these initiatives aim to position the EU as a leader in the sustainable and strategic use of raw materials, ensuring a competitive edge in the global market.

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

Key highlights in this Technology Metals Report includes Tesla’s impressive Q4 delivery record, overshadowed by BYD’s surge as the top EV maker, underscoring the intensifying competition in the electric vehicle market. Energy Fuels Inc. has made significant strides, first by entering into an MOU with Astron Corporation to bolster the U.S. rare earths supply, and then by expanding its uranium production in response to favorable market conditions. Nio Inc. has made a technological leap with its innovative EV battery, boasting a 1,000km range, while global trends in the critical minerals and EV market show shifts influenced by economic and political developments. Notably, Codelco and SQM’s new lithium venture in Chile represents a strategic move in the lithium market. The impact of China’s rare earths export ban stands as a significant moment, compelling the U.S. to foster technological self-reliance. The landmark merger between Allkem and Livent to form Arcadium Lithium marks a major consolidation in the lithium industry. Atomionics’ innovative use of AI and gravity in mining exploration showcases a technological breakthrough. The EU’s ambitious goals for critical minerals, despite challenges, indicate a strong commitment to securing essential resources for its green transition. Lastly, KoBold Metals’ ambitious global lithium exploration, backed by industry giants, highlights the growing importance of lithium in the clean energy sector.

The 10-stories selected for this edition of the TMR with source links to source stories for this fast-paced sector are listed chronologically for your ease and review.

Tesla delivers record Q4 cars, but China’s BYD steals top EV spot (January 3, 2024, Source) — In the fiercely competitive electric vehicle (EV) market, Tesla Inc. (NASDAQ: TSLA) achieved a significant milestone by delivering a record 484,507 vehicles in the fourth quarter of 2023, surpassing market expectations and fulfilling its annual target. Despite this success, Tesla was eclipsed by China’s BYD in terms of sales volume, losing its position as the leading EV manufacturer. BYD, backed by Warren Buffett, delivered 526,409 vehicles, primarily in China, indicating a consumer preference for more affordable models in an economy burdened by high interest rates. Although Tesla’s aggressive sales strategies led to a notable 11% growth over the previous quarter and a total production of 1.85 million units in 2023, it fell short of CEO Elon Musk’s ambitious target of 2 million. The company’s stock remained stable amidst a generally declining market. Meanwhile, BYD’s strategy of price cuts appears to be paying off, gaining market share despite potential impacts on profit margins. Tesla, in a bid to boost sales, offered discounts and incentives, such as six months of free fast charging for deliveries made by the end of December. This strategy was partly in response to some models of its Model 3 sedan losing U.S. federal tax credits in 2024. Tesla’s delivery performance stands out in comparison to domestic U.S. car companies, but it is also facing challenges like regulatory scrutiny over its self-driving technology and the need to adapt to changing tax credit policies.

Energy Fuels’ Strategic MOU with Astron: Shaping the Future of the U.S. Rare Earths Supply Chain (December 30, 2023, Source) — Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR) has recently entered into a significant Memorandum of Understanding (MOU) with Astron Corporation Ltd. to jointly develop the Donald Rare Earth and Mineral Sands Project in Victoria, Australia. This collaboration, announced on December 27, 2023, marks a crucial step in establishing a U.S.-focused rare earths supply chain, vital for meeting future national needs. The project will provide Energy Fuels with 7,000 to 14,000 metric tons of rare earth concentrate annually from the Donald deposit, processed at their White Mesa Mill in Utah. This arrangement not only utilizes the mill’s capacity to manage radioactive elements but also supports the production of critical minerals like uranium. The project is set to initially produce 800 – 1,000 metric tons of Neodymium-Praseodymium (NdPr) oxide by Q1 2024, with prospects for expansion. This development is strategically important in light of the U.S. government’s impending policy to restrict critical minerals sourced from Foreign Entities of Concern, effective from 2025. By fostering a sustainable, competitive, and independent supply chain, Energy Fuels’ initiative is poised to significantly impact the electric vehicle and clean energy sectors in the U.S., reducing dependency on foreign sources, especially China, and bolstering national security and technological advancement.

A Chinese EV company developed a battery with a 1,000km range — and its CEO tested it out on a 14-hour livestream (December 29, 2023, Source) — Chinese electric vehicle (EV) company Nio Inc., often compared to Tesla, recently showcased a groundbreaking development in EV technology by introducing a battery with an impressive 1,000km range. The company’s CEO, William Li, widely regarded as China’s answer to Elon Musk, embarked on a 14-hour live-streamed journey covering 1,044km from Shanghai to Xiamen to demonstrate the battery’s capabilities. Despite challenging weather conditions, Li’s Nio ET7, powered by the company’s new 150 kWh battery with the highest energy density for a mass-produced EV battery, completed the trip with 3% charge remaining. Scheduled for mass production in April 2024, these batteries, though costly at around $42,100, represent a significant advancement in EV technology. Nio’s unique business model allows customers to buy cars without a battery, offering a subscription for battery swaps at over 2,000 stations across China. Despite financial challenges and each car resulting in a $12,000 loss for Nio, this strategy has elevated Li’s stature, drawing parallels with Tesla’s Elon Musk. Li further showcased Nio’s technological prowess at the annual “Nio Day,” revealing the new ET9 flagship to thousands of Nio enthusiasts.

The Critical Minerals Institute Report (12.27.2023): Politics Driving Marketable Commodities into 2024 (December 27, 2023, Source) — The December 2023 Critical Minerals Institute report highlights key global economic and political developments influencing the critical minerals and electric vehicle (EV) markets. U.S. inflation decreases and potential interest rate cuts in 2024 have positively impacted equity markets, while China’s anticipated economic recovery bodes well for commodity sectors. The EV market is experiencing significant growth, particularly in China, despite challenges from U.S. and EU policies aiming to reduce dependency on foreign entities. The U.S. Department of Energy’s proposed FEOC guidelines and the EU’s Critical Raw Materials Act reflect a strategic shift towards stabilizing and localizing critical minerals supply chains. The report also notes significant fluctuations in the lithium market, with expectations of a bottom forming soon, and discusses the broader market dynamics of other critical minerals like cobalt, graphite, nickel, and manganese, in the context of a global economic slowdown. The performance of uranium in 2023 and the potential impact of lower interest rates in 2024 on the global economy and critical minerals demand are key areas of focus.

Chile’s Codelco to control new lithium venture with miner SQM (December 27, 2023, Source) — Chile’s state-owned copper miner, Codelco, has entered into a significant partnership with mining company Sociedad Química y Minera de Chile S.A. (“SQM”) (NYSE: SQM), gaining majority control in a new lithium venture. This move aligns with President Gabriel Boric’s directive for greater government involvement in lithium production. Chile, holding the title of the world’s second-largest lithium producer, aims to revitalize its market share, which is at risk of declining due to aging mining projects and increasing global competition. The deal, marking a pivotal step in Boric’s national lithium strategy, mandates public-private partnerships for all lithium projects. Set to start in January 2025, Codelco will take over SQM’s existing contracts and collaborate on increasing lithium production in the Atacama Desert. This partnership is not only a strategic move to stabilize SQM’s market position but also sets a precedent for future lithium contracts in Chile, potentially reshaping the country’s role in the global lithium market.

Global Rare Earths Market Heats Up as China Implements Export Ban (December 21, 2023, Source) — The recent ban by China on the export of rare earth processing technology represents a pivotal moment in the global rare earths market, particularly impacting the strategic metals sector. This ban, covering technology for extracting, separating, and producing rare earth metals and alloys, along with some magnet production technologies, has significant implications for industries like electronics, clean energy, and defense. Experts from the Critical Minerals Institute, including Melissa Sanderson and Peyton Jackson, highlight the necessity for the United States to proactively respond by investing in both green technologies, such as bio-extraction, and traditional processing methods. They emphasize the risks of over-dependence on other nations and the importance of developing technological self-reliance. The U.S. government’s funding of Lynas Rare Earths Ltd. (ASX: LYC) and Energy Fuels Inc.’s (NYSE American: UUUU | TSX: EFR) advanced solvent extraction system exemplifies a shift towards addressing these challenges through domestic initiatives. This strategic move is not only a reaction to China’s export ban but also a step towards ensuring a more sustainable and secure future in the critical minerals sector.

Allkem shareholders approve $10.6 billion Livent lithium merger (December 19, 2023, Source) — Australian lithium producer Allkem Limited (ASX: AKE | TSX: AKE) and U.S. company Livent Corporation (NYSE: LTHM) have agreed on a significant $10.6 billion merger, marking a major move in the lithium industry. This decision, approved by 72% of Allkem’s voting shareholders, will result in the formation of Arcadian Lithium PLC (NYSE: ALTM | ASX: LTM), a formidable entity in the global lithium market. The merger, which has received all necessary regulatory approvals, positions Arcadium Lithium as one of the world’s largest lithium companies, with operations spanning Australia, Argentina, and Canada. The new company will be integral in supplying lithium, a critical component for electric vehicle batteries, to various battery manufacturers. Under the terms of the deal, Allkem shareholders will exchange their shares on a one-for-one basis for shares in Arcadium Lithium, owning 56% of the new company, while Livent shareholders will receive 2.406 shares in Arcadium for each of their shares. Livent CEO Paul Graves is set to lead the new company, which will be the world’s third-largest lithium producer. The merger comes amidst a surge in dealmaking activity in the lithium sector and is recommended by independent financial advisors and proxy firms. Additionally, Livent plans to expand its operations in Western Australia’s prominent lithium districts.

Singapore’s Atomionics taps gravity, AI in hunt for critical minerals (December 19, 2023, Source) — Singapore-based startup Atomionics is transforming the mineral exploration industry with its innovative technology, Gravio, which combines gravity detection and artificial intelligence. This “virtual drill” technique offers a more precise and efficient method for locating ore bodies of critical minerals like copper, nickel, and zinc. Atomionics has already engaged with three major mining companies and is implementing its technology in Australia and the U.S. The technology’s real-time data processing significantly accelerates the task of defining ore bodies, offering a cost-effective alternative to traditional exploration methods. The ability to build an accurate virtual picture of mineral deposits before physical drilling can greatly reduce costs, as exploratory drilling is expensive and often misses the target. Atomionics aims to decrease these unsuccessful attempts by at least half. This innovative approach holds the potential to be a game-changer in the mineral exploration sector, presenting a low-cost alternative to traditional methods and contributing to the energy transition.

EU sets critical mineral goals, but faces struggle to hit them (December 18, 2023, Source) —  The European Union (EU) has ambitious targets for securing critical minerals essential for its green transition, as outlined in the Critical Raw Materials Act (CRMA), which aims to mine, recycle, and process significant portions of its annual needs for key materials like lithium and cobalt by 2030. These efforts are crucial for manufacturing clean technology products and reducing dependence on China, the dominant player in global mineral processing. However, the EU faces considerable challenges, including funding shortages, high energy costs, local opposition, and the need to expedite project permits. Additionally, the EU’s efforts are comparatively underfunded compared to massive investments in green subsidies by countries like the U.S. The situation is further complicated by higher EU energy costs leading to reduced metal production and delays in mining projects in Portugal and Serbia. Despite these hurdles, there are positive signs, such as potential projects meeting EU supply needs and innovations to minimize material use. The EU also seeks to diversify imports and forge global partnerships, aiming to position itself as a clean tech leader by focusing on high-value manufacturing and relying on reliable allies for mineral sourcing.

Billionaire-backed KoBold Metals widens lithium hunt across four continents (December 14, 2023, Source) — KoBold Metals, a California-based startup financially backed by prominent billionaires including Bill Gates and Jeff Bezos, is broadening its search for lithium, a crucial component in the clean energy and electric vehicle sectors, across four continents. Utilizing advanced artificial intelligence technology, CEO Kurt House announced plans to explore for lithium in regions such as South Korea, Quebec, the United States, Australia, and Africa, with specific emphasis on Namibia and the Democratic Republic of Congo. Previously focused on nickel and copper, with successful ventures in Quebec and Zambia, KoBold is now transitioning to include lithium in its mining portfolio. This strategic move aligns with their long-term goal to become the leading supplier of critical metals within 10 to 15 years. The startup, supported by Breakthrough Energy Ventures, collaborates with major players like BHP Group and Rio Tinto on projects in Australia and Canada. This expansion reflects KoBold’s ambition to fill the exploration void left by larger mining firms, which have recently prioritized operational efficiency and shareholder returns over new mineral discoveries.

InvestorNews Critical Minerals Media Coverage:

• January 3, 2024 – Rare earths company stock price has had a ‘meteoric’ rise of over 21x the past 15 months https://bit.ly/3vo6Xn3
• December 29, 2023 – Energy Fuels announces an MOU for a $122M investment in Astron that will supply a “new U.S.-based supply chain for decades” https://bit.ly/3tzBfm9
• December 29, 2023 – Hallgarten Initiates Coverage of Edison Lithium: Pivoting to Sodium-Ion Battery Technology https://bit.ly/3tG08wq
• December 27, 2023 – The Critical Minerals Institute Report (12.27.2023): Politics Driving Marketable Commodities into 2024 https://bit.ly/48sqnVU
• December 21, 2023 – Global Rare Earths Market Heats Up as China Implements Export Ban https://bit.ly/3TAClsv
• December 21, 2023 – Setback for U.S. Rare Earth Industry: China Tightens Export Laws on Key Technologies, Impeding American Efforts to Gain Independence Despite Financial Incentives https://bit.ly/4aGvQdQ
• December 20, 2023 – An update on the graphite sector and what to expect in 2024 and beyond https://bit.ly/3v8xLHG
• December 19, 2023 – Australia updates their Critical Minerals List and Adds a second, introducing the Australian Strategic Materials List https://bit.ly/3RQx7aG

InvestorNews Critical Minerals Videos:

• December 30, 2023 – Jack Lifton with Mark Chalmers on Energy Fuels Rare Earth Deal and Increasing US Uranium Production https://bit.ly/3TM5wsK
• December 30, 2023 – Mark Chalmers of Energy Fuels Discusses Increasing Uranium Production in the United States https://bit.ly/3TDPH7k
• December 30, 2023 – Energy Fuels’ Strategic MOU with Astron: Shaping the Future of the U.S. Rare Earths Supply Chain https://bit.ly/41PPujp
• December 18, 2023 – Ucore’s Strategic Leap: Pat Ryan Discusses the First Mover Advantage in Rare Earths Processing at Louisiana’s Strategic Metals Complex https://bit.ly/3GKa2jL

Critical Minerals IN8.Pro Member News Releases:

• January 4, 2024 – Ucore Acquires Alexandria, Louisiana, Facility for Rare Earth Element Processing Plant https://bit.ly/3RJCQOs
• January 2, 2024 – Panther Metals PLC Corporate Summary: Positioned to Succeed https://bit.ly/3tDKSQI
• January 2, 2024 – First Phosphate Closes Second Tranche of Oversubscribed Private Placement for Total Current Financing of $7.5 Million https://bit.ly/48jDCbP
• December 29, 2023 – Panther Metals PLC: Obonga Project Awkward East Claim Purchase Agreement https://bit.ly/3NKBeTr
• December 28, 2023 – Appia Rare Earths & Uranium – A Year in Review https://bit.ly/48xo3gh
• December 28, 2023 – Kraken Energy Receives Permit to Resume Phase I Drill Program at Harts Point and Provides Corporate Update https://bit.ly/48pALxM
• December 27, 2023 – Energy Fuels Enters into MOU to Secure Near-Term, Large-Scale Australian Source of Rare Earth Minerals to Supply New U.S.-Based Supply Chain for Decades https://bit.ly/47lDF5v
• December 27, 2023 – Ucore Comments on China’s Ban on the Export of Rare Earth Technology https://bit.ly/3RYiimD
• December 27, 2023 – Appia Announces Closing of Non-Brokered Flow-Through Private Placement https://bit.ly/41EDIbJ
• December 27, 2023 – Defense Metals Completes Geotechnical Field Data Collection for Wicheeda Rare Earth Element Project Preliminary Feasibility Study https://bit.ly/3RGLehB
• December 27, 2023 – F3 to Spend $16 Million on Drilling at PLN https://bit.ly/4aCQwDc
• December 22, 2023 – First Phosphate Announces Closing of Initial Tranche of Private Placement Financing Along with Date of Second Tranche Closing https://bit.ly/48LgHWR
• December 22, 2023 – Ucore Announces Extension of Debt https://bit.ly/3S7KAev
• December 22, 2023 – Fathom Nickel Announces the Closing of the First Tranche of Private Placement https://bit.ly/3S6aCyF
• December 21, 2023 – Imperial Mining Closes $1M Critical Minerals Flow-Through Private Placement https://bit.ly/4aEEsSh
• December 21, 2023 – Western Uranium & Vanadium Provides Market and Company Updates https://bit.ly/3tyzFAP
• December 21, 2023 – Ucore Completes RapidSX(TM) Demo Plant Commissioning – Begins US Department of Defense Demonstration Program https://bit.ly/3tjI4Iz
• December 21, 2023 – In Response to Surging Prices, Supportive Government Policies, and a Domestic Focus on Security of Supply, Energy Fuels Has Commenced Production at Three of its U.S. Uranium Mines https://bit.ly/3Ru3Lxv
• December 20, 2023 – Panther Metals PLC: Financing Update https://bit.ly/41OC3jB
• December 20, 2023 – Critical Metals PLC advances the Molulu Copper-Cobalt Project in DRC https://bit.ly/3ts5TxH
• December 19, 2023 – Auxico Announces Board Decisions on Key Assets and Filing of Technical Reports https://bit.ly/3TyNxFY
• December 19, 2023 – Automotive OEM Validates Nano One LFP and Kicks Off Tonne-Scale Evaluations https://bit.ly/48g4KZ6

The recent provisional agreement by the Council and the European Parliament to bolster the supply of critical raw materials with the proposed Critical Raw Materials Act heralds a pivotal advancement in Europe’s raw material strategy. Awaiting formal adoption, this agreement is a testament to the European Union’s commitment to transforming its raw material dependency into a pillar of continental strength.

Teresa Ribera Rodríguez, the acting Spanish third vice-president, underscores the significance of this initiative within Europe’s broader ecological and demographic ambitions. The regulation ambitiously aims to enhance the EU’s role in the extraction, processing, and recycling of 34 critical raw materials, with a special focus on 16 considered strategic. A key aspect of this agreement is the inclusion of aluminum in the strategic list and the emphasis on recycling, with benchmarks set to reach at least 25% of the EU’s annual raw material consumption.

This paradigm shift towards sustainable raw material management extends beyond environmental objectives, aiming to fortify economic resilience. The regulation seeks to diversify critical raw material imports, capping the EU’s reliance on any single third country to a maximum of 65% for each strategic raw material. This strategy is poised to spur innovation, as evidenced by the temporary classification of synthetic graphite as strategic and the provision for member states to veto projects within their jurisdiction.

Swiss mining giant Glencore PLC (LSE: GLEN | OTC: GLCNF | HK: 805) has aligned with these trends, announcing a pilot electric vehicle (EV) battery recycling plant. Initially eyeing Sardinia, the company is now scouting other locations across Europe and North America. This move mirrors the wider shift in the decarbonization and EV sector towards recycling, a strategic response to market fluctuations and environmental considerations.

Melissa Sanderson, Director of the Critical Minerals Institute (CMI), highlights that these developments are indicative of an overarching trend. The EU’s legislative emphasis on recycling over primary mining resonates with the decarbonization and electric vehicle sectors’ trajectory. Glencore’s strategic pivot to recycling efforts is a response to these evolving market and legislative landscapes.

The new EU regulations may also significantly impact Glencore’s broader initiatives. Should Italy ratify the proposed law, it could streamline the authorization process for Glencore’s larger recycling project, potentially relocating it to mainland Italy due to opposition in Sardinia. Sanderson notes that the industry’s exploration of alternative materials, beyond current focuses like lithium, signals a dynamic and evolving sector.

In conclusion, these developments indicate a major shift in the management of critical raw materials, steering towards a future where sustainability, economic resilience, and innovation are central to the EU’s industrial strategy. The anticipated Critical Raw Materials Act, integral to the Green Deal Industrial Plan, may not yet be formally adopted, but its influence on industry and environmental policy is already evident. As corporations like Glencore adapt to these changes, we can anticipate a continued evolution in the landscape of raw material management and recycling