Read on to learn what trends and challenges could be ahead for North America as it races to secure supply of key raw materials for its growing EV industry.
Key raw materials used to power electric vehicles (EVs) have become the center of attention lately, with governments taking notice of how essential they are for the green transition.
Metals such as lithium, cobalt and nickel are making news headlines globally as the western world continues to build out and strengthen its supply chains.
In North America, governments have called for more domestic sources of raw materials, as well as local processing of essential minerals used in lithium-ion batteries; they have also made partnerships with allies a crucial part of the move towards more independence from China.
Last week’s top-gaining mining stocks on the TSXV were Argentina Lithium & Energy, West High Yield Resources, Tsodilo Resources, Fancamp Exploration and Arena Minerals.
The S&P/TSX Venture Composite Index (INDEXTSI:JX) took a tumble last week, sinking from its opening point of 940.63 to close on Friday (July 16) at 907.68.
The Bank of Canada held its key interest rate at a record low of 0.25 percent last week and cut its weekly net purchases of Canadian government bonds to a target of C$2 billion.
It also shared a largely optimistic outlook on the country’s economy, saying that the threat of COVID-19 is waning, although inflation is likely to stay hot in the near term.
The US currently produces no graphite, and many are wondering if graphite mining in the US will happen. Here’s an overview of the situation.
The establishment of a US graphite-mining industry has enjoyed increased interest in recent years thanks to expected growth in demand for electric vehicles.
China is the top producer of graphite by far, but for various reasons it’s not particularly easy or desirable to invest in companies mining graphite there.
Many investors are instead looking to North America for graphite opportunities, especially since Tesla’s (NASDAQ:TSLA) announcement that it plans to source the lithium, graphite and cobalt it needs for its Nevada-based gigafactory from companies working on the continent. In 2015, Tesla backed up that statement by signing two lithium supply deals with companies whose projects are in North America.
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Interest in cobalt has increased in recent years due to its use in the lithium-ion batteries used to power electric cars.
The Democratic Republic of Congo (DRC) is the world’s largest producer of cobalt by far, with its output reaching 95,000 tonnes last year almost 60 percent of global supply.
For investors who want to learn more about the sector, here’s an overview of the world’s largest cobalt mines, according to the most recent data from S&P Global Market Intelligence.
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