Green Energy Metals And rEvolution – Reuters: “Tesla Expects Global Shortage Of Electric Vehicle Battery Minerals.”
Reuters joins Bloomberg in sounding the alarm that Green Energy Metals are needed to build a green and beautiful future for all us and they can not be just found on Instagram among motivation quotes and inspiring pictures. Even worse, the metals which are making all our gadgets tick are the result of very long multi-year investment cycle starting from the discovery of those metals and ending up on your kitchen table as part of the iPhone.
Needless to say, investors in the 21 century have a Twitter 20 min attention span and are not ready to match the investment multi-year cycle for mining. Junior Miners who are the main driving force behind discoveries and supply of the new discoveries for Majors are starving for capital and demography is not helping as well here. Millennials are chasing Crypto Bubbles and Gold Bugs are literally dying out.
And as the final blow to this uncomfortable discovery, escalation of the Trade Wars will bring the realisation that China controls a lot of bottlenecks in the supply chains for critical materials, like Lithium for example. China plans very carefully and is executing with military discipline its 50 years New Energy Plan of leapfrogging The ICE Age technologies and straight into The Post Carbon Economy with electric cars, solar and wind.
Copper and lithium will power Tesla Energy rEVolution for years to come, but if you look at the junior mining space you will hardly notice this excitement coming from electric cars and numerous developments in this space this year. We have a total disconnect between billions of dollars invested by OEMs into electric cars, charging networks and lithium batteries production facilities; and total lack of capital for copper and lithium developers and junior miners. How to cross this digital divide and finance Tesla Energy rEVolution supply lines? We have discussed it at length among our strategic initiatives at TNR Gold.
Here where our GEM Royalty business model is coming into play at TNR Gold. We do not have to dilute our shareholders like there is no tomorrow at the most unfortunate time in the market place. We are holding NSR Royalty on Mariana Lithium JV with the giant from China Ganfeng Lithium as Operator and NSR Royalty on Los Azules Copper with McEwen Mining. We do not have to contribute to any CAPEX for these project’s development and we do not have to raise capital in order to do so when Mr Market is still trying to figure out the valuations for the lithium and copper developers.
Bloomberg brings copper into the headlines again with their analysis of “bullish spirits” observed among analysts at the industry event last week. This is not even a rhetorical question for all insiders: “A Million Tons of Copper Is on the Way – It May Not Be Enough”. It can be pronounced with certainty – it will not be enough. I will go here with Goldman Sachs this time. Two major trends are colliding which will define the supply and demand for the Green Energy Metal. We have exponential growth of sales for electric cars, charging, solar and wind energy systems. And lack of new discoveries and head grade going down across all copper industry.
Red metal goes green in the Tesla Energy rEVolution. Goldman Sachs now estimates that copper will be in structural “severe deficits” starting from 2023. And it is happening even before The Switch – the real mass-scale transition to renewable energy generation and when electric cars will affect millions of households all over the world. Despite stormy markets, the smart money was buying all the best copper projects last year. Only new copper giants like Los Azules Copper project under operation by the legendary McEwen Mining can bridge the coming very soon huge supply gap.
Visual Capitalist presents a brilliant illustration of copper place in the energy rEVolution and particularly in electric vehicles. Smart Grids connecting renewables like Solar and Wind with the grid and charging infrastructure for electric cars will bring another drive for copper demand for very many years to come. Green Energy Metals Royalty Company TNR Gold holds 0.36% NSR Royalty on the entire Los Azules Copper project in Argentina and you can find more information about it in our presentation below.
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