Strategic Materials

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Goldman - >>> Gold’s 'record march higher set to continue,' Goldman says


Yahoo Finance

by Ines Ferré·Senior

March 25, 2024


https://finance.yahoo.com/news/golds-record-march-higher-set-to-continue-goldman-says-164325765.html#:~:text=Goldman%20Sachs%20analysts%20upgraded%20their,phase%2C%20barring%20any%20geopolitical%20surprise.


Gold’s roughly 8% month-to-date rally has room to grow with the precious metal poised to hit $2,300 an ounce by year-end, according to Goldman Sachs analysts.

On Monday futures gained to trade as high as $2,182 an ounce. The precious metal is considered a safe haven during times of geopolitical tensions and when interest rates decrease. Last week, the Federal Reserve continued to signal that it would lower interest rates three times this year.

The Fed meeting “reinforced the market’s (and ours) expectations that three cuts are likely this year, lending renewed support to gold to test and surpass March’s earlier record high,” wrote a team of analysts led by Samantha Dart.

Goldman Sachs analysts upgraded their average gold price forecast for 2024 from $2,090 to $2,180 per ounce, targeting a move to $2,300 by the end of the year.

The analysts forecast gold prices in the near term will move toward another consolidation phase, barring any geopolitical surprise. However, “a substantive retracement lower will likely also be limited by resilience in physical buying channels,” wrote Dart, citing Chinese imports of the precious metal.

“Nonetheless, in the midterm we continue to hold a constructive view on gold underpinned by eventual Fed easing, which should crucially reactivate the largely dormant ETF buying,” wrote Dart.

Bullion's price increases have been disconnected from recent outflows seen in gold-related ETFs. Strategists believe investors have been rotating money into bitcoin ETFs as the token roared toward new highs earlier this month.

Central banks have been buying up gold at historic levels, helping to drive up demand over the past couple of years.

Adjusted for inflation, gold hit a record in 1980 when it hit $850 per ounce, which would equal almost $3,200 in today's dollars.

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Arafura Rare Earths Limited - >>> Rare Earths Miner Wins A$840 Million in Funding From Australia


Bloomberg

by Paul-Alain Hunt

Mar 13, 2024


https://finance.yahoo.com/news/rare-earths-miner-wins-840-000920500.html


(Bloomberg) -- Arafura Rare Earths Ltd. will receive A$840 million ($556 million) in funding from the Australian government to create the nation’s first combined mine and refinery for minerals that are crucial to the clean-energy and defense industries.

The funding will come from the government’s A$6 billion Critical Minerals Facility, the Northern Australia Infrastructure Facility, and Export Finance Australia, Prime Minister Anthony Albanese said in a statement Thursday. Once built, the project in the Northern Territory could supply almost 4% of the world’s magnet rare earths supply, according to Arafura.

The deal comes as Australia works with allies including the US to expand its capacity in critical minerals production and processing in a bid to break China’s near monopoly in the sector. It follows Wednesday’s announcement of government funding of A$550 million to lithium developer Liontown Resources Ltd., to ensure it reaches first production from its Kathleen Valley spodumene project in Western Australia.

“The road to net zero runs through Australia’s resources sector and the development of our critical minerals sector will play a key role,” Albanese said in the statement.

Arafura’s Nolans neodymium-praseodymium open cut mine and associated processing project is 135 kilometers (84 miles) north of Alice Springs and has an estimated mine life of around 40 years. The company’s biggest shareholder is Hancock Prospecting Ltd., controlled by Australia’s richest woman Gina Rinehart, with a 9.1% stake.

Trading in Arafura was halted in Sydney before the announcement. Since hitting a record high in February 2023, its shares have slumped 78%. They closed at 14.75 Australian cents apiece on Wednesday.

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>>> Arafura Rare Earths Limited (ARAFF) explores for and develops mineral properties in Australia. It focuses on the production of rare earth products, such as neodymium-praseodymium and mixed middle-heavy rare earths oxides. The company holds 100% interests in the Nolans project, a rare earths-phosphate-uranium-thorium deposit that supplies neodymium and praseodymium products; and the Aileron-Reynolds project comprising six granted exploration licences covering an area of approximately 1,240 kilometer square located in Northern Territory, Australia. It also engages in social and environmental studies and evaluations. The company was formerly known as Arafura Resources Limited and changed its name to Arafura Rare Earths Limited in October 2022. Arafura Rare Earths Limited was incorporated in 1997 and is based in Perth, Australia.

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>>> Neo Performance Materials Inc. (NOPMF) engages in the manufacture and sale of rare earth, magnetic powders, magnets, and rare metal-based functional materials in Canada and internationally. The company operates in three segments: Magnequench, Chemicals and Oxides, and Rare Metals.

The Magnequench segment produces magnetic powders that are used in bonded and hot deformed fully dense neodymium-iron-boron magnets. Its powders are used in the production of bonded permanent magnets that are components in automotive motors, micro motors, traction motors, sensors, and other applications.

The Chemicals and Oxides segments manufactures and distributes a range of industrial materials for use in auto catalysts, consumer electronics, petroleum refining, hybrid and electric vehicles, and municipal and industrial wastewater treatment applications.

The Rare Metals segment sources, produces, reclaims, refines, and markets high-temperature metals that include tantalum, niobium, hafnium, and rhenium; and electronic metals, such as gallium and indium for jet engines, medical imaging, wireless technologies, and LED lightings, as well as flat panel displays, solar, steel additives, batteries, and electronic applications.

The company was founded in 1994 and is headquartered in Toronto, Canada.

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The Metals Company (TMC) - >>> Pentagon to Deliver Report on Domestic Processing of Seafloor Nodules by March 1 as President Biden Signs NDAA


GlobeNewswire

The Metals Company

January 3, 2024


https://finance.yahoo.com/news/pentagon-deliver-report-domestic-processing-133000108.html


Under the National Defense Authorization Act (FY24) now signed into law by President Biden, the House Armed Services Committee directs the Assistant Secretary of Defense for Industrial Base Policy to submit a report assessing the domestic processing of seafloor polymetallic nodules by March 1, 2024.

Last month, thirty-one Members of Congress wrote a letter to the Secretary of Defense and the Pentagon urging the Department of Defense to “explore every avenue to strengthen our rare earth and critical mineral supply chains”, emphasizing “the importance of evaluating and planning for seabed mining as a new vector of competition...”.

The news comes as American and allied auto and battery makers struggle to secure supplies of critical battery metals that comply with guidelines for incentives under the Inflation Reduction Act.


NEW YORK, Jan. 03, 2024 (GLOBE NEWSWIRE) -- TMC the metals company Inc. (Nasdaq: TMC) (“TMC” or the “Company”), an explorer of the world’s largest estimated undeveloped source of critical battery metals, today welcomed the passage of the 2024 National Defense Authorization Act (NDAA) into law and the inclusion of provisions directing the Department of Defense to submit a report to the House Armed Services Committee assessing the domestic processing of seafloor polymetallic nodules by March 1, 2024.

In the language attached to the newly approved Act, the Committee acknowledged the imperative of establishing a secure supply chain of critical and strategic minerals and materials and noted, “that to meet national security requirements the United States must have the ability to source critical minerals in innovative arenas to decrease reliance on sources from foreign adversaries.” As a potential new frontier for resource extraction, the Committee directs the Pentagon to produce a report which, among other things, outlines “a roadmap recommending how the United States can have the ability to source and/or process critical minerals in innovative arenas, such as deep-sea mining.”

Through the NDAA, the House Armed Services Committee has directed the Assistant Secretary of Defense for Industrial Base Policy to submit a report to the Committee by March 1, 2024 “assessing the processing of seabed resources of polymetallic nodules domestically. The report shall include, at a minimum, the following: (1) a review of current resources and controlling parties in securing seabed resources of polymetallic nodules; (2) an assessment of current domestic deep-sea mining and material processing capabilities; and (3) a roadmap recommending how the United States can have the ability to source and/or process critical minerals in innovative arenas, such as deep-sea mining, to decrease reliance on sources from foreign adversaries and bolster domestic competencies.”

In November 2023, a bipartisan coalition led by Senator Lisa Murkowski (R-AK) re-introduced a resolution calling on the U.S. Senate to ratify the UN Convention on the Law of the Sea (UNCLOS), arguing that “the longer we sit out, the longer the rest of the world will continue to set the agenda of maritime domain, from seabed mining to critical subsea infrastructure.” That same month, five Members of the US House of Representatives from Texas urged the Department of Defense to support the use of federal resources under the NDAA towards TMC’s feasibility study for nodule processing along the Texas Gulf Coast. In a letter to the Assistant Secretary of Defense for Industrial Base Policy, Laura D. Taylor-Kale, the Members wrote: “The applicant seems to have the ability to produce battery-grade materials at commercial facilities in North America at pilot scale. The scope of the submission focuses solely on U.S. processing and appears to offer the Department of Defense the opportunity to re-shore critical mineral supply lines.”

Over recent years, TMC has welcomed letters from congressional leaders including the House Armed Services Committee as well as former military leaders urging the Biden Administration to assess domestic processing of seafloor polymetallic nodules as a means to secure key energy transition metals and “close national security vulnerabilities.” In March last year, TMC Chairman and CEO Gerard Barron wrote to the Senate Energy and Natural Resources Committee, noting, “Support from the U.S. Government for the development of the polymetallic nodule resource and TMC’s first project, NORI-D, would unlock access to the resource without overcoming legislative hurdles to ratify the United Nations Convention on the Law of the Sea.”

About The Metals Company

The Metals Company is an explorer of lower-impact battery metals from seafloor polymetallic nodules, on a dual mission: (1) supply metals for the global energy transition with the least possible negative impacts on planet and people and (2) trace, recover and recycle the metals we supply to help create a metals commons that can be used in perpetuity. The Company through its subsidiaries holds exploration and commercial rights to three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean regulated by the International Seabed Authority and sponsored by the governments of Nauru, Kiribati and the Kingdom of Tonga.

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>>> TMC the metals company Inc. (TMC) , a deep-sea minerals exploration company, focuses on the collection, processing, and refining of polymetallic nodules found on the seafloor in the Clarion Clipperton Zone (CCZ) in the south-west of San Diego, California. It primarily explores for nickel, cobalt, copper, and manganese products. The company holds exploration and commercial rights in three polymetallic nodule contract areas in the CCZ of the Pacific Ocean. Its products are used in electric vehicles (EV), renewable energy storage markets, EV wiring, clean energy transmission, manganese alloy production required for steel production, and other applications. The company was formerly known as Sustainable Opportunities Acquisition Corporation and changed its name to TMC the metals company Inc. TMC the metals company Inc. was incorporated in 2019 and is based in Vancouver, Canada.

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Re-post - >>> Yes....but as I mentioned in my post you responded to, it may be years or a decade before any mining takes place. Unless there are changes in the way permits are vetted and approved, an eye watering deposit of minerals is only a teaser. You can look around the USA and find many examples of very promising mineral deposits that companies are in the process of developing that are many years in without a $1 to show for their effort. I look at producing miners and fully permitted soon to be producing for opportunities.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=173872189

If you are interested in miners you might take a look at TMC. The defense department is due to release a study on deep sea mineral mining on March 1st outlining:

thirty-one Members of Congress wrote a letter to the Secretary of Defense and the Pentagon urging the Department of Defense to “explore every avenue to strengthen our rare earth and critical mineral supply chains”, emphasizing “the importance of evaluating and planning for seabed mining as a new vector of competition...”.


TMC has said they intend to begin mining operations in 2025. https://investors.metals.co/news-releases/news-release-details/tmc-announces-corporate-update-expected-timeline-application/

There are still some potential pitfalls, but there is also the possibility that they will legally be able to mine. Speculative, yes, but at least they are at the end of the permitting process and if the defense department backs them it can only add additional pressure on the process to proceed.

I currently have no position but may take one. I look at the company as well positioned if they are allowed to mine their claim, but that is still a big, "but". They will also have to raise cash to begin operations, so share dilution is probably in their future....something to consider.

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>>> American Rare Earths Limited engages in the exploration and development of mineral resources in Australia and the United States. The company explores for rare earth, scandium, and cobalt deposits. Its 100% owned flagship property is the Halleck Creek project situated in Wyoming, the United States. The company was formerly known as Broken Hill Prospecting Limited and changed its name to American Rare Earths Limited in July 2020. American Rare Earths Limited was incorporated in 1986 and is based in Sydney, Australia.

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https://finance.yahoo.com/quote/ARRNF/profile



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>>> Billions of Rare and Valuable Materials Discovered in Wisconsin Could Make U.S. the Leading Producer of Rare Earth Materials


Savvy Dime

2-15-24


https://www.msn.com/en-us/money/markets/billions-of-rare-and-valuable-materials-discovered-in-wisconsin-could-make-u-s-the-leading-producer-of-rare-earth-materials/ss-BB1ikBmA?ocid=BingHp01&cvid=3e32749d12754a5f91b8eec6fd7f5159&ei=32#image=1


In an exciting development, the United States might be on its way to exceeding global leader China as the top extractor of rare minerals. A recent discovery of a huge cache of minerals has the potential to upset the world economy in a big way.

Rare earth minerals are essential to daily life in the modern world, making devices like computers, smartphones, and hybrid cars possible.

What Was Discovered?

A company called American Rare Earths Inc. recently announced the discovery of a huge cache of rare minerals that is estimated to be more than 2.57 billion tons.

The discovery is reported to be in an area in Wyoming where the company has holdings of over 6,320 acres of land and 367 mining claims.

What Are Rare Earth Minerals?

"Rare earth mineral" is the name for 17 metallic elements on the periodic table. Their name doesn’t come from the fact that they are scarce, but from the history of how difficult they were to find.

Although they are abundant on the earth, they are spread so thin that people need to process tons of ore just to find traces of them.

Why Are These Minerals So Sought After?

Rare earth minerals have unique properties that give them specific applications for developing technology and medical use. The minerals tend to have conductive and magnetic properties that can enhance other elements when combined in a mixture or alloy.

Some are also essential for many forms of energy generation like nuclear, solar, wind, and oil refining. The International Energy Agency speculates that the demand for these minerals is expected to increase between three and seven times by 2040.

China’s Industry Dominance

The nation of China accounts for nearly 95 percent of the earth’s rare mineral processing, and the United States currently imports more than 74 percent of its own supply of essential minerals from it. China also produces nearly 60 percent of the world's supply of these minerals.

In the past, China has used this position to threaten to withhold exports as a political tool against the United States and other countries.

China’s Ban on Rare Earth Processing Technology

In December of 2023, China surprised the world by announcing a ban on rare earth extraction technology. (via Reuters) It is thought that the motivation for this move is to cripple the United States since they would have to start building up their own technology to process the minerals they previously relied on China for.

The move came on the heels of news that China’s economy is struggling under the weight of recent world events like the pandemic.

The Race Is On

While China intended its latest efforts to control prices and secure its position in the world, a backfire may be possible. China’s ban will definitely hurt countries in the short term. However, as these countries build their own technologies in the coming years, they will invariably break China’s dominance over the industry.

Now, just two months later, the United States has discovered its own supply of rare earth minerals that will boost its ability to compete.

Previous Drilling by American Rare Earths

This is not the first time that American Rare Earths has found caches of rare earth minerals, but it is certainly the largest by far. Their first drilling attempt in 2023 found 1.32 million tons.

The second drilling attempt found 64 percent more minerals, which surprised the CEO of the company. The increased discovery of metals in the subsequent drilling is a good sign that there is huge potential for the mining site.

Just Scratching the Surface

Don Schwartz, CEO of American Rare Earths, issued a statement on the findings, excited about the future prospects of the company’s project.

‘Typically, you’ll see the resource decrease as infill drilling takes place – instead, we’re seeing the opposite, with only 25 percent of the project being drilled to this point,” he said.

Which Rare Earth Minerals Were Discovered?

Several rare earth minerals were discovered at the mining site in Wheatland, Wyoming. These included minerals like samarium, dysprosium, terbium, praseodymium, and neodymium.

The discovery of neodymium is of particular interest for its application in magnets used in smartphones and computer drives. However, all of the minerals discovered have important applications for industrial and commercial products.

Open Mining Will Likely Be Used

The extraction method that American Rare Earths will use is reportedly open pit mining.

This type of extraction is criticized for its negative environmental impact but is common throughout the world for this type of work. It is also the fastest method for getting these minerals, which allows a company to work at a rate of 20,000 tons of rare earth minerals per day.

Is There a Reason for China to be Worried?

If American Rare Earths continues to discover more rare earth minerals, China may have to reconsider its export strategy. While China has the edge in processing technology at the moment, more companies around the world are making strides to overcome their independence and chip away at their global dominance.

The United States, as well as Australia and Canada, are already several years into a plan to scale up their processing and refining efforts.

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Battery metals glut - >>> Base Metals Up, Gold Edged Higher, Battery Metals Glut


iHub News

January 23 2024


https://ih.advfn.com/market-news/article/5435/base-metals-up-gold-edged-higher-battery-metals-glut


Base metals prices rose on improved sentiment following the Bloomberg report that Chinese authorities are considering a package of measures to stabilize the stock market.

Top metals consumer China “will remain key in driving the general trend of the whole complex, most likely resulting in rangebound moves,” Sucden Financial said.

Meanwhile, gold edged higher as the dollar softened while investors awaited economic data and central bank decisions.

Battery Metals

Wood Mackenzie forecast a glut of lithium, cobalt, nickel and graphite to continue for several years.

It said automakers are likely sitting on large stockpiles of battery cells for EV sales that failed to materialize.

Citing the China Automotive Battery Innovation Alliance, Wood Mackenzie said only 387 GWh of the 747 GWh of power batteries produced in China in 2023 were installed into products.

“With storing batteries being an expensive business, automakers may have a more cautious appetite for purchasing cells in 2024.”

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>>> Federal helium reserve sale may disrupt supplies for MRIs, computer chips


UPI

by Doug Cunningham

January 26, 2024


https://www.yahoo.com/news/u-just-sold-helium-stockpile-000321805.html


The Thursday sale of the massive federal helium reserve could worsen an existing supply shortage. Helium is essential to keep hospital MRI machines running and to manufacture computer semiconductor chips.


Jan. 26 (UPI) -- The sale of the Federal Helium Reserve to the highest private bidder Thursday could have a huge impact on healthcare and disrupt hospital supply chains and even semiconductor chip manufacturing.

The winning bidder of the auction Thursday hasn't been publicly identified.

A major concern in the health industry is MRI machines that need helium to function, threatening not just hospital supply chains but individual healthcare for patients who need MRIs.

It's also an essential ingredient in semiconductor chip manufacturing, so the sale of the reserve would impact anyone using those chips.

Soumi Saha, a senior vice-president of Premier Inc. said an existing helium supply shortage may get worse as regulatory and logistical issues could cause a temporary shutdown of the existing federal supply while it transitions to private ownership.

"We are stressing about this shortage. From a health care perspective, MRI machines are the No. 1 concern," Saha said.

Premier Inc. contracts with helium suppliers to supply hospitals.

The massive federal stockpile of helium spans three states and about 6 billion cubic feet of helium is held underground in the Bush Dome.

A 1996 law -- the Helium Privatization Act of 1996 -- forced the sale of nearly all the 30 billion cubic feet of helium held in the Bush Dome and pegged the cost not at market rates, but at the annual inflation rate.

Private companies bought it and resold it at higher prices. The auction this week puts the remainder in private hands.

Bo Sears, author of Helium: The Disappearing Element, told Texas Monthly, "It is this formula of pricing that has caused all of the shortages that we see today."

Since just a few countries produce helium, the element is in relatively short supply.

The sale of the federal helium reserve prompted Scott Whitaker, president and CEO of AdvaMed, the Medtech Association, to urge the White House to delay the final sale and privatization of the helium reserve.

"Helium is critical to the function and operation of key medical technologies patients rely on for their care," Whitaker said in a statement.

"For example, it's used to cool the magnet in magnetic resonance imaging machines. American patients receive an estimated 40 million MRI scans each year to help diagnose strokes, tumors, brain injury, spinal cord injury and heart problems."

Advamed joined the Semiconductor Industry Association, Compressed Gas Association, the Aerospace Industries Association and the Medical Imaging and Technology Alliance to warn the federal government in October that selling the helium reserve carried a significant risk.

"The FHR sale as the General Services Administration has proposed it poses significant risks of disruption to the United States helium supply chain," they wrote in a joint letter.

"We urge the White House to intervene and delay transfer of the FHR until the transfer of the facility can be done in a manner that maintains the safety of the facility and the reliability of the helium supply chain."

While the winner of the auction hasn't been announced, Messer, a company that helps manage the Cliffside plant on the reserve, could be the highest bidder.

According to Compressed Gas Association CEO Rich Gottwald, several issues related to logistics and regulation in Texas, Oklahoma and Kansas as the helium reserve goes private could force a shutdown of the facility for as long as three years.

One of those issues is enrichment of the helium. The new owner of the helium reserve would have to lease enrichment facilities from other private companies that own the enrichment system.

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>>> Arcadium Lithium Announces Completion of Merger of Equals between Allkem and Livent


Arcadium Lithium PLC

04 Jan, 2024


https://www.prnewswire.com/news-releases/arcadium-lithium-announces-completion-of-merger-of-equals-between-allkem-and-livent-302026354.html


Combination Creates a Leading Global Integrated Lithium Chemicals Producer

Key Strengths

Leading global lithium chemicals producer with the resources, scale and expertise to meet growing customer and industry needs - reliably, safely and responsibly.

Premier lithium resources and manufacturing sites in key locations globally across the lithium value chain.

Highly complementary assets and vertically integrated business model focused on enhancing operational flexibility and predictability while lowering costs.

Ability to de-risk and accelerate growth with a world-class pipeline of development projects, proven execution capabilities and technical, capital and projects expertise.

Leading sustainability profile, with an unwavering commitment to continuous improvement, decarbonization and delivering greater value to customers, employees, communities and shareholders.


PHILADELPHIA and BRISBANE, Australia, Jan. 4, 2024 /PRNewswire/ -- Arcadium Lithium plc (NYSE: ALTM, ASX: LTM, "Arcadium Lithium") today announced the completion of the all-stock merger of equals between Allkem and Livent. The new, combined company is a leading global lithium chemicals producer committed to safely and responsibly harnessing the power of lithium to improve people's lives and accelerate the transition to a clean energy future. With roughly U.S. $1.9 billion of combined total revenue in 2022 and a global team of more than 2,600 employees, Arcadium Lithium is one of the largest integrated producers of lithium chemicals in the world.

Paul Graves, Chief Executive Officer of Arcadium Lithium, said: "As one of the leading global producers of lithium chemicals, Arcadium Lithium has the resources, scale and expertise to meet the growing needs of our rapidly changing industry. We are a leader in every major lithium extraction process – from hard rock mining to conventional pond and DLE-based brine processing – and vertically integrated, from resource to chemical manufacturing, in strategic locations around the world. This will open doors to new opportunities and strengthen our ability to deliver value to our customers, investors, employees and communities."

Mr. Graves continued: "It is a privilege for me to lead this great company forward with such an incredible team. This transformational merger would not have been possible without the hard work and commitment of our integration planning teams over the past months. I want to thank them and all of our employees around the world for getting us to this position. Together, we are launching an exciting new company that combines the strengths and storied legacies of two incredible organizations, both with an wavering commitment to safe, responsible and sustainable operations. We look forward to building on this strong foundation and leading our industry forward."

Arcadium Lithium ordinary shares will begin trading today on the NYSE under the ticker "ALTM." Arcadium Lithium also maintains a foreign exempt listing on the ASX (via the issue of CHESS Depositary Instruments (CDIs) to Allkem shareholders) and will commence trading on a normal settlement basis on the ASX under the ticker "LTM" at 10:00am (AEDT) on January 5, 2024. Allkem shareholders received either: (a) one Arcadium Lithium ASX listed CDI; or (b) one Arcadium Lithium NYSE listed share depending where they resided and what election (if any) they had made for each Allkem ordinary share held, except for shareholders in certain ineligible jurisdictions, who will receive cash proceeds from the sale of the Arcadium Lithium CDIs in lieu of such CDIs after closing. Livent shareholders received 2.406 Arcadium Lithium NYSE listed ordinary shares for each Livent share held.

Arcadium Lithium will have approximately 1,074 million ordinary shares outstanding upon closing.

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Re-post - >>> I spent the first half of 2023 selling most of my individual holdings with the expectation of a substantial correction; obviously wrong. After the recent run I don't have much conviction for individual issues, I'm happy to collect interest payment and wait. I do like some miners, lithium and copper, but the recent bump in price combined with the negative opinions of near term potential keep me watching. I do still have a stake in Pilbara Minerals bought in late 2020 and early 2021. I like PKX, ALB, PILBF, FCX and SCCO, but not until they drop back below their recent lows. I do like semiconductors, but not at these elevated prices. It's a harder space for me to pick winners so I prefer using SMH. Again, there would need to be a substantial correction to make them attractive. As I age I become more willing to wait, watch and collect interest payments.

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>>> Exxon to start lithium production for EVs in the U.S. by 2027


Reuters

11-13-23

By Sabrina Valle



https://www.msn.com/en-us/money/topstories/exxon-to-start-lithium-production-for-evs-in-the-u-s-by-2027/ar-AA1jQQMr?OCID=ansmsnnews11



HOUSTON (Reuters) -Exxon Mobil on Monday said it plans to start producing lithium from subsurface wells by 2027 to provide supplies of the key metal used in electric-car batteries and advanced electronics.

Oil majors are investing in the electrification sector as governments in the United States and Europe set programs to promote wider use of electric vehicles and reduce fossil-fuel consumption.

Exxon said it will start production from briny waters pumped out of the ground in an area in the state of Arkansas known to hold significant lithium deposits to help develop a domestic source of the metal.

"In the long term, lithium really is a global opportunity," said Dan Ammann, president of Exxon's Low Carbon business unit. "We are starting here because there is an urgent need to ramp up domestic production of these critical materials."

The largest U.S. oil company said it would use conventional oil and gas drilling methods to access lithium-rich saltwater from reservoirs about 10,000 feet underground and then use direct lithium extraction (DLE) technology to separate lithium from the saltwater.

Ammann did not disclose how much Exxon intends to invest in the lithium business, or when it might become profitable.

The company's majority-owned Canadian affiliate, Imperial Oil, also has invested in a lithium-extraction pilot project in Alberta, Canada.

Exxon plans to begin production with partner Tetra Technologies, Reuters exclusively reported on Saturday. It will produce the metal onsite and sell it under the brand name Mobil Lithium, the company said on Monday.

Exxon had acquired the rights to 120,000 gross acres of the Smackover formation in Arkansas earlier this year.

European oil rivals BP and Shell have invested in electric vehicle charging stations as part of their energy transition strategy. A Deloitte study released earlier this year showed investors would like to see more spending on such technologies.

Exxon, which invented the rechargeable lithium-ion battery in the 1970s, but stepped away from the technology, has no plans to invest in charging stations, the executive said.

Exxon is focusing on lithium production to be used not only in EVs but also consumer electronics and energy storage systems that can hold electricity generated from intermittent solar and wind power.

There are about 280 million vehicles in the United States today, and less than 3 million are EVs, or about 1% of the total, Ammann said.

"There is still 99% to go, which suggests it is a very, very big opportunity," he said.

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>>> Rare-earths miner Lynas jumps as Malaysia allows key plant extension


Reuters

October 24, 2023

By Rishav Chatterjee


https://finance.yahoo.com/news/rare-earths-miner-lynas-jumps-030907425.html


(Reuters) - Shares of Lynas Rare Earths hit their highest in over a month on Wednesday, extending gains, after Malaysia allowed the miner to operate its flagship refinery locally with a variation to the operating licence.

Shares jumped as much as 5.6% to A$7.2 as of 0229 GMT, hitting highest since Sept. 19 and putting the company on track to sit among the top 10 gainers in the ASX 200 benchmark index.

The government of Malaysia said on Tuesday it will allow Lynas Malaysia, which has been operating in central Pahang state since 2012, to import raw materials containing natural radioactive material and process rare earths until March 2026 after a long-running regulatory battle.

The license extension comes despite concerns raised in recent years by Malaysia regarding radiation levels from the cracking and leaching operations during raw material processing.

Science and technology minister Chang Lih Kang said Lynas will be allowed to import radioactive material and continue processing rare earths, provided the firm carries out thorium extraction to remove radioactive waste.

"Lynas has de-bottlenecked its cracking and leaching following the license update", while eyeing multiple opportunities to further improve production, analysts at Macquarie said.

The brokerage also lifted its price target on the biggest rare earths miner outside of China by 3% to A$7.70 and upgraded the earnings outlook for a near-term period.

Lynas' Malaysia refinery, its first outside China, has been embroiled in a radiation dispute at the plant with Lynas challenging an earlier ruling that would have halted operations.

In a statement on Tuesday, Lynas said the change to its license will allow its Malaysian facility to continue to import and process lanthanide concentrate from its mine in Western Australia.

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>>> Xi’s Metal Curbs Risk Backfiring as G-7 Seeks China Alternative


Bloomberg News

July 4, 2023


https://finance.yahoo.com/news/xi-metal-curbs-risk-backfiring-043801904.html


(Bloomberg) — China’s decision to control the export of two key metals showed it has some power to retaliate against moves by the US, Japan and Europe to cut Beijing off from advanced technology. But it also risks backfiring.

The new export licensing system unveiled late Monday highlighted China’s dominant position in global production of gallium and germanium, which are used to make chips, electric cars and telecommunications equipment. The announcement — just days before US Treasury Secretary Janet Yellen visits Beijing — appears timed to give China leverage as it pushes the White House to remove export controls that risk hobbling the nation’s development.

Yet the measure is a double-edged sword, and may simply accelerate efforts by those countries to reduce dependence on the world’s second-biggest economy. If Beijing did at some point uses these new rules to restrict shipments and cut supply to other nations, prices would likely rise and make it more economical to boost output in Japan, Canada, the US or elsewhere.

“It’s part of the tit-for-tat the PRC is playing with the US and its allies,” said Ja Ian Chong, an associate professor of political science at the National University of Singapore. He was referring to the country’s formal name, the People’s Republic of China. “There may be some initial shock to the markets and firms but over time, should these restrictions persist, markets and firms adjust.”

The move underscores the dilemma facing President Xi Jinping as he seeks to counter US efforts to prevent China from accessing the chips needed to dominate technology like artificial intelligence and quantum computing. Any reciprocal actions only give the US and Europe more ammunition to push for derisking, something Xi’s government has sought to counter.

“China always takes a tit-for-tat approach,” Roy Lee, Taiwan’s deputy foreign minister, said of the new measures, which he called a retaliation to export controls by the US and other democratic nations. These “will become an accelerator for countries including Taiwan, South Korea and Japan to reduce our dependence on China supply of those critical minerals and materials.”

Rare Earth Weapon

China’s previous efforts to restrict the sale of rare earths have only diminished its market share as other countries work to secure supplies of the metals that aren’t controlled by China.

China first introduced an export licensing system for rare earths in the 1990s while also gradually ramping up taxes, squeezing companies in Japan and elsewhere that relied on Chinese supplies. But the big shift happened in 2010, when Beijing temporarily halted exports to Japan in reaction to a collision between a Chinese fishing boat and the Japanese coast guard near islands claimed by both countries.

That incident set off a race to find alternative supplies from China. Output in Australia and the US subsequently increased, pushing China’s share of mining output down to 70% of global supply in 2022 from a peak of 98% in 2010, according to the US Geological Survey.

China currently accounts for about 94% of the world’s gallium production, according to the UK Critical Minerals Intelligence Centre. Still, the metals aren’t particularly rare or difficult to find, though China’s kept them cheap and they can be relatively high-cost to extract.

“Imposing export restrictions risks reducing market dominance,” researchers from Eurasia Group including Anna Ashton wrote in a note. “If implemented as is, China’s new export mineral restrictions could offer fresh impetus for foreign manufacturers to shift production out of China, accelerating the trend of supply chain diversification.”

China said the new licensing system for exports of gallium and germanium, along with their chemical compounds, was aimed at protecting national security — the same justification given by the US and it allies for their export controls.

The announcement nevertheless sparked concern in Europe about potential disruption to supply chains in the short term and is likely to spur discussion about how to reduce the bloc’s reliance on China.

The European Union announced a new economic security strategy last month and launched a Critical Raw Materials Act to ease financing and permitting for new mining and refining projects, and also to strike trade alliances to reduce the bloc’s dependence on Chinese suppliers. If the new rules were used to restrict exports, that escalation of tensions could threaten the bloc’s ability to transform its economy to become more environmentally friendly.

The immediate effect of the changes seems to be limited, according to a statement from the Korean industry ministry on Tuesday, which noted that there are other supplies of the two metals.

However even if China doesn’t use this new rule to limit exports at some point in the future, it arguably has more to lose than the US, particularly as its mounting economic challenges raise questions about whether it will ever take over as the world’s biggest economy.

Beijing’s most effective tool to sanction others is to cut off access to its huge market, or limit exports of strategically important goods. But this further drives the decoupling from China that Beijing wants to avoid, as it would undermine its stated goals of ensuring the nation is dominant in new technologies and essential in global supply chains.

At the moment, however, the growing ideological struggle between the US and China is taking precedence over globalization, Morris Chang, the founder of chip giant Taiwan Semiconductor Manufacturing Co., said at an industry event in Taipei on Tuesday.

“Right now national security and technology and economic leadership take priority over globalization,” he said. “The relations between US and China are more about competition than collaboration.”

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>>> Undersupply of magnet rare earths to hit 60,000 tonnes by 2030


Mining.com

May 5, 2023


https://www.mining.com/supply-of-rare-earth-magnets-wont-keep-with-demand-by-2040-report/


A recent report by Adamas Intelligence predicts that from 2023 through 2040 global demand for NdFeB magnets will increase at a compound annual growth rate of 7.5%, bolstered by double-digit growth from electric vehicle and wind power sectors.

According to the report, such growth will translate to a comparable demand increase for the critical rare earth elements – didymium, dysprosium and terbium – the magnets contain.

The forecast takes into account trends and events observed in recent years. Following a latent demand pop in 2021 that saw the materialization of some pent-up demand from the year prior, Adamas Intelligence data indicate that global consumption of NdFeB magnets increased 1.9% year-over-year in 2022, suppressed by global economic headwinds and regional pandemic-related challenges.

Looking at production, the Canadian firm’s forecast sees didymium, dysprosium and terbium (the so-called magnet rare earths) collectively increasing from 2023 through 2040 at a compound annual growth rate of 5.2% as the supply side of the market increasingly struggles to keep up with rapidly growing demand.

By 2040, Adamas also expects an annual NdFeB undersupply of 246,000 tonnes.

“Constrained by increasingly tight availability of magnet rare earth feedstocks, we forecast that global undersupply of NdFeB alloy and powder will amount to 60,000 tonnes annually by 2030 and 246,000 tonnes annually by 2040 – an amount almost equal to last year’s total global NdFeB alloy and powder production,” the report reads.

NdPr oxide is also predicted to be undersupplied by 90,000 tonnes by 2040 due to a lack of new primary and secondary supply sources from 2023 onward.

“We forecast that global undersupply of didymium oxide (or oxide equivalent) will rise to 19,000 tonnes-per-annum by 2030 and 90,000 tonnes-per-annum by 2040 – an amount roughly equal to last year’s total global primary plus secondary production,” Adamas points out.

Dysprosium and terbium oxides (or oxide equivalents) seem to follow a similar pattern given the lack of new primary and secondary supply sources from 2023 onward. Adamas expects an annual undersupply of 1,800 tonnes and 450 tonnes, respectively, by 2040.

Overall, the market for magnet rare earth oxides is set to increase five-fold by 2040, with total magnet rare earth oxide consumption forecasted to increase at a CAGR of 5.2% versus a higher 7% for demand, while prices are projected to grow at CAGRs of 3.3% to 5.2% over the same period.

“Adamas Intelligence forecasts that the value of global magnet rare earth oxide consumption will increase five-fold by 2040, from an estimated us $10.8 billion this year to us $56.7 billion by 2040,” the document reads.

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>>> Lithium’s Next Big Risk is Grand Supply Plans Falling Short


Bloomberg

by Annie Lee and Mark Burton

January 15, 2023


https://finance.yahoo.com/news/lithium-next-big-risk-grand-220000291.html


(Bloomberg) -- Electric-vehicle producers are hoping that an imminent wave of lithium supply will bring relief for their expansion plans after a two-year squeeze, but the battery metal’s die-hard bulls warn of more pain if producers fall short.

Rampant lithium demand has caught many forecasters by surprise, with booming global EV sales causing consumption to double over the past two years. With suppliers unable to keep pace, a blistering price rally sent the total spot value of lithium consumption rocketing to about $35 billion in 2022, up from $3 billion in 2020, according to Bloomberg calculations.

Some bearish lithium-watchers say fast-growing supply, rather than dizzying demand, will be the decisive factor in 2023. Five analyst forecasts reviewed by Bloomberg point to much more balanced global market after clear shortages in 2022, while BYD Co., China’s top EV seller, is counting on a lithium surplus.

But there are many skeptics from who warn of fresh tightness if miners from Chile to China and Australia hit hurdles in launching daunting volumes of new supply. The reviewed forecasts peg production increases of between 22% and 42% in 2023: a breakneck pace for any complex extractive industry.

“I really don’t think there’s any reason to believe that so many tons can magically appear this year to return the market to balance,” Claire Blanchelande, a lithium trader at Trafigura Group, said by phone from Geneva. “The pain is not over yet.”

At stake is the pace at which the world’s vehicle fleet adopts battery power. Lithium-ion battery costs rose last year for the first time in the EV era, according to BloombergNEF. Elon Musk bemoaned lithium’s “insane” rally and said high raw material costs were among Tesla Inc.’s biggest headwinds.

Not Matched

There’s broad agreement that lithium supply is heading for a major increase in 2023 as a wave of expansions or new projects get up and running. The more bearish voices say that supply wave will hit the market just as China’s withdrawal of generous EV subsidies causes demand to cool, creating a mismatch that could trigger a sharper fall in prices.

Average prices this year are likely to fall about 8% from average 2022 levels, according to the mean of five forecasts reviewed by Bloomberg.

The divisive issue is whether less-established producers will be able to deliver in full, defying a range of regulatory, technical and commercial challenges. The extraordinary pace of lithium’s expansions - across both demand and supply - has made forecasting the market a contentious pursuit.

“2023 is when lithium becomes what I call a volume game,” said Chris Berry, president of House Mountain Partners, a consultant to the battery-materials sector. “We need to see a supply response from both existing producers and near-term producers who will need to execute flawlessly in the face of sustained lithium demand.”

Softer Market

Lithium prices have already come down about 20% from an eye-popping record in November, in an early sign of respite for buyers. Lithium carbonate in China fell to 480,500 yuan a ton ($71,500) on Jan. 13, the lowest since August.

A cause for optimism on supply is that the largest increases will be coming from veteran top producers like Albemarle Corp. and Chile’s SQM that are considered more likely to succeed. But they only account for about a third of anticipated increases, according to data from BMO Capital Markets.

The next tier down is a small army of nascent lithium producers who will need to prove they can get up and running. And beyond those, there’s unconventional new sources like lepidolite — a lithium-bearing mineral that’s emerging in China as a serious option. JPMorgan Chase & Co. called it “one of the largest threats” to prices.

But it’s also a controversial topic, with some specialists saying it’s costly and environmentally harmful to convert in large volumes for battery use.

“We will see more lepidolite be brought online in China in 2023,” Cameron Perks, analyst at Benchmark Mineral Intelligence said. “But we won’t see as much as being predicted by others. Give it five or 10 years, and it will increasingly become an important part of the market.”

All of this means the path to supply and cost relief for carmakers is fraught, even before considering the demand side of the ledger.

No Collapse

For now, China’s withdrawal of EV credits, as well as uncertainties over the pandemic and global economy, are weighing on the outlook. But a faster-than-expected reopening of China’s economy, and the rest of the world escaping a deep slump, could yet deliver an upside surprise.

“The market consensus and the consensus that I would agree with is that in 2023 pricing is likely to plateau, with perhaps some potential for downside but by no means do I see any sort of a pricing collapse,” said Berry of House Mountain Partners.

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>> Nevada lithium mine gets conditional $700M government loan


By SCOTT SONNER

Associated Press


https://www.msn.com/en-us/news/us/nevada-lithium-mine-gets-conditional-700m-government-loan/ar-AA16jHdS?OCID=ansmsnnews11


RENO, Nev. (AP) — The U.S. Department of Energy announced a conditional loan of $700 million Friday to an Australian mining company to pursue a lithium project still facing environmental hurdles in Nevada as the U.S. seeks domestic supplies for a key component in electric vehicle batteries.

The move ups the ante in what's already a high-stakes battle over President Joe Biden's energy agenda and conservationists fighting to protect an endangered wildflower found only at the proposed mine site on a high desert ridge halfway between Reno and Las Vegas.

Ioneer Ltd. has hoped to begin mining at Rhyolite Ridge by 2026 in Esmerelda County. The Energy announcement said the site could produce enough lithium to support production of about 370,000 electric vehicles annually for decades.

The loan would be the latest project to demonstrate the Biden administration's commitment to strengthen the nation's battery supply chain, electrify the transportation sector and cut reliance on fossil fuels and foreign supplies of raw materials, the Department of Energy said.

Jigar Shah, director of DOE's Loans Programs Office, said his office is “excited to further develop an environmentally responsible U.S. supply chain for critical materials.”

“Rhyolite Ridge is a major step towards bolstering domestic lithium production for clean energy technologies,” he said.

James Calaway, executive chairman of Ioneer, said the conditional commitment “highlights the project's strategic role in strengthening the nation's critical mineral supply chain in providing a secure, sustainable and reliable domestic source of lithium for the growing vehicle ecosystem.” Bernard Rowe, Ioneer's managing director, said it came after 23 months “of discussion and due diligence” by Energy and “represents a significant milestone” for the project.

But the project still faces a significant legal and regulatory challenge in developing a mining operations plan that will provide adequate protection for the endangered Nevada wildflower, Tiehm's buckwheat. (lol)

The U.S. Fish and Wildlife Service said in declaring it endangered last year that it is on the brink of extinction and the mining project posed the single biggest threat to its survival.

Conservationists have sued in the past to protect the 6-inch-tall plant with yellow blooms and vowed on Friday to do so again if necessary.

“What this looks like is a fairly transparent effort by the Biden administration to build political and economic momentum for the project in an effort to steamroll the U.S. Fish and Wildlife Service and the Endangered Species Act,” said Patrick Donnelly, Great Basin director for the Center for Biological Diversity.

“Ioneer is going to have to completely overhaul the design of this mine if they expect to pass through permitting,” he said in an email to The Associated Press. “We’ve sued or initiated lawsuits over Tiehm’s buckwheat four times already, and we won’t back down until every buckwheat is saved." (lol)

The Energy Department announcement said the Ioneer project is working to minimize impact on the plant. It said the loan is contingent on completion of an environmental impact statement in accordance with the National Environmental Policy Act (NEPA).

The Biden administration has made a plan for half a million charging stations for electric vehicles a signature piece of its infrastructure goals. That effort, and the growth of electric vehicle companies such as Tesla, will require much more lithium to make batteries.

Although lithium reserves are distributed widely across the globe, the U.S. is home to just one active lithium mine, in Nevada. Worldwide demand for lithium was about 350,000 tons (317,517 metric tons) in 2020, but industry estimates project demand will be up to six times greater by 2030.

Shah said large projects like this go forward step by step.

"We clearly are not committing any capital to the project yet," Shah said Friday in a telephone interview with AP. “They still have to meet the conditions. But by doing this, it gives their equity investors some comfort that they should continue to invest in the project.”

Sen. Jacky Rosen, D-Nev., is among those backing the project.

“I applaud the Energy Department for providing this loan to help support the mining and processing of Nevada’s critical minerals, help reduce greenhouse gas emissions, and contribute to the creation of jobs in our state," she said in a statement.

Lithium is fundamental to the battery technology that is most common in electric vehicles and battery electric storage systems. But many engineers are working on alternative battery chemistries because lithium involves rock mining, which means major disturbance to the environment.

Ioneer is a lithium focused company based in New South Wales, Australia and Reno.

Another new lithium mining project in development in the U.S. is proposed for Thacker Pass by Lithium Americas near the Oregon line. That northern Nevada mine would make millions of tons of lithium available, but it too faces legal challenges. Native American tribes have argued that it’s located on sacred lands near where dozens of their ancestors were massacred in 1865.

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MP Materials - >>> Did Apple Just Spell Doom for This Rare-Earth Elements Stock?


Motley Fool

By Nicholas Rossolillo

Nov 11, 2022


https://www.fool.com/investing/2022/11/10/did-apple-just-spell-doom-for-this-rare-earth-elem/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

Apple CEO Tim Cook talked about recycling rare-earth elements in Apple's most recent earnings call.
MP Materials is the only U.S.-based rare-earth elements producer of its kind and Cook's comments are worth taking note of.

At this point, MP is still enjoying strong growth as it ramps up its operations.

MP Materials stock could still be a wait-and-see play.
With rising demand for advanced computing hardware and renewable energy solutions, many investors have hope for the rare-earth elements (REEs) niche of the mining industry. These materials are prized for their high electric conductivity and magnetic properties, but they can be quite expensive to mine. Fortunately, just a trace amount of a REE like cerium, neodymium, lanthanum, or terbium can go a long way in the manufacture of all sorts of items from batteries to medical equipment.

More REEs will be needed in the decade ahead and some estimates point to this corner of the mining industry growing at a double-digit percentage in the next five years or so.

Most REE production takes place in China, so many investors looking for a U.S.-based company have landed on MP Materials (MP -1.50%) as a top way to invest in this space. It's the only publicly traded U.S.-based REE producer, and it's been a wild but profitable ride since MP became a publicly traded company a couple of years ago. But did Apple (AAPL 0.04%) just douse the party with cold water?

When Apple talks, people listen

Rare-earth elements are getting plenty of hype, and MP is benefiting. Not only is global demand headed up, but there's also political motivation for a U.S.-based producer to succeed to reduce dependence on China's REE market. Though shares have been hit fairly hard by the bear market of 2022, MP has still doubled in price since its 2020 IPO, clobbering the 5% return of the S&P 500 over that same span of time.

But not everyone wants to keep increasing use of newly mined REEs. During the company's Oct. 27 earnings call with analysts, Apple (AAPL 0.04%) CEO Tim Cook said:

Across our entire product lineup, we also continue to source more materials through recycling while taking less from the Earth. Every iPhone 14 is made with 100% recycled rare-earth elements in all magnets, including those used in MagSafe. And in a first for Apple Watch and iPad, we're using recycled gold in the plating of multiple printed circuit boards in our newest devices. While we're working to reduce the footprint of our hardware, we're making changes to our software to be more environmentally friendly with the soon-to-be released Clean Energy charging feature for iPhone.

While details of its recycled REE supply chain are scant, to say the least, a few tiny REE recycling businesses have appeared in the U.S. in recent years. One recycling technology developed by a segment of the U.S. Department of Energy has apparently been licensed by a small materials engineering company based in Iowa. Other government initiatives are underway to spur on REE recycling, too.

Investors in MP Materials will want to watch how things develop and how Apple influences the industry.

Is MP Materials sunk?

On one hand, maybe MP stock won't be a great investment after all if Apple leans into this. Apple is one of the largest tech hardware companies and it has quite the track record of finding novel ways to squeeze its material suppliers to maximize its own profit margins. Besides being able to tout its earth-friendly (or maybe "earth-friendlier") recycled products supply chain, no doubt Apple's switch to reused REEs comes with a long-term profit margin improvement target.

On the other hand, demand for rare-earth elements is rising quickly, and even some early estimates for REE recycling growth merely match the expected growth rate of overall demand. Mined or reprocessed, the world will need more of these elements for use in things like electric cars and energy grid storage (giant battery packs).

And though MP's growth has slowed as 2022 has dragged on, it isn't exactly hurting. Q3 2022 revenue increased 25% year over year to $124 million, and net income increased 48% to $63 million. The company currently derives its revenue from the sale of REE concentrate, but it's busy working on a material refining facility and a value-added magnetics operation as well. The company is also working on REE recycling efforts.

At this point, there isn't much indication that Apple's recycled iPhone components will dent demand for MP's production. But if you're an MP shareholder, it's worth keeping tabs on this development now that MP has the ball rolling on its mining operations. Shares of MP Materials now trade for 22 times trailing-12-month earnings, close to the cheapest valuation it's had since going public, so it's worth a look.

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>>> Researchers Find Possible Replacement for Rare Earth in Magnets

New way of making tetrataenite could help produce magnets

More work is needed to determine if method is suitable


By Bloomberg News

October 24, 2022


https://www.bloomberg.com/news/articles/2022-10-24/researchers-find-possible-replacement-for-rare-earth-in-magnets


Scientists may have discovered a method for making magnets used in wind turbines and electric cars without the rare-earth metals that are almost exclusively produced in China.

A team from the University of Cambridge and colleagues from Austria found a new way to make tetrataenite, a possible replacement for rare-earth magnets, according to a research paper from the university. If the manufacturing process is proven to be commercially feasible, it could loosen China’s dominance of the rare-earth market where it accounts for over 80% of global supply.

US President Joe Biden earlier this year backed efforts to boost output of the critical materials, while the European Union’s foreign service this month said the bloc should diversify supply chains, including for rare-earth metals, away from China. In 2019, the Asian nation warned it could cut exports to hit back in its trade war with Washington.

It could be possible to produce tetrataenite, an iron-nickel alloy, at scale by adding the common element phosphorous, the researchers found. Previously, making tetrataenite -- whose magnetic properties approach those of rare-earth magnets -- in the laboratory relied on impractical methods, they said.

The researchers are hoping to work with major magnet manufacturers to determine whether tetrataenite could be suitable for high-performance magnets.

“Rare earth deposits exist elsewhere, but the mining operations are highly disruptive: you have to extract a huge amount of material to get a small volume of rare earths,” Lindsay Greer from Cambridge’s Department of Materials Science & Metallurgy, who led the research, said in the paper. “Between the environmental impacts, and the heavy reliance on China, there’s been an urgent search for alternative materials that do not require rare earths.”

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>>> Biden awards $2.8 billion to boost U.S. minerals output for EV batteries


Reuters

Oct 19, 2022

By David Shepardson and Ernest Scheyder


https://www.reuters.com/markets/us/us-awards-28-billion-ev-battery-grid-projects-2022-10-19/


WASHINGTON, Oct 19 (Reuters) - The Biden administration said on Wednesday it is awarding $2.8 billion in grants to boost U.S. production of electric vehicle batteries and the minerals used to build them, part of a bid to wean the country off supplies from China.

"By undercutting U.S. manufacturers with their unfair subsidies and trade practices, China seized a significant portion of the market," President Joe Biden said Wednesday in announcing the awards."Today we're stepping up... to take it back, not all of it, but bold goals."

Albemarle Corp (ALB.N) is among the 20 manufacturing and processing companies receiving U.S. Energy Department grants to domestically mine lithium, graphite and nickel, build the first large-scale U.S. lithium processing facility, construct facilities to build cathodes and other battery parts, and expand battery recycling.

The grants, which are going to projects across at least 12 states, mark the latest push by the Biden administration to help reduce the country's dependence on China and other nations for the building blocks of the green energy revolution.

The funding recipients, first reported by Reuters, were chosen by a White House steering committee and coordinated by the Energy Department with support from the Interior Department.

But the program does nothing to alleviate permitting delays faced by some in the mining industry.

Albemarle is set to receive $149.7 million to build a facility in North Carolina to lightly process rock containing lithium from a mine it is trying to reopen. That facility would then feed a separate U.S. plant that the company said in June would double the company's lithium production for EV batteries.

Albemarle, which also produces lithium in Australia and Chile, said the grant "increases the speed of lithium processing and reduces greenhouse gas emissions from long-distance transportation of raw minerals."

Piedmont Lithium Inc (PLL.O), whose shares rose nearly 11% following the news, was awarded $141.7 million to build its own lithium processing facility in Tennessee, where the company will initially process the metal sourced from Quebec and Ghana. Piedmont's plans to build a lithium mine in North Carolina have faced strong opposition.

Talon Metals Corp (TLO.TO), which has a nickel supply deal with Tesla Inc (TSLA.O), will receive $114.8 million to build a processing plant in North Dakota. That plant will process rock extracted from its planned underground mine in Minnesota.

The grants are "a clear recognition that production of domestic nickel and other battery minerals is a national priority," Talon said.

Other grants include $316.2 million to privately-held Ascend Elements to build a battery parts plant, $50 million to privately-held Lilac Solutions Inc for a demonstration plant for so-called direct lithium extraction technologies, $75 million to privately-held Cirba Solutions to expand an Ohio battery recycling plant, and $219.8 million to Syrah Technologies LLC, a subsidiary of Syrah Resources Ltd (SYR.AX), to expand a graphite processing plant in Louisiana.

BIDEN'S GOAL

By 2030, Biden wants 50% of all new vehicles sold in the United States to be electric or plug-in hybrid electric models along with 500,000 new EV charging stations. He has not endorsed the phasing-out of new gasoline-powered vehicle sales by 2030.

Legislation tied to the program that Biden signed in August sets new strict battery component and sourcing requirements for $7,500 consumer EV tax credits. A separate $1 trillion infrastructure law signed in November 2021 allocates $7 billion to ensure U.S. manufacturers can access critical minerals and other components to manufacture the batteries.

The White House said that the United States and allies do not produce enough of the critical minerals and materials used in EV batteries.

"China currently controls much of the critical mineral supply chain and the lack of mining, processing, and recycling capacity in the U.S. could hinder electric vehicle development and adoption, leaving the U.S. dependent on unreliable foreign supply chains," the White House said.

In March, Biden invoked the Defense Production Act to support the production and processing of minerals and materials used for EV batteries.

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Lynas Rare Earths - >>> More Governments Are Warming to Rare Earths Funding, Lynas Says


Bloomberg

by Harry Brumpton

August 3, 2022


https://finance.yahoo.com/news/more-governments-warming-rare-earths-092455500.html


(Bloomberg) -- Lynas Rare Earths Ltd. said more developed nations could invest in new capacity for the critical minerals, after the US government agreed $120 million of funding for the company’s planned facility there.

Governments in Western Europe, the US, and Japan are newly focused on creating more resilient supply chains, Chief Executive Officer Amanda Lacaze said at the Diggers & Dealers Mining Forum in Kalgoorlie, Australia on Wednesday. She said she doesn’t expect Australia to provide the sort of financial backing that the US put toward a planned facility in Texas.

“We have engaged certainly with the EU and their objective to increase independence in this area. I think there is potentially a preparedness for direct investment,” Lacaze said in an interview with Bloomberg News. Germany in particular understands that the automotive industry will need to have secure supply chains in future, she said.

Lynas is the only major producer of refined rare earths outside China. The Sydney-listed company signed a contract with the U.S. Department of Defense to establish a heavy rare earths separation facility in the US that it expects to be operational by 2025. That was one of the most direct interventions to date by developed nations increasingly concerned by China’s dominance in rare earths, essential elements in electronics and other sectors.

“Building a new facility in the US would not have been number one on our priority list if it was coming off our own balance sheet but given it was coming off the US government’s balance sheet, it moved up,” Lacaze said. “The Australian government is not comfortable with large grants so the Australian government provides loans, and I’m not comfortable with putting a lot of debt into our business.”

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>>> MP Materials - >>> It's no secret that the adoption of electric vehicles (EV) is shifting into high gear these days. But with all this enthusiasm, there are also well-warranted concerns that the production of rare earth metals, also known as rare earth oxides, or REOs, for the industry will be insufficient. Add to this the fact that China is responsible for the majority of REO production, and it's clear that a U.S.-based REO production company like MP Materials would be a compelling consideration for investors.

When digging into potential investments, one of the most alluring things one can find is that a company has a competitive advantage -- something which MP Materials has in spades. True to their name, REOs are rare, and the barrier to entry for prospective mining companies is formidable. MP Materials, however, has an invaluable asset in the Mountain Pass mine, which has helped the company to become the largest REO producer outside of China. Moreover, the company is developing a vertically integrated infrastructure that will result in it mining the metals, producing the concentrate, and developing rare earth magnets -- a critical component in EVs as well as other applications like drones and wind turbines.

In light of the fact that MP Materials is already generating revenue, earnings, and cash flow, growth investors who are reluctant to take on too much risk should find MP Materials especially interesting.


https://www.fool.com/investing/2022/07/22/3-growth-stocks-you-can-buy-right-now-for-under-10/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


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>>> MP Materials Set to Join S&P MidCap 400


Yahoo Finance

July 22, 2022


https://finance.yahoo.com/news/mp-materials-set-join-p-224500695.html


NEW YORK, July 22, 2022 /PRNewswire/ -- MP Materials Corp. (NYSE:MP) will replace Sanderson Farms Inc. (NASD:SAFM) in the S&P MidCap 400 effective prior to the opening of trading on Wednesday, July 27. Cargill and Continental Grain acquired Sanderson Farms in a deal that closed today.

For more information about S&P Dow Jones Indices, please visit www.spdji.com

ABOUT S&P DOW JONES INDICES

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spdji.com.

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Lynas Rare Earths - >>> China has a stranglehold on the world’s supply of critical rare earths. These firms are trying to loosen its grip


Fortune

by Eamon Barrett

July 22, 2022


https://finance.yahoo.com/news/china-stranglehold-world-supply-critical-073504612.html


China is the world’s largest producer of rare earth metals, dominating 80% of global supply for the materials that are essential to much of today’s high-end tech. Magnets spun from rare earth are needed to create the engines that power electric vehicles, the motors inside wind turbines and guiding systems inside missiles.

Rare earths are so vital that in 2019, after Beijing threatened to limit global supply, the U.S. launched a slew of legislative action to bolster domestic supply.

And the U.S. isn’t the only country trying to loosen China’s stranglehold on the industry. Companies in Australia and the U.K. are investing millions to develop new rare earth refineries too, with the global efforts to pry Beijing’s hand loose of the industry converging, by chance, around the year 2025.

The U.K.’s promised refinery

On Thursday, London-listed Pensana broke ground on a $170 million rare earth metal manufacturing site in the north of England where the company intends to spin rare earth oxides—which will be refined from rare earth ores mined in Angola—into magnets. Pensana says the plant, which is still under construction, will enter operation in 2024 and produce 5% of the global supply of rare earth magnets by 2025. But some experts are skeptical of Pensana’s ambition.

Per Kalvig, senior researcher at the Center for Minerals & Material, told the Financial Times that Pensana—which was created in 2019 and announced its first business plan in 2021—lacks the expertise to pull-off the project by itself.

“The required expertise on the mine-to-magnet value-chain is not developed overnight,” Kalvig said. China has developed its own industry over decades, undercutting global competitors that are burdened with higher labor costs and stricter environmental regulation.

Lynas rare earth

Lynas Rare Earths is the world’s largest rare earth processor outside of China. The Sydney-based group’s main facility is in Malaysia but the miner has been expanding its U.S. presence, too. In June, the U.S. Department of Defense granted Lynas a $120 million contract to build a processing facility in Texas—home to Round Top mountain, one of the largest deposits of rare earth ores in the U.S. Development of the processing facility and mines in Texas will bolster America's domestic supply of rare earth metals, providing a local alternative to suppliers in China.

The Lynas Texas facility is billed to start production in 2025, the same year Lynas also plans to commence its first ever refinery in Australia—a $345 million facility in the city of Kalgoorie in western Australia, where the company plans to extract rare earth carbonates that will be processed into useful materials at its other global sites.

Lynas received approval to develop its western Australia project in April. The same month, Canberra greenlit fellow Aussie miner Iluka Resources to develop another rare earth refinery in the same region, providing the refinery with a $749 million loan. Both refineries claim to be Australia’s first.

Former Australia Resources Minister Keith Pitt said the Iluka facility could supply 9% of the global market with the most common type of rare earth oxides once it enters operation in 2025.

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>>> MP Materials Corp.: MP Materials produces rare earth materials such as lanthanum, cerium oxides, and carbonates. The company operates mining and processing facilities in California. MP Materials reported on May 5 earnings results for Q1 2022, ended March 31. Net income grew more than five-fold as revenue nearly tripled YOY. Strong prices and cost discipline contributed to overall performance.


https://www.investopedia.com/top-materials-stocks-4582152?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral


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MP Materials - >>> 1 Under-the-Radar Growth Stock to Buy in May


Motley Fool

By Scott Levine

May 15, 2022


https://www.fool.com/investing/2022/05/15/1-under-the-radar-growth-stock-to-buy-in-may/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

MP Materials reported a strong first quarter for 2022.
The company is on track to complete two growth projects.

GM has signed a supply agreement for rare earth magnets.


Growth stocks may not be en vogue right now, but that's just fine for patient investors with long investing horizons.
With pessimism running rampant in the markets, finding a quality growth stock to add to your portfolio might not seem like the most pressing need right now. Savvy investors know, however, that it's times like these that are often the greatest buying opportunities. While many investors are searching for defensive positions, grabbing a quality growth stock can lead to serious long-term gains.

Fortunately, investors with the resolve to withstand the current volatility don't need to look far. MP Materials (MP 9.57%) is a great growth stock poised to prosper as the electric vehicle (EV) industry accelerates, and it's worth digging into.

Unfamiliar with what MP Materials does? You're not alone. Mining companies usually don't make headlines, but the other factor behind the company's apparent anonymity is the fact that it hasn't been available to Main Street investors for too long. The company only made its debut on the public markets via SPAC in November 2020.

Add to this the fact that growth investors interested in the EV industry -- but uninterested in the manufacturers -- will most likely dig into lithium stocks, since the metal is found in EV batteries. Rare earth metals, however, are also critical materials in EVs -- and they're frequently overlooked since there aren't a lot of related investment opportunities. Therein lies the allure of MP Materials, which characterizes itself as the owner and operator of "the only integrated rare earth mining and processing site in North America."

Where it's recently been

Reporting first-quarter 2022 earnings earlier this month, MP Materials is off to a rock-solid start this year. The company logged quarterly records on several metrics: revenue, net income, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). And that's just on the income statement. Elsewhere in the financials, investors found many other reasons to call the company's recent quarter a success. MP Materials also reported operating cash flow of a whopping $71 million, representing a considerable improvement over the negative $10 million in free cash flow that the company reported during the same period last year.

While the company's cash flow increased dramatically, it's important to note that the rise in rare earth oxide prices jumped sharply between the two periods. Moreover, there's no certainty that the commodity price will remain as high; therefore, investors shouldn't expect that dramatic increases in cash flow will be a consistent feature of the company's earnings reports.

Further back in 2021, MP Materials positioned itself for greater long-term growth by expanding the ore body. The company increased the estimated reserve of contained rare earth oxides 28%, and it now projects that the mine life has 35 years ahead of it, representing an increase of 11 years over what it had preciously thought.

The modeling used on the asset which resulted in the added mineral reserve isn't based on the higher price of rare earth oxides; nonetheless, it's important to note that should the commodity price plummet, it would compromise the value of the asset and possibly reduce the life of mine.

...and where it's headed

In the most immediate of two growth projects, MP Materials is currently retrofitting its processing facility at Mountain Pass -- the location of its core asset -- to optimize production of rare earth oxides and reduce associated costs. Management projects that it will complete this Stage II project in 2022, after which the company will be able to produce heavy rare earth concentrate, an important component of magnets used in both consumer and defense applications such as EVs, defense systems, drones, and robotics.

The other growth project that it's engaged in developing, Stage III, is a facility located in Texas that will be capable of producing the finished magnets used in end-products. Management estimates the project will be completed in 2025 or later.

Both projects will help the company achieve the U.S. government's goal of shoring up its supply of rare earth oxides, mitigating the country's reliance on China, which is the predominant source of rare earth oxides.

A powerful growth stock to park in your portfolio

While MP Materials is flying under the radar of most investors, the company is receiving close attention from others. Late last year, for example, General Motors inked a supply agreement with MP Materials for rare-earth magnets, and more recently the company received a $35 million award from the Department of Defense.

While the company has recently enjoyed strong earnings growth, there's no guarantee that the market price of rare earth oxides will remain high, assisting the company in maintaining this level of profitability. Nonetheless, market demand for rare earth oxides will remain high -- and likely rise -- as consumer demand for EVs grows.

With the stock trading about 42% lower than its 52-week high, now is certainly a great time to charge up your portfolio with this leading rare-earth metals producer.

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>>> Everything About MP Materials Is Up Triple-Digits


Motley Fool

By Rich Smith

May 9, 2022


https://www.fool.com/investing/2022/05/09/everything-about-mp-materials-is-up-triple-digits/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

MP Materials nearly tripled its sales and quintupled its earnings in Q1.

This rare earth metals miner is growing its business to feed insatiable demand for the magnets that go into electric cars. And it's starting to generate positive free cash flow, too.

And do my eyes deceive me, or did MP Materials just turn free cash flow positive?

CO2 levels in the atmosphere hit an all-time high (since humans started taking measurements, at least) of 420 parts per million in April, as The Wall Street Journal reported on Thursday -- and that's probably bad news for global warming. But here's something else that happened on Thursday: Rare earth metals mining company MP Materials (MP -5.77%) absolutely crushed its Q1 earnings estimates.

Rare earths, such as the neodymium and praseodymium that MP mines, are essential for the manufacture of rare earth magnets that drive the electric motors powering most electric vehicles (EVs) today -- and that, advocates hope, will help solve the climate crisis tomorrow. It makes sense then that with EV sales surging around the world, sales at MP Materials would be surging as well. Even knowing that, however, the numbers MP just put up for the fiscal first quarter of 2022 are kind of mind-blowing.

Double digits ... and triple digits, too

For Q1, MP reported "adjusted" earnings per share (EPS) of $0.50 and sales of $166.3 million -- numbers 22% and 21% more than Wall Street had predicted, respectively. Those double-digit beats made Q1 a clear win for MP, but let's put those numbers in context to show just how truly impressive this quarter was:

Revenues at MP Materials surged 177% year over year.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 301%.

EPS quintupled -- up exactly 400% when calculated according to generally accepted accounting principles (GAAP).

And total net income ran up 431% (a bit more than EPS because MP issued a few new shares).

Now, it's worth pointing out that much of these gains -- but not all of them -- is explained by the fact that MP benefited from a 135% jump in the price of rare earth oxides year over year. This owes partly to "higher demand for rare earths driving increased market prices," and possibly also due to supply chain constraints (because more than half of global rare earths come from China, which has suffered supply chain snarls as it fights to contain a Covid outbreak). Decreased demand, or increased supply of rare earths could cause prices to fall back in the future, slowing future profits growth at MP.

Also, MP's earnings are growing off a very small base -- MP earned less than a dime a share a year ago -- which is helping the company produce all these triple-digit gains. Still, much of MP's work is in what the company calls "Stage I" of development, with work on evolving to Stage II separation of rare earth oxides in progress, and Stage III -- construction of a special facility to manufacture rare earth magnets -- only just beginning.

It should also be borne in mind that all this development work is a cash drain. By my calculation, MP Materials' free cash flow is about $53 million over the past 12 months -- only about 25% of reported net income. Future investments in Stages II and III could further constrain FCF growth.

All this being said, on balance I believe that as MP Materials evolves from a rare earth miner to a rare earth magnets manufacturer, its GAAP profits and cash profits have a good chance of continuing to grow strongly.

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>>> MP Materials Begins Construction on Texas Rare Earth Magnetics Factory to Restore Full U.S. Supply Chain


Business Wire

April 21, 2022


https://finance.yahoo.com/news/mp-materials-begins-construction-texas-130000136.html


MP Materials and General Motors simultaneously announce a definitive supply agreement commencing in late 2023 to produce rare earth alloy and magnets for GM’s EV programs

The facility will create approximately 150 skilled jobs and approximately 1,300 indirect jobs

MP Materials’ Texas magnetics facility will source materials from Mountain Pass, California, and produce magnets powering approximately 500,000 EV motors per year, with potential to scale

The facility is a substantial component of a $700 million investment MP Materials will make to fully restore the U.S. rare earth magnetics supply chain over the next two years

Integrated recycling and leading environmental capabilities will deliver world class sustainability to support the energy transition


FORT WORTH, Texas, April 21, 2022--(BUSINESS WIRE)--MP Materials Corp. (NYSE: MP) today commemorates the start of construction at its first rare earth metal, alloy, and magnet manufacturing facility, located in Fort Worth, Texas. The first-of-its kind U.S. facility is a substantial component of a $700 million investment the company will make over the next two years to fully restore the U.S. rare earth magnetics supply chain. The project will create around 150 high-skill jobs and 1,300 indirect jobs and is located in Hillwood’s 27,000-acre, mixed-use development, AllianceTexas.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220421005098/en/

In parallel, MP Materials and General Motors (NYSE: GM) are co-announcing a definitive supply agreement to produce alloy and magnets for GM’s EV programs. The definitive supply agreement solidifies the terms of a binding agreement announced by MP Materials and GM in December. Under the long-term agreement, MP Materials will supply U.S.-sourced and manufactured rare earth materials, alloy, and finished magnets for the electric motors in more than a dozen models using GM’s Ultium Platform, with a gradual production ramp that is expected to begin in late 2023, starting with alloy.

MP Materials’ Fort Worth facility will have the capacity to produce approximately 1,000 tonnes of neodymium-iron-boron (NdFeB) magnets per year, supporting the production of approximately 500,000 EV traction motors, with room to scale. In addition to EVs, NdFeB magnets are critical inputs to robots, wind turbines, drones, defense systems, and many other high-growth technologies. Adamas Intelligence, an independent research firm, forecasts that global demand for NdFeB magnets will triple by 2035 on the back of rising demand for EV traction motors, wind power generators, energy efficient consumer appliances, and more.

In February, the Department of Defense awarded MP Materials $35 million to refine and separate heavy rare earth elements at the company’s Mountain Pass, California, rare earth materials production facility. MP’s Texas magnetics factory will source refined feedstock from Mountain Pass and transform it into finished products, delivering an end-to-end supply chain, including mining and refining, metal, alloy, and magnet manufacturing, and recycling.

Mountain Pass is a closed loop, zero-discharge facility with a dry tailings process that recycles more than 1.7 billion liters of water per year. To optimize for efficiency and sustainability, byproduct generated from alloy and magnet manufacturing will be recycled in a closed loop to every extent possible.

James Litinsky, Founder, Chairman, and Chief Executive Officer, MP Materials

"Bringing magnetics capabilities home is transformational for MP Materials and America’s supply chains. I am very proud that after a series of executive orders spanning multiple presidential administrations MP Materials is leading the restoration of the full supply chain and the revitalization of the American manufacturing spirit in our sector."

Anirvan Coomer, Executive Director, Global Purchasing & Supply Chain, General Motors

"The new MP Materials magnetics facility in Fort Worth, Texas, will play a key role in GM’s journey to build a secure, scalable, and sustainable EV supply chain. As the foundational automotive customer of the Fort Worth facility, GM will use the products from this plant in the GMC HUMMER EV, Cadillac LYRIQ, Chevrolet Silverado EV, and more than a dozen models based on GM’s Ultium platform. We also look forward to collaborating with MP Materials from a public policy perspective to seek policies that are supportive of the establishment of an efficient U.S.-based rare earth and magnet supply chain."

Ross Perot Jr., Chairman, Hillwood and The Perot Group

"Today is an exciting day for North Texas and our entire country. MP Materials is not only bringing their state-of-the art magnetics facility to AllianceTexas, but also reshoring important next-generation manufacturing jobs to America. Securing and developing rare earth materials is one of the most important national security issues of our day, and we’re proud that AllianceTexas can partner with MP Materials to play a key role in America’s ability to power its future."

The Honorable Ted Cruz, U.S. Senator for Texas

"The United States needs to do everything we can to end our dangerous dependence on China for rare earth elements and critical minerals across the entire supply chain. It is both significant and important that MP Materials is going beyond mining and into alloying and manufacturing, and I’m deeply proud of the role Texas is playing in these projects."

The Honorable Kay Granger, U.S. Representative for Texas

"MP’s investment will bring hundreds of new jobs and millions in economic growth to the TX-12 community. Rare earth materials are crucial for many defense systems, and by producing these much-needed magnets, this facility will reduce our dependence on countries like China. For the sake of our national security, we must continue to increase domestic rare earth production, and I’m proud that we will do that right here in Fort Worth."

The Honorable Michael Burgess, U.S. Representative for Texas

"When it comes to solving the energy crisis facing our nation, we need innovative and visionary solutions at the forefront. It is exciting that Texas is able to welcome another energy provider today with the groundbreaking of MP Materials’ new rare earth alloying and magnet manufacturing facility. I hope you will join me in welcoming MP Materials to our community."

The Honorable Beth Van Duyne, U.S. Representative for Texas

"Rare earth magnets are essential for U.S. economic and national security, and it is vital to our national interest that we manufacture these components at scale here at home. I applaud MP Materials for building this landmark facility in Fort Worth, and I’m pleased that Texas is at the forefront of restoring this important supply chain back to America."

The Honorable Marc Veasey, U.S. Representative for Texas

"Rare earth magnets are critical to the energy transition and security of the United States. It is essential we manufacture these components in the United States from domestic materials sourced in an environmentally responsible manner. The people of TX-33 are prepared to support and lead this effort."

The Honorable Greg Abbott, Governor of Texas

"Congratulations to MP Materials on the groundbreaking of their new magnet manufacturing facility and engineering headquarters in Fort Worth. This incredible investment will not only create more than 100 new jobs for hardworking Texans, but will also bolster the state’s supply chain in high-tech industries while solidifying Texas as a mecca for advanced manufacturing and innovation. It’s thanks to industry innovators like MP Materials that ‘Made in Texas’ continues to be the most powerful global brand."

The Honorable Mattie Parker, Mayor of Fort Worth

"This new MP Materials facility is an excellent fit for the groundbreaking work being done at AllianceTexas, and it presents an incredible opportunity to bring more advanced manufacturing jobs home to the U.S. right here in Fort Worth. Our local, state, and national economic and mobility goals require secure development of rare earth magnets, and I am proud that Fort Worth will serve as a center for our nation's focus on advancing this effort."

About MP Materials

MP Materials Corp. (NYSE: MP) is the largest producer of rare earth materials in the Western Hemisphere. The Company owns and operates the Mountain Pass Rare Earth Mine and Processing Facility in California, North America’s only active and scaled rare earth production site. Separated rare earth elements are critical inputs to the world’s most powerful and efficient magnets found in electric vehicles, drones, defense systems, wind turbines and various advanced technologies. The Company is developing U.S. metal, alloy and magnet manufacturing capacity to build these critical components domestically. More information is available at https://mpmaterials.com/.

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SYAAF Graphene for Electric Vehicles

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>>> Big Money Feeds, Fuels MP Materials


FX Empire

by Lucas Downey

April 11, 2022


https://finance.yahoo.com/news/big-money-feeds-fuels-mp-103404078.html


And the mining company with a focus on critical electric vehicle materials could rise even more due to big demand. But another likely reason is Big Money lifting the stock.

MP Materials Attracts Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And MP Materials has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals MP has made since June 2020.

The last few weeks have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:


In the last year, the stock attracted 11 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

1-month outperformance vs. Materials Select Sector SPDR ETF (+11.8% vs. XLB)

Outperformance is important for leading stocks.

MP Materials Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, MP Materials has been profitable and growing sales at triple-digit rates! Take a look:

Profit margin (+40.7%)

3-year sales growth rate (+147.2%)

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, MP has been a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

MP has a lot of qualities that are attracting Big Money. It’s made this list twice since it started trading in 2020, with its first appearance last month on 03/29/2022…and declining 4.0% since. The blue bars below show the times that MP Materials was a top pick. Given the green signals and upward trend in the previous chart, it could definitely rise more and may be a new Big Money gem:

It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if MP makes additional appearances in the years to come. Let’s tie this all together.

MP Materials Price Prediction

The MP Materials rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

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MP Materials - >>> 3 Top U.S. Stocks to Watch in April


Motley Fool

By Scott Levine

Apr 6, 2022


https://www.fool.com/investing/2022/04/06/3-top-us-stocks-to-watch-in-april/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


Headquartered in Nevada, MP Materials owns and operates Mountain Pass Rare Earth Mine and Processing Facility in California. Wait. Isn't that the Golden State? Yes, it is, and if this were the 1800s, we'd be talking about that yellow metal, but today, in 2022, we're focused on rare earth metals, indispensable materials found in electric vehicle (EV) batteries, wind turbines, and a variety of military applications, such as guidance and control systems. MP Materials contends that "Mountain Pass is one of the richest deposits of rare earth elements in the world," and the company argues, consequently, that it's the largest producer of rare earth materials in the Western Hemisphere.

MP Materials is of particular interest this month after last week's news that President Biden intends to invoke the Defense Production Act to shore up the country's supply of materials used in EVs. According to the United States Geological Survey, China is the predominant source of rare earth metals. In 2021, for example, China's 168,000 tons of rare earths production represented 60% of global production. With geopolitical tensions running high, MP Materials affords the U.S. the unparalleled opportunity to help secure the nation's supply of rare earth metals.

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>>> Why Shares of MP Materials Soared 25.7% in March


Motley Fool

By Scott Levine

Apr 3, 2022


https://www.fool.com/investing/2022/04/03/why-shares-of-mp-materials-soared-257-in-march/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

Senators asked for President Biden to invoke the Defense Production Act.

President Biden heard the senators' request and will invoke the act

Interest in bolstering the supply of critical materials for EVs behooved this mining stock last month.


What happened

Extending their 14% rise in February, shares of rare earth metals mining company MP Materials ( MP -4.75% ) soared 25.7% in March, according to data from S&P Global Market Intelligence.

While the main source of investor interest in February was the company's fourth-quarter 2021 earnings report, enthusiasm for the stock last month stemmed from the growing interest in President Biden's use of the Defense Production Act (DPA) to secure the nation's supply of materials used in electric vehicles -- and the eventual decision of the White House to invoke the DPA.

So what

On March 14, senators sent a letter to the White House asking President Biden to invoke the DPA -- which gives the president the authority to compel industries to produce goods for national defense. The motivation for the letter stems from interest in shoring up the nation's supply of rare earth metals, a critical component of batteries found in electric vehicles. Representing support from both sides of the aisle, Democrat Joe Manchin and Republicans Lisa Murkowski, James Risch, and Bill Cassidy penned the letter, suggesting that the topic isn't a partisan issue.

According to Bloomberg, which claims to have seen a copy of the letter, the senators wrote that "In order to address the threats to our national security, we respectfully request that you invoke the Defense Production Act (DPA) to accelerate domestic production of lithium-ion battery materials, in particular graphite, manganese, cobalt, nickel, and lithium."

About two weeks after the senators sent the letter, the White House announced that President Biden would indeed invoke the DPA in an effort "to support the production and processing of minerals and materials used for large capacity batteries."

MP Materials is the self-proclaimed owner and operator of the only integrated rare earth mining and processing site in North America, illustrating why investors were particularly interested in the stock last month. Among the rare earth metals that the company produces are lanthanum, which prevents corrosion in EV batteries, and neodymium, which helps convert electrical energy into motion.

Now what

It's unsurprising that investors raced to MP Materials in March with bipartisan support for the DPA emerging. China is largely responsible for the global supply of rare earth metals, yet MP Materials is helping to reduce EV manufacturers' reliance on the nation for the indispensable materials used in EV batteries.

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>>> Australia's Lynas posts record revenue on strong demand for rare earths


Reuters

April 11, 2022


https://finance.yahoo.com/news/australian-rare-earth-miner-lynas-223718458.html


(Reuters) - Australia's Lynas Rare Earths on Tuesday posted a record quarterly revenue as demand for the specialized metals it mines surged amid a global push to electrify vehicles and curb carbon emissions.

Demand for neodymium and praseodymium (NdPr), among the most important minerals that Lynas mines, has soared in recent years as countries and companies pivot towards cleaner energy to tackle climate change.

The minerals are used by automakers to make magnets for electric vehicles. Rare earths are also used in a wide range of goods including iPhones and laptops.

"The market price for NdPr continued to strengthen during the March quarter and our customers continue to advise that demand for rare earths remains strong, particularly in automotive industry," Chief Executive Officer Amanda Lacaze said in a statement.

The world's largest producer of rare earths outside China said revenue rose to A$327.7 million $243.15 million) in the three months to March 31, from A$110 million a year earlier.

The miner also posted a record NdPr production of 1,687 tonnes during the quarter, up from 1,359 tonnes from a year earlier.

Lynas' full product range garnered an average selling price of A$67.4 per kilogram (kg), up from A$35.5 per kg from the previous year.

($1 = 1.3477 Australian dollars)

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>>> Do Lynas Rare Earths shares pay dividends?


Motley Fool

by Sebastian Bowen

February 8, 2022


https://www.fool.com.au/2022/02/08/do-lynas-rare-earths-asxlyc-shares-pay-dividends/


Key points

Lynas Rare Earths was one of the hottest shares on the ASX last year

Demand for rare earths soared in FY2021, leading to record revenues


But does that mean Lynas can finally pay out a dividend?
Lynas Rare Earths Ltd (ASX: LYC) was certainly one of the hottest ASX shares on the share market last year. As we covered last month here at the Fool, Lynas managed to give its investors a very impressive 155% return over 2021. Last year proved to be a year in which ASX investors looked to what was perceived to be futuristic resources companies for returns. We saw enormous interest in lithium miners like Pilbara Minerals Ltd (ASX: PLS), battery tech companies like Novonix Ltd (ASX: NVX), as well as rare earths miners like Lynas.

Rare earths is a slightly misleading name for the minerals that Lynas extracts. Lynas’ rare earths like neodymium, praseodymium, lanthanum and cerium are not ‘rare’ in the traditional sense. In fact, they are some of the most abundant minerals on Earth. Rather, finding large, concentrated deposits of them is rare.

But we digress.

Zooming out, and the returns are even more impressive for Lynas shareholders. This company is one that remains up an eye-watering 910% over the past five years, and up more than 600% since March 2020.

I’m sure Wesfarmers Ltd (ASX: WES) is kicking itself for not getting a hold of Lynas when it made a bid for the company back in 2019. Its $1.5 billion offer certainly looks like a lost opportunity now that Lynas has a market capitalisation of $8.3 billion.

But now that shareholders have enjoyed such pleasing gains in recent times, many might be wondering when they might get rewarded for simply holding the shares. I’m talking about dividend payments, of course.

At Lynas, dividends are scarcer than rare earths

So do Lynas shares pay a dividend? The answer is a resounding no. Lynas Rare Earths has never paid out a dividend to its shareholders.

That’s not to say it couldn’t though. Over FY2021, the company made $235.3 million in earnings before interest taxes, depreciation and amortisation (EBITDA). That translated to an earnings per share (EPS) of 18.08 cents per share. If Lynas hypothetically wanted to pay out 10 of those 18.08 cents of EPS as a dividend, it would have given the Lynas share price a yield of roughly 1% on today’s pricing.

But it’s possible that due to this company’s far-from-secure earnings base, it has decided to keep its powder dry. To illustrate, although FY2021 saw the company report healthy earnings, the company actually lost money on an EPS basis over the preceding financial year, FY2020. Back then, Lynas reported negative EPS of -2.79 cents per share. Obviously, if a company is losing money on an earnings basis, it can’t really afford to fork out a dividend.

Resources companies like Lynas can never predict when the market for the commodities they extract might be favourable or unfavourable. But this can make all the difference between losing money and making a healthy profit. Perhaps Lynas’ management wishes to keep its balance sheet as fortified as possible for this reason. Thus, this might be why Lynas decided to not pay out a dividend over FY2021.

But who knows what the future might hold. If the company keeps growing the way it did in FY2021, then shareholders might eventually get some income from their Lynas Rare Earths shares.

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>>> Lynas Rare Earths Limited (LYSCF), together with its subsidiaries, engages in the exploration, development, mining, extraction, and processing of rare earth minerals primarily in Australia and Malaysia. The company holds an interest in the Mount Weld project, Western Australia. Its products include neodymium and praseodymium, lanthanum, cerium, and mixed heavy rare earth materials. The company also develops and operates advanced material processing and concentration plants. In addition, it offers corporate services. The company was formerly known as Lynas Corporation Limited and changed its name to Lynas Corporation Limited in November 2020. Lynas Rare Earths Limited was founded in 1983 and is headquartered in East Perth, Australia. <<<

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MP Materials - >>> Biden to bolster mineral supply chain for phones, EVs and wind power to help end foreign reliance


MarketWatch

Feb. 22, 2022

By Rachel Koning Beals


https://www.marketwatch.com/story/biden-to-bolster-mineral-supply-chain-for-phones-evs-and-wind-power-to-help-end-foreign-reliance-11645582749?siteid=bigcharts&dist=bigcharts


Demand for minerals such as lithium and graphite used in EV batteries could increase as much as 4,000% over the coming few decades

President Joe Biden speaks during a virtual meeting on securing critical mineral supply chains.

President Joe Biden said Tuesday his administration will take action to bolster the critical mineral supply chain and eventually end U.S. reliance on economic rival China for materials considered key to electric vehicles and several other technologies.

Targeted minerals include lithium, graphite and rare earth metals REMX, +2.57%. They help run cell phones AAPL, +2.27%, computers, household appliances, electric vehicles, wind turbines and other technologies.

“China controls most of the global market in these minerals, and the fact [is] that we can’t build a future that’s made in America if we ourselves are dependent on China for the materials that power the products of today and tomorrow,” Biden said in a virtual meeting to make the administration’s announcement.

The announcement came the same day that geopolitical tensions shot higher. Russian movements in Ukraine have sent Europe into a spin over natural gas shortages and U.S. drivers are bracing for the highest gasoline prices in nine years as oil approaches $100 a barrel.

Read: Biden targets Russian banks, sovereign debt in ‘first tranche’ of sanctions over Ukraine invasion

Biden has made pushing EVs TSLA, +1.48% and wind and solar power ICLN, +1.57% the hallmarks of a pro-climate agenda. But his pro-union and pro-U.S. manufacturing stance has sometimes been at odds with the cost-effectiveness and speed of imports, particularly as he has set the U.S. on a path on halve the carbon emissions created by burning traditional fuels CL00, -0.04% by the end of this decade.

Biden said the U.S imports close to 100% of these minerals from other countries, including China, Australia and Chile.

Biden suggested that as the world transitions to a clean-energy economy, global demand for these critical minerals is set to skyrocket by 400%-600% over the next several decades, and, for minerals such as lithium and graphite used in EV batteries, demand will increase by even more — as much as 4,000%.

The White House announced that MP Materials Corp. MP, +13.00% will invest $700 million in the magnet supply chain, creating 350 jobs by 2024. The company will be given an additional $35 million from the federal government for a magnet supply chain and the processing of rare earth elements, the administration said.

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>>> MP Materials Corp. (MP)

Zacks

by Bryan Hayes

March 24, 2022


https://finance.yahoo.com/news/dizzy-whipsaw-market-thrive-leading-181706651.html


MP Materials is a producer of rare earth materials. MP owns and operates rare earth mining and processing facilities, highlighted by the mineral rights to the Mountain Pass mine in California. The company also owns the intellectual property rights related to the processing and development of these minerals. MP Materials was founded in 2017 and is based in Las Vegas, NV.

MP exceeded earnings estimates during each quarter over the past year, boasting a +33.56% average earnings surprise. The company most recently reported Q4 EPS of $0.31, a +14.81% surprise over the $0.27 consensus. The stock has advanced over 68% in the past year and is up 24% this year alone.

MP Materials Corp. Price and EPS Surprise

Analysts covering MP have increased their current-quarter EPS estimates by 70% in just the past 30 days. The Q1 Zacks Consensus Estimate now stands at $0.34, translating to potential growth of 161.54% over the same quarter last year. MP is set to release these results on May 5th.

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MP Materials - >>> Rare Earth Miner Breaks Out, But Faces Key Challenge


Investor's Business Daily

GILLIAN RICH

03/21/2022


https://www.investors.com/research/ibd-stock-of-the-day/mp-stock-near-buy-point-rare-earth-elements-green-energy/?src=A00220


MP Materials

IBD Stock Analysis

Clears handle buy point at 47.40 in rising trade.
Still faces long-term resistance in the 51 - 53 range.


MP Materials (MP) is the IBD Stock of the Day. The rare earth minerals miner is passing a buy point, but still faces a key challenge. MP stock rallied on Monday.

Rare earth elements might sound like something out of a video game quest, but these minerals are a key in the production of smartphones, computers and other electric devices. The group of 17 elements is also crucial for the switch to green energy and is needed in the production of wind turbines and electric vehicles.

China dominates the market in rare earth elements, producing over 60% of the world's supply in 2021, according to S&P Platts, citing U.S. Geological Survey data.

There are major national security concerns with the majority of global rare earth elements coming out of China, and mining companies are looking for alternate sources.

Russia holds the world's fourth largest rare earths reserves. It is the seventh-largest producer, and a big supplier for Europe. The conflict in Ukraine could weigh on Russia's exports if more sanctions are imposed. That could further add another hurdle for Europe in its green energy goals.

While Europe has no rare earths production, the U.S. accounts for 15% of global output. MP Materials owns and operates Mountain Pass in California, the only integrated rare earth mining and processing site in North America, according to the company.

However, the country isn't completely free from China's rare earth dominance. Its mixed rare earth concentrate requires further processing. and for that, MP's mined earths are sent to China. But MP Materials plans to restart integrated processing facilities at the Mountain Pass site, following this year's projected completion of its facility optimization project.

MP Stock

Shares rose 4.4% to 49.10 on the stock market today. MP stock is breaking out of a cup-with-handle base with a buy point of 47.40. Volume on the breakout settled to 30%, just below the 40% minimum you would like to see to confirm a breakout.

The relative strength line, which tracks performance vs. the S&P 500 index, is close to a 12-year high. That can be a bullish sign, corroborating a breakout.

But MP stock still remains below long-term resistance in the 51-to-53 price range. Pushing past 53 and cracking that resistance would clear a major hurdle for the stock.

MP Materials reported fourth-quarter results that topped Wall Street estimates in February. MP stock went public in November 2020 through a special purpose acquisition company, Fortress Value.

MP has a perfect 99 Composite Rating. But it has a weaker EPS Rating of 70. The Composite Rating compiles scores on key fundamental and technical metrics: earnings and sales growth, profit margins, return on equity, and relative price performance. Investors should generally focus on stocks with a Composite Rating of 90 or higher.

MP is the leading stock in IBD's Mining-Metal Ores group.

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MP Materials - >>> 3 Unstoppable Growth Stocks to Buy in March


Motley Fool

By Daniel Foelber, Scott Levine, and Lee Samaha

Mar 5, 2022


https://www.fool.com/investing/2022/03/05/3-unstoppable-growth-stocks-to-buy-in-march/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

MP Materials is a domestic producer of rare-earth minerals, a critical component of electric vehicles.

This mining company is a rare find for growth investors


Scott Levine (MP Materials): With U.S. consumer interest in EVs racing higher recently, there have been numerous calls for America to shore up its supply of rare-earth minerals, which are important components of the vehicles and largely sourced from China. The U.S. Geological Survey, for example, estimates that the U.S. has about 1.8 million metric tons of rare-earth oxides while China has approximately 44 million metric tons, or 37% of global supply. In fact, two weeks ago, the Biden administration made clear the importance of firming up the nation's supply of these materials and announced partnerships with several companies to boost the domestic supply of these critical materials.

One such company identified in the announcement is MP Materials, which will receive $35 million in funding from the Department of Defense in pursuit of "establishing a full end-to-end domestic permanent magnet supply chain." According to the company, it's the only integrated rare earth mining and processing site in North America, making it a key player in the initiative to secure the nation's supply of these important materials.

Illustrating how the company is smack-dab in the middle of growth mode, MP Materials announced fourth-quarter 2021 results last week that featured its achievement of generating record revenue in 2021: $332 million, a year-over-year increase of 147%. Additionally, MP Materials reported fourth-quarter 2021 net income of $49 million, setting a quarterly record for net income.

It's not only in the financials where investors can see it growing, however. MP Materials reported a 28% increase in its estimated rare earth oxide reserves, adding 11 years to the estimated mine life of Mountain Pass, which is now expected to operate for another 35 years. Add to this the fact that the company recently signed a long-term supply agreement with General Motors -- a deal that can certainly be a harbinger for similar deals with EV-makers in the future -- and the attractiveness of MP Materials becomes all the more apparent.

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>>> Lithium Is in Short Supply — But Probably Not for Long

Given the demand from electric-car makers, suppliers and governments are bound to mine more of it.


Bloomberg

By Liam Denning

January 26, 2022


https://www.bloomberg.com/opinion/articles/2022-01-26/lithium-is-in-short-supply-but-probably-not-for-long?srnd=premium


A cautionary saying in oil circles about the possibility of peak demand holds that “the stone age didn’t end for a lack of stones.” When it comes to electric vehicles, there is more concern now that the electric age will fizzle for a lack of lithium.

Lithium-ion batteries power smartphones, laptops — and electric vehicles. When I wrote this back in 2016, analysts at Citigroup were speculating about the transformational effect on lithium demand if, in 2020, battery-EV sales were to hit 1 million. As it turned out, more than 2 million were sold that year — and almost 5 million in 2021, not including plug-in hybrids.

Electric Shock

Sales of electric vehicles have blown away expectations in the past few years and look set to surge even higher

There was more than enough lithium to meet that extra demand — so much so that prices began sliding in 2018 and didn’t bottom out until 2020. But since then prices have surged. Battery-grade lithium carbonate in China hit more than $40,000 per ton in recent spot trades, according to Benchmark Mineral Intelligence, a London-based data and market-intelligence provider, up from less than $6,000 18 months ago. Even if prices paid under long-term contracts haven’t risen as fast, it’s clear the market has tightened drastically.

Lithium prices have become more volatile in recent years and just hit a record

Political risk also appears to be rising. Serbia just blocked Rio Tinto Plc’s plans to develop what would have been Europe’s largest lithium mine, following widespread protests. In Chile, the world’s second-largest supplier, the election of a young, left-wing — and, it seems, Swiftie — president, who has called for the creation of a national lithium mining company, has raised concerns about future projects there.

Predictions of a looming shortage in lithium have been heard for years, but they’re now becoming consensus. There’s some irony in the way that fans of oil and boosters of its apparent nemesis lithium both warn that a dearth of investment will fuel shortages and painful price spikes. It’s important to remember that the dynamics here are familiar, even though the context of the energy transition is new.

“It’s kind of a ‘duh’ moment,” says Emily Hersh, a lithium expert who is now the chief executive officer of the exploration and development company Luna Lithium Ltd., referring to longstanding expectations of a shortage. But, she adds, “lithium is cyclical like any other commodity.”

There is no actual shortage of lithium resources per se; it’s all a question of economic and political support for development. I remember the nervous mood at a lithium conference back in 2018, when some predicted that South American producers would quickly tap their reserves and swamp the market. This cycle of hope and despair is familiar to anyone who has watched, say, the oil market over decades — and it is indeed a vital, if sometimes destabilizing, driver of investment. The recent rally and creeping panic about shortages is needed to spark activity and ward off those shortages.

Similarly, while political risk may be rising, the issue is too complex to describe by saying, for example, that a left-wing government in Santiago portends doom. In Chile’s case, the long lead times needed for project development and the licenses already held by incumbent operators suggest that even an energetic new president would need time to have a big effect on supply. Hersh, who lived in South America for years, also cautions against reading too much into what Chile’s politicians say. While that country is vital to lithium supply, lithium is only a tiny fraction of Chile’s economy — unlike copper, for example — and that makes lithium an easy political talking point as the debate over a new constitution heats up.

Serbia’s sudden move against Rio, meanwhile, should be viewed in the context of upcoming elections there. As frackers discovered in the U.S., commodity producers must protect their social license to operate if they’re to avoid a backlash. Lithium may be vital in terms of tackling climate change; but that doesn’t give the industry a free pass to disregard problems associated with brine-water management and the usual concerns with mining.

Above all, political risk is embedded in energy of all types. Have you heard anything lately about Ukraine and Russia and Europe’s gas flows? Or about the Middle East? Decades, and trillions of dollars, have been spent building and defending supply chains for oil. Lithium and other critical minerals will require their own security arrangements. It’s a problem that needs to be addressed, yes, but it’s not exactly a novel one.

One structural problem that the EV boom faces sets it in contrast to traditional vehicles. When automobiles became popular a century ago, the oil industry supplying them was already quite well-developed; Standard Oil was broken up in 1911. Crucially, oil producers were looking for a new outlet as the electric light killed demand for kerosene lamps. So the marriage of the automobile with gasoline occurred at a time when there was already a surfeit of fuel (and fixed capital) looking for a market.

A hundred years on, the marriage of the automobile with lithium involves the simultaneous development of both EVs and the supply chain of minerals for their batteries. In addition, Morgan Bazilian, director of the Payne Institute at the Colorado School of Mines, points out that pricing for lithium remains largely opaque (as it does for the carbon emissions that EVs are supposed to address). That exacerbates an already enormous challenge: turning over the world’s fleet of more than a billion vehicles to electric models. Benchmark Minerals estimates that meeting the targets set at last year’s COP 26 climate conference would require 17 times more lithium than was produced in 2021.

Let no one doubt, therefore, that over the next few decades we are going to need a lot more lithium. The inherent bullishness of that situation is reason enough to think that suppliers and governments will find a way to tap it.

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>>> Chinese rare earth minerals are ‘a national security risk’: Sen. Mark Kelly


Yahoo Finance

by Akiko Fujita

January 21, 2022


https://finance.yahoo.com/news/chinese-rare-earth-minerals-are-a-national-security-risk-sen-mark-kelly-141923102.html


The Biden administration’s push to reduce U.S. reliance on Chinese imports has renewed domestic efforts to produce rare earths minerals, critical to the production of electric vehicles and electronics.

A new bipartisan Senate bill is aiming to accelerate that timeline, by banning defense contractors from sourcing those materials in the first place.

In an interview with Yahoo Finance Live, the bill's co-sponsor Sen. Mark Kelly (D, AZ) called Chinese rare earth minerals "a national security risk" and urged the Pentagon to act quickly to eliminate the metals from military weapons systems.

“We've got to stop relying on Chinese rare earths in our defense industry. It's a national security risk to us. If China decided to cut us off on those rare earth minerals right now, this would have a serious impact on our national defense,” Kelly said. “So, this requires that DOD and the Department of Interior work together to build a stockpile of rare earth minerals.”

The bill marks the latest U.S. attempt to break China’s near monopoly on a group of 17 metals that are crucial to the development of everything from smart electronic devices to wind turbines. The country controls nearly 80% of rare earths imports, according to data from the U.S. Geological Survey, while the U.S. claims just one rare earth mine and has no capability to process the minerals.

Last month, China moved to strengthen its hold on the market by consolidating key producers within a new conglomerate to double down on the development of mines in China.

Kelly’s legislation, known as the Restoring Essential Energy and Security Holdings Onshore for Rare Earths Act of 2022, specifically calls for the U.S. Department of Defense and Interior to develop a strategic reserve of rare earths and products large enough to meet the needs of one year, by 2025. It also bans the use of Chinese metals in sensitive military systems by 2026, and requires defense contractors to track and disclose the origins of the metals used in equipment it delivers to the Pentagon.

“This sets the parameters, to put the United States in a position that we have to choose to do this. We build this stockpile, defense contractors will have access to it, and we will build the supply chain of rare earths that we need,” Kelly said. “We don't want to continue to be in the situation where our adversary, could cut us off from things that we need for our national defense.”

The U.S. has been here before.

For decades, the only rare earths mine in the country is in Mountain Pass, California, and it has dominated global supply. But, concerns around its environmental impact, treatment of workers, and regulation slowed output in the 1980s.

That coincided with China’s aggressive move to capture global market share through government subsidies, lax environmental standards, and lower labor costs. By 2010, China accounted for 97% of global rare earth supply.

Over the years, Beijing has sought to use its leadership in the metals space as leverage in geopolitics. In 2010, China halted all rare earths exports to Japan, after the country detained a Chinese fishing captain near disputed islands in the South China Sea. Later that year, China slashed its export quota for the metals to protect domestic supply, inflaming trade ties with the U.S. and its allies.

But U.S. attempts to revive its domestic metals industry have been fraught with challenges. Fears of a rare earth shortage prompted Molycorp Inc. to reopen the Mountain Pass mine in 2010. That same year, the company listed on the New York Stock Exchange, only to see its price collapse. Poor investment decisions ultimately led to its demise, with the company filing for bankruptcy five years later. Las Vegas-based MP Materials (MP), which bought the mine in 2017, has been attempting to revive domestic production since.

The Biden administration’s larger focus to reduce U.S. reliance on Chinese supply chains, may provide a tailwind to the industry. Last year, the president signed an executive order, calling for a review of the domestic supply chain on critical resources, including rare earths and electric car batteries. This fall, the U.S. Department of Energy announced $30 million in funding to national labs to build out materials critical to clean energy technology.

Kelly said his legislation will push the U.S. to double down on those efforts.

“We do not have a significant enough supply here in the United States today. And this legislation will fix that,” he said. “We can build this strategic reserve of rare earth minerals over time if we focus on it. And if we choose to do it.”

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>>> China Rare-Earths Pact Spurs Speculation of Bigger Consolidation


Bloomberg News

December 19, 2021


https://www.bloomberg.com/news/articles/2021-12-20/china-rare-earths-pact-spurs-speculation-of-bigger-consolidation?srnd=premium


China seeks to build industry giants to gain pricing power

China Rare Earth Holdings shares jump 15% in Monday trading


A tie-up between two rare-earths companies is throwing a spotlight on China’s efforts to build industry giants to gain better pricing power in global markets.

China Northern Rare Earth (Group) High-Tech Co. announced over the weekend an agreement with China Rare Earth Holdings Ltd. to cooperate in mining, trade and deep processing operations. Shares of China Rare Earth soared as much as 15% in early trading Monday, while China Northern climbed as much as 4.5%.

While the cooperation pact included few specifics, it’s raising speculation of further restructuring in the industry. That will be in focus as a rare-earths industry forum kicks off in Baotou, China, on Monday.

The government has been restructuring the industry for years, seeking to consolidate all its rare earth miners and processors into two huge firms, one in the north and one in the south. China hopes to maintain its dominance in the production of the strategic metals, of which it controls 70%, as the U.S. and Europe look to develop their own production and supply chains and diversify away from China.

The importance of the materials, ubiquitous across a range of applications from consumer goods to military gear, was highlighted in 2019 as China considered whether to use its dominance as a counter in the trade war with Washington.

Demand for rare earths is rising, driven by growing need for permanent magnets, which include the NdFeB variety, found in everything from phones to computers to cars. Prices of neodymium and praseodymium, -- two of the 17 rare earth elements that are used in NdFeB magnets -- surged to the highest in a decade earlier this month.

Today’s Events

Rare earths industry forum in Baotou, China

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>>> VanEck Debuts Green Metals ETF


Yahoo Finance

by Heather Bell

November 11, 2021


https://finance.yahoo.com/news/vaneck-debuts-green-metals-etf-144500923.html


Today, VanEck Global rolled out an ETF that focuses on companies that produce, process and recycle the metals that are used in the transition to a low-carbon economy. The VanEck Green Metals ETF (GMET) holds companies that generate at least half of their revenues from green metals or have the potential to do so based on their green metal mining projects.

The new fund lists on the NYSE Arca and comes with an expense ratio of 0.59%.

GMET’s underlying index includes companies producing metals such as copper, cobalt, lithium, nickel, zinc and rare earths metals, according to Brandon Rakszawski, VanEck’s head of ETF product development. The metals are used in clean energy technology such as wind and solar energy, as well as lithium batteries.

While the methodology of GMET targets green metals, it does not include any ESG screens or requirements, selecting companies solely based on their business activities.

“It's a sustainable investment in the sense that this energy transition just simply can't happen without green metal,” said Rakszawski. “These companies are poised to benefit from that transition.”

The prospectus notes that the fund can invest in foreign securities, including those in emerging markets, as well small- and midcap companies. At launch, GMET’s index had 44 securities, with top holdings including Freeport-McMoran, Glencore and Ganfeng Lithium. China has the largest weighting in the index at 32.2%, more than twice the weight of Australia, the second most heavily weighted country.

Interestingly, at a time when many investors are looking askance at China, the prospectus specifically mentions that the fund can hold A-Shares issued by Chinese companies.

“We very much think that China's critical to the space. It’s such a major player and we want to ensure we're providing comprehensive exposure to this investment thesis in this segment of the market,” Rakszawski said.

VanEck already offers the $1.1 billion VanEck Rare Earth/Strategic Metals ETF (REMX), but Rakszawski describes the overlap as “modest” and estimates that it’s less than 20% of their portfolios.

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>>> There’s a Fortune to Be Made in the Obscure Metals Behind Clean Power


Bloomberg

By Andrew Janes, David Stringer and Adrian Leung

September 21, 2021


https://www.bloomberg.com/graphics/2021-materials-silver-to-lithium-worth-big-money-in-clean-energy/?srnd=premium


The era-defining shift from fossil fuels to clean energy will deliver an unprecedented new boom for commodities—and an opportunity for investors—as a range of relatively obscure materials become essential to delivering emissions-free power, transport and heavy industry.

The transition could require as much as $173 trillion in energy supply and infrastructure investment over the next three decades, according to research provider BloombergNEF, and will reverberate from lithium-rich salt flats in Chile to polysilicon plants in China’s Xinjiang region.

As electric vehicles supplant gas guzzlers, and solar panels and wind turbines replace coal and oil as the world’s most important energy sources, metals like lithium, cobalt and rare earths are on the brink of rapidly accelerating demand, along with more familiar industrial materials like steel and copper.

Primary Energy Supply by Source

*The New Energy Outlook (NEO) is BloombergNEF’s annual long-term scenario analysis on the future of the energy economy. Green Scenario is a net-zero pathway where green hydrogen complements greater electricity use, recycling and bioenergy.

“The energy transition is driving the next commodity supercycle,” said Jessica Fung, head strategist at Zug, Switzerland-based Pala Investments Ltd., which funds mining projects tied to decarbonization. “It is a decades-long transition, but the time to invest and make money is this decade. The time is now.”

Prospects for technology manufacturers, metals producers and energy traders are immense, while regular investors are already benefiting. Numerous clean-energy stocks have more than doubled in value since the start of 2020, and the emergence of futures contracts for battery materials and a proliferation of initial public offerings in the sector will extend options to gain exposure.

Though shifting demand patterns are being signposted far in advance, project developers urgently need to secure capital for new mines or production lines. Efforts to lift supplies of key raw materials—which can require years of exploration and construction—must begin now to keep pace with future requirements. That pressure could be most pronounced for EV charging infrastructure and lithium-ion batteries, which face steep growth curves, though more established solar and wind sectors have been challenged this year by pricier commodities.

Failing to act fast enough could even risk an economic shock comparable to the oil crises of the 1970s, said Robert Johnston, an adjunct senior research scholar at the Center on Global Energy Policy at Columbia University in New York. Concerns about future bottlenecks are reflected in the eye-watering gains of some green stocks. “I don’t see an easy solution because these supply chains don’t magically appear overnight,” he said.

Critical Mineral Needs Across New Energy Technologies

*IEA assessed aluminum demand for electricity networks only; rare earths are used in electric motors, not in EV batteries.

By 2030, demand for cobalt, used in many battery types, will jump by about 70%, while consumption of lithium and nickel by the battery sector will be at least five times higher, according to BNEF. There’ll be a need for more manganese, iron, phosphorus and graphite, while copper, needed in clean energy technologies and to expand electricity grids, will also be a major beneficiary.

Four key components of the energy transition—solar panels, wind turbines, lithium-ion batteries, and EV charging units—show the complexity of supply chains required to help the world quit fossil fuels, and how the need for vast quantities of crucial metals should spur prices higher.

•••

Solar Panels

KEY METALS AND MATERIALS:

Steel
Aluminum
Polysilicon
Copper
Silver

Solar panels with the power capacity of a gigawatt need about 18.5 tons of silver, 3,380 tons of polysilicon and 10,252 tons of aluminum, according to BloombergNEF estimates.

An unexpected jump in demand for solar panels in late 2020 following Joe Biden’s victory in the U.S. election and President Xi Jinping’s vow that China would become carbon neutral by 2060 caught producers off guard.

A surge in the price of polysilicon helped throw a decade of falling solar costs into reverse, threatening to slow uptake just as several big governments were putting their weight behind it. Several new polysilicon plants, mostly in China, are now being built to try and keep up with demand.

That offers a foretaste of what could occur in the coming years if the supply of raw materials isn’t sufficient.

“We don’t think there will be fundamental shortages of solar supply because prices always drive more capacity,” said BNEF analyst Yali Jiang, referring to polysilicon. “We’re a bit more worried about other auxiliary materials in solar panel production and installation that use silver, aluminum and steel etc., considering they’re subject to the wider commodity world, which solar has less impact on.”

Solar also offers an example of how geopolitical fault lines could hamper the energy transition. China currently dominates production of solar equipment and White House sanctions related to Beijing’s alleged treatment of the Uyghur ethnic group in Xinjiang are now threatening projects in the U.S.

•••

Wind Turbines

KEY METALS AND MATERIALS:

Concrete
Steel
Glass fiber reinforced plastic
Electronic scrap
Copper
Aluminum
Carbon fiber reinforced polymers

Wind turbines and infrastructure with the power capacity of a gigawatt need about 387 tons of aluminum, 2,866 tons of copper and 154,352 tons of steel, according to BloombergNEF estimates.

Rising cost pressures have begun to impact the roll-out of wind projects, and the expiry of key subsidies in China means capacity additions are forecast to drop this year from a record in 2020, according to the Global Wind Energy Council.

Denmark’s Vestas Wind Systems A/S, one of the world’s biggest turbine producers, has cut its outlook for the rest of 2021, citing rising raw materials prices and disruptions to supply chains. Prices of steel—a vital ingredient for the skyscraper-sized towers—have jumped in the U.S. this year and also advanced in China and Europe. Even as installations decline from last year’s high they’ll remain strong and surge again to reach 129 gigawatts by 2030.

“Commodities inflation is here,” said Henrik Andersen, Vestas Wind’s chief executive officer. “Beyond the next 12 months, it is now about seeing both that the projects can and will be built, and also what’s the price?”

•••

Lithium-Ion Batteries

KEY METALS AND MATERIALS:

Copper
Aluminum
Lithium (LCE)
Nickel
Cobalt
Manganese

Lithium-Ion battery storage

Lithium-ion batteries able to store 1 gigawatt hour of energy require about 729 tons of lithium, 1,202 tons of aluminum and 1,731 tons of copper, according to BloombergNEF estimates.

Supply of lithium raw materials will remain tight through 2022 as demand from the battery sector builds, BNEF said in a June report. Lithium hydroxide, the chemical favored for premium cells, could see shortages by 2027.

Limited availability of other materials is already threatening the battery sector’s ability to keep pace with the EV boom, said Yang Hongxin, general manager of SVolt Energy Technology Co., which has an agreement to supply Jeep-maker Stellantis NV. Lithium chemicals and copper foil are a particular concern, while all key battery metals have seen prices advance since mid-2020.

“The supply chain of batteries, especially on the raw material side, needs more investment,” including in new lithium and nickel mines, said Lei Zhang, chief executive officer of Envision Group, which has an agreement to produce batteries for car-makers from Nissan Motor Co to Renault SA.

Battery ingredients nickel and manganese could see some of the most severe shortages later this decade, said Kwasi Ampofo, head of metals and mining at BNEF. There’s enough mined material, but a lack of capacity to process those metals into specialist chemicals could pose problems, he said.

Price swings are a bigger concern in the battery sector because EVs are still approaching cost parity with combustion engine vehicles and higher costs could have an effect on adoption, said Daniel Quiggin, a senior research fellow focused on energy, environment and resources at London’s Chatham House.


•••

EV Chargers

A fast, public electric vehicle charger typically needs 25 kilograms of copper, while a smaller charger to use at home needs around 2 kilograms of copper, according to BloombergNEF estimates.

Automakers see EV charging units as key to convincing motorists to ditch combustion engines, yet manufacturers tasked with delivering the hardware are being squeezed by price increases and a global shipping crunch.

Installations of public chargers—along highways, in grocery store parking lots or at fleet depots—jumped more than a third last year to bring the global total to 1.36 million nozzles. Today’s cost pressures pale in comparison to what might happen later this decade, with copper demand for chargers predicted by BNEF to surge.

Charger installations are set to increase rapidly to reach 309 million connectors by 2040, when the sector’s annual investment will top $590 billion.

“We’ve seen price pressures in certain areas,” said Jane Hunter, chief executive officer of Brisbane, Australia-based Tritium, the world’s second-largest producer of fast charging units and a supplier to networks being rolled out by Volkswagen AG and Ford Motor Co. “Some of the raw components, particularly copper, we’ve seen move materially.”

EV charging infrastructure could be most exposed to raw material shortages, BNEF’s Ampofo said. China—which has more public connectors than the rest of the world combined—is adding chargers at a breakneck pace, while the latest U.S. infrastructure plan allocated spending in that direction and companies including Tesla Inc. and BP Plc have made big commitments, he said.


•••

As the energy transition supercycle gets closer, a major question is whether miners, financiers and governments can mobilize enough capital fast enough to bring on new supplies in line with demand. That means raw materials and the companies that produce them should offer higher returns—though also more risk—than component manufacturers, equipment makers or electric car producers, according to Pala’s Fung.

“It doesn't matter what battery chemistry you have, lithium is needed across all of them, and nickel is needed in many of them,” she said. “If it's solar or wind or EV charging units, you need copper to connect it all together—that’s why we like looking at these commodities.”

The world’s biggest mining firms, including BHP Group and Glencore Plc, are emphasizing their links to clean energy, while smaller competitors are surging. Lithium producers including Pilbara Minerals Ltd. and Orocobre Ltd. are advancing faster this year than battery giants like Contemporary Amperex Technology Co. and are among the top performers in the Bloomberg Electric Vehicles Total Return Index.

Still, green-focused equities have stumbled before. Valuations of solar equipment makers plunged from a 2007 peak, and lithium miners suffered more than two years of losses through early 2020 before resuming gains.

Investors need to carefully time moves to add exposure to the energy transition theme, said Camille Simeon, a Sydney-based investment manager at Aberdeen Standard Investments, which manages global assets worth about $635 billion. They should also be prepared for cyclical price swings that impact almost all commodities, and be wary of frothy valuations.

“It’s very clear that demand is accelerating for the raw materials that go into those products,” she said. “You also need to consider, because we are talking such a long-dated timeframe, how plausible and realistic is that, and how much do you want to pay for that at this point in time?”

With assistance from: Dan Murtaugh, Annie Lee, Krystal Chia, Will Mathis

Edited by: Alyssa McDonald, Isabella Steger and Jane Pong

Photo editor: Elaine To

Methodology

EV Chargers: Calculations assume 2kg copper per connector for home chargers; 7kg for public (slow) and work; 25kg for public (fast), bus and truck (public), bus and truck (depot)

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>>> Pilbara Minerals Limited (PILBF) explores for, develops, and operates mineral resources in Australia. The company primarily holds a 100% interest in the Pilgangoora lithium-tantalum project located in the Pilbara region of Western Australia. The company was incorporated in 2005 and is headquartered in West Perth, Australia. <<<

>>> The world’s biggest mining firms, including BHP Group and Glencore Plc, are emphasizing their links to clean energy, while smaller competitors are surging. Lithium producers including Pilbara Minerals Ltd. and Orocobre Ltd. are advancing faster this year than battery giants like Contemporary Amperex Technology Co. and are among the top performers in the Bloomberg Electric Vehicles Total Return Index. <<<


https://www.bloomberg.com/graphics/2021-materials-silver-to-lithium-worth-big-money-in-clean-energy/?srnd=premium

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>>> U.S. looks to ease China’s monopoly on rare earths


Market Watch

March 12, 2021

By Myra P. Saefong


https://www.marketwatch.com/story/u-s-looks-to-ease-chinas-monopoly-on-rare-earths-11615568838?siteid=bigcharts&dist=bigcharts


‘Grab a bucket and get busy,’ expert tells rare-earth investors


Rare-earth metals are used to make just about everything, from smartphones and display panels, to speakers and televisions, and while China currently dominates the market for these commodities, the U.S. has taken interest — and resource investors should too.

These rare-earth elements haven’t spent much time in the investor spotlight, but “Covid has been a wake-up call for secure supply chains for strategic metals needed for our most advanced critical technologies,” says Jeb Handwerger, editor of Gold Stock Trades, which tracks the junior mining exploration and development sector searching for new deposits.

Rare earths refer to a group of 17 elements that have a variety of uses, including lanthanum, used in oil refining, praseodymium for aircraft engines, and neodymium, used to create permanent magnets that have many applications.

Among the most highly prized are the “magnet feed” rare earths: neodymium and praseodymium, says natural-resource expert Sean Brodrick, an editor at Weiss Ratings. “They are critical for high performance magnets used in cellphones, electric vehicles and wind turbines,” he says.

Demand for these powerful magnets are poised to see sharp growth in the next decade. Rare-earth magnet applications are forecast to account for roughly 40% of total rare earth demand by 2030, compared with an estimated 29% in 2020, according to commodity analysis provider Roskill.

The VanEck Vectors Rare Earth/Strategic Metals exchange-traded fund REMX, +3.05% climbed by more than 63% last year and is up about 14% this year.

China has about 70% of the world’s known rare-earth reserves, the most in the world, says Brodrick. China also has announced that it will boost its mining quotas in the first quarter of this year by nearly 30%, which indicates “strong and rising demand,” he says.

With its tight grip on the world market for rare earths, it’s no wonder that China in the past has taken advantage of its dominance, including by considering restricting exports in its trade disputes. The World Trade Organization found in 2014 that China had set limits and duties on rare earth exports that breached the group’s rules.

Handwerger says his readers have been told for more than a decade that China recognized rare earths as the “strategic commodity over the next generation similar to oil.” He sees a “huge jump in prices coming” as China uses rare earths as a weapon.

As far as ways to invest in the market, Brodrick says he’s “riding the move higher in miners, processors and others leveraged to rare earths.” Even rare earths that are mined in the U.S. must be sent to China for processing, he says. “This is the kind of area where the U.S. government will shoot a fire hose of money at a problem, and I’m always standing by with a bucket when that happens,” implying that the U.S. will want to ease its reliance on China.

Choosing individual stocks takes a lot of research, Brodrick says, so for now, small investors should stick to the REMX ETF.

If you want to play the U.S. rare-earth market, however, investing in that ETF wouldn’t be the best approach, says Handwerger, since it’s mostly made up of Chinese rare-earth companies.

Instead, look to the juniors working with major academic institutions and the U.S. Department of Defense, Handwerger says. Rare earths are used in many defense and commercial applications. In November, the DOD announced agreements with several rare earth producers, including MP Materials Corp. MP, +0.45%, in a move to strengthen the market’s domestic-supply chain.

Brodrick thinks it’s a great time to invest in rare earth miners and processors, with a positive supply-demand picture that is set to grow more bullish over the longer term. “The U.S. government is about to throw money at companies in this industry. Grab a bucket and get busy,” he said.

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>>> NioCorp Named as a "Top 10" Mid-Tier/Junior Mining Company for 2021


Yahoo Finance

July 27, 2021


https://finance.yahoo.com/news/niocorp-named-top-10-mid-110000413.html


CENTENNIAL, Colo., July 27, 2021 /CNW/ -- NioCorp Developments Ltd. ("NioCorp" or the "Company") (TSX:NB) (OTCQX:NIOBF) is pleased to announce that it has been named as a Top 10 U.S.-based mid-tier/junior mining company by Northern Miner, a leading industry publication.

NioCorp was ranked #4 on the list of Top Ten companies in this category, which excludes coal and precious metals mining companies. The list by Northern Miner is based upon growth in market capitalization of the companies named over the past year.

"We are very pleased to receive this award, as it reflects the tremendous growth in the Company's market valuation over the past year," said Mark Smith, CEO and Executive Chairman of NioCorp. "Over the past 12 months, our market cap has increased by approximately 84%. I think that reflects very positive investor reaction to the major advancements that the team has made in the Elk Creek Project over the past year, and the fact that these advancements have brought an influx of new investors to the stock."

According to the Northern Miner article:

"NioCorp Developments (TSX: NB; US-OTC: NIOBF) is focused on developing a superalloy materials project in southeastern Nebraska. The Colorado-based company plans to produce three commercial critical mineral products at its proposed Elk Creek mine: niobium, scandium and titanium. NioCorp is also considering the production of several magnetic rare earth products at the site.

"Elk Creek would be North America's only niobium/scandium/titanium project and include an advanced materials manufacturing facility located by the proposed underground mine. The superalloy metals found at the Elk Creek project include the highest-grade niobium on the continent, and one of the largest prospective sources of scandium in the world.

"The company released a feasibility study in April 2019 that estimated average annual production at Elk Creek of 7,220tonnes of ferroniobium, 95 of tonnes scandium trioxide and 11,642 of tonnes titanium dioxide. The mine's expected lifespan is 36 years. The study pegged initial total net capex for Elk Creek at US$1.14 billion, with gross revenue of US$20.8 billion over the life of the mine.

"In April, NioCorp announced it had purchased a key land parcel associated with Elk Creek, giving the company ownership of the mineral rights to more than 90% of the project's mineral resources and mineral reserves. In June, NioCorp initiated testing of mineralized material from Elk Creek, using high-pressure grinding rolls (HPGR) technology. HPGR technology is an energy efficient and low-emission alternative for reducing the size of the ore to enable the recovery of niobium, scandium, titanium and potential rare earth products. The testing involves taking about three tonnes of drill core from the site and reducing it to the one-millimetre size required for hydrometallurgical assessment."

@NioCorp $NB $NIOBF #ElkCreek #Niobium #Scandium #Nebraska

For More Information:

Contact Jim Sims, VP of External Affairs, NioCorp Developments Ltd., 720-639-4650, [e-mail]

About NioCorp

NioCorp is developing a superalloy materials project in Southeast Nebraska that will produce Niobium, Scandium, and Titanium. Also under consideration by the Company is the production of several magnetic rare earth products. Niobium is used to produce superalloys as well as High Strength, Low Alloy ("HSLA") steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium is a superalloy material that can be combined with Aluminum to make alloys with increased strength and improved corrosion resistance. Scandium is also a critical component of advanced solid oxide fuel cells. Titanium is used in various superalloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor, and medical implants. Magnetic rare earths, such as Neodymium, Praseodymium, Terbium, and Dysprosium are critical to the making of Neodymium-Iron-Boron ("NdFeB") magnets, which are used across a wide variety of defense and civilian applications.

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>>> Why MP Materials Stock Just Popped

MP beat earnings -- but what about the cash flow?


Motley Fool

by Rich Smith

Aug 6, 2021


https://www.fool.com/investing/2021/08/06/why-mp-materials-stock-just-popped/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


What happened

Shares of MP Materials (NYSE:MP), a miner of rare earth elements, are up 3.3% at 11:15 a.m. EDT Friday after crushing Q2 earnings estimates yesterday afternoon. That's the good news.

The bad news is that at one point this morning, MP shares were up as much as 12.5%, so it actually looks as if the enthusiasm over this rare earth metals stock is dying out fast. But...should it be?

So what

Heading into Q2, analysts had forecast that MP Materials would earn a $0.13-per-share profit on sales of $58.3 million. As it turned out, Q2 profits were $0.15 per share, and sales soared to $73.1 million.

So far, so good -- and the news gets better.

Sales in the fiscal second quarter grew 141% year over year, and the company's $0.15-per-share profit -- an actual GAAP profit, by the way, not some cobbled-together pro forma profit -- reversed from last year's $0.92-per-share loss. MP Materials produced its "highest quarterly [rare earths oxide] output in Mountain Pass history," boasted CEO James Litinsky, and it's "making steady progress on our Stage II Optimization" and "on track to deliver our first full year of separated [neodymium-praseodymium, or NdPr] production in 2023."

Now what

That's important, because NdPr itself would obviously sell for higher prices and therefore be more profitable than the unprocessed oxides of the component metals. Furthermore, MP says it is making progress in "Stage III" of its operations, in which it plans to "repatriate magnet manufacturing in the United States" so that the U.S. will no longer be dependent upon foreign supply of its rare earths -- and so that MP can capture the entire value chain from production of raw materials to producing finished products.

All that being said, one thing MP Materials did not say was how profitable it expects to be over the rest of this year -- or whether it has managed to turn free-cash-flow positive yet. There's a lot of work and a lot of investment still to be done -- and presumably a lot more money to be spent.

In that regard, it's worth noting that MP did not attach a cash flow statement to its earnings release, and so for the time being at least, investors remain unaware of precisely how free-cash-flow negative the company might currently be.

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