Rare Earth metals have become more important than oil. Discerning investors can profit with Louis..

Another good example would be the magnets, you know, that are made for, you know, the tiny magnet in the speaker in our smartphone would be similar to the magnets in wind turbines. And so, you know, besides semiconductors, these magnets are the most in demand. China has about 6 big factories producing about 400,000 metric tons of magnets every year.

From Battlefield to Boardrooms: The Strategy Playbook for Metals. Well, what if the key to wealth wasn't actually stocks or real estate, but the raw materials that power every industry from smartphones to fighter jets? Today's guest reveals how private investors can own the invisible backbone of the global economy and why this asset class thrives during chaos. Welcome all you beautiful people and enlightened investors to Streams to Impact. I'm your host, Dr. Allen. I'm a psychology professor, impact investor, and the founder of Stetaker Capital. Stetaker Capital provides the one-stop service to to passively invest in assets with significant growth potential, some clients projecting growth of over $15 million in 20 years. Streams to Impact, our podcast, brings together top investors, educators, and strategists to help you grow wealth that's stable, scalable, and aligned with your long-term vision. Today's episode is all about the untapped asset class that powers everything from iPhone to national defense. And trust me, this conversation will change how you think about safe investing. So just a brief disclaimer, all information shared on Streams to Impact is for educational purposes only. It is not to be construed as investment, financial, legal, or tax advice. All investments incur risk. You should not invest if you are not prepared to lose 100% of your investment, and you are always encouraged to consult your legal, accounting, and tax advisors before making any investment. Well, what do you get when you combine 25 years of supply chain expertise, access to the world's most critical raw materials, and a vision to democratize wealth creation? Well, you get today's guest, and he's the bridge between high-tech industries and the raw earth elements. they develop on materials so vital that nations stockpile them for security. And he is one of the few global suppliers offering private investors a backstage pass to this exclusive market. And with bank-level storage, he's built a turnkey solution for inflation-proof, high-liquidity investing. Welcome, Lewis O'Connor. We're so glad to have you with us today, Lewis. So if you would just describe the strategic metals as the invisible infrastructure of the modern world, and really, what was the inner philosophy or life experience that shaped your conviction that this is the ultimate wealth-building asset class for our time?

Okay, Alan, thank you very much for the introduction. Actually, I couldn't have said it better myself, how you spoke earlier about the raw materials that are the backbone of manufacturing in the 21st century. So I suppose the best way to give some people some sort of dive right in and get some context is, so strategic metals is an umbrella term. It's not a scientific term or It encompasses, for example, you know, in North America, for example, the US Geological Survey would list about 40 metals, maybe 45 metals that are strategic to North America's economic prosperity and of course military capabilities. So these are the metals that we sell on a daily basis. And I'll just point out like our Our activities on a daily basis, and this is probably one of the most, maybe the most important thing about us that people should know, even though it's not what we'll be talking about today. But, the most important thing people should know about us is we're an industry supplier of these raw materials. So, we've about 45, 50 people in the office, and 85% of our activities are we're buying these raw materials, Mostly from China. China has a sort of a monopoly on this industry and has had for some, some time and will have for some time longer. And as we discussed earlier, there's talks in London right now today as we speak between the US and China about these rare earths and about China lifting some export restrictions. But these are the metals that we buy on a daily basis and we sell then to more than 4,000 different clients in 74 different countries. So, manufacturers, industry buyers. So, we're a tier 1 supplier to many, many blue-chip companies, which is something I can share with people if they want to take a deeper dive. So, the reason I mentioned that and why it's so important is if we were just some sort of a sales and marketing company, then you know, there'll be red flags everywhere. Because when you're talking about a raw material that might end up in an F-35 fighter jet or a Boeing, you know, there's— the chain of custody is very, very important. So, you can only deal with people who are in the industry. And that's what we are. That's our DNA. We've been doing that for 25 years. However, for the last 15 years, we've had a little— what you guys in America might call a side hustle. A side business. And what we do is we invite private investors to participate in the supply chain. We invite them to safely enter the supply chain and safely exit. We also have a practice of repurchasing the metals or mediating a sale to an industry buyer. So the, the only reason we can safely do this is because we're a globally recognized global supplier of these raw materials. And how I sort of became involved, the business was there before I came along. I work mostly with private investors and with other people that work with the industry. Is when I heard their story, when I learned that, when I was armed with the facts, I suppose might be a good term. And that is that rare earths are the upstream raw materials that become trillions of dollars in downstream GDP. There are supply bottlenecks, supply risks. As you know, in the case of China, there's a very heavy localized production. There's other factors that come into it that make them profitable to own as physical assets. What I've learned is the only obstacle to private investors profiting from rare earths. They literally don't know they can. So as you could say, it is a relatively new asset class because we've only been offering them to private investors for about 15 years. And as I mentioned earlier, we're also based in Europe. So not that it was exclusive to Europe, we've lots of clients in the US, but it grew first of all in the— we're in Central Europe in Frankfurt. We have 2 offices in Frankfurt, and we have another facility, which is a distribution logistics platform where we store the metals at what used to be a bunker in World War II, 2 levels below ground, one above. So yeah, I hope that answers your question.

Yeah, that gives us kind of a basic understanding of what What they are and a bit of a process in terms of how that works. So I guess the next question that I have is there's 40 metals that are critical to US industry and certainly to US defense. How many of those are available in the US as raw materials? And and how many of those are actually in production in the US?

Very good. Yeah, excellent. Very good question, Alan. So, so I'll use, I'll use gallium and maybe hafnium as a case study or as an example. Gallium is needed in semiconductors. So, so computer chips. And would you believe 98, maybe even 99% of the world's gallium is processed in China? So Europe, and the US are completely dependent on China for raw material. You know, for example, computer chips. You could say, you know, in fact, people have already said with this trade technology war between sort of China and the US, you could call it the Cold War 2.0, except it's not an arms race, it's a semiconductor race. And make no mistake, China has all the raw materials. Similar with hafnium. Hafnium is a byproduct of zirconium. So for every 50 tons of zirconium, you only get 1 ton of hafnium. So there's only about 70 or 90 tons of hafnium produced a year. But hafnium is a critical element. It's used as a super alloy in jet engines and in rods for nuclear reactors and space technology. Well, rocket engines as well. So it cannot be substituted. So you have a raw material where there's only about— there's only enough produced every year that you could probably fit on the back of a big truck, and you have one country that completely dominates it. But just to zero a bit more in on your question, which is out of those 40 metals that are on that list, we sell all of them pretty much to industry buyers, right? However, We only offer at any moment in time about 8 or 10 to private investors. And the reason for that is they're not all relevant as physical assets. Some of them are not all that rare. And, you know, even though they're critically needed, there's no problem in getting them and the US would have access to them. So what makes one relevant as a physical asset? There's 4 characteristics that we used to determine that. And what they are is one, we look at which of these raw materials actually have the most applications. Most of them do have multiple applications. So we look at which ones are in, which one is considered a defense metal, an energy transition metal, a technology metal, rare earths. So that way the client, we know it's relevant because the client has a lot of diversification. If they own that one raw material, they're invested in many, many different industries. They own the raw material that Apple needs, that Tesla needs, and so on and so forth. So that's the first characteristic. The second is what you might call the quantitative approach, which is which ones are actually the rarest and which ones are the least available. Hafnium, I just gave an example of, 70 to 90 tonnes is a good example. That's a very small amount. So we look at the ones that are least available. And then we look at the qualitative approach, which is which ones are in actually in the most demand at the moment. One good example would be, you know, the big demand driver coming is artificial intelligence and advanced robotics. And, you know, of course, AI runs on data, but it relies on rare earths for magnets, sensors, chips, you know, to power these data centers. So yeah, which ones are the most in demand? And then the final thing we look at is which ones, where is there a supply concentration risk? Where is there a very, very heavy localized production? And I use China as an example. It's not always the case. Sometimes it might be Russia, it could be South Africa, but those are the 4 characteristics that determine which ones we feel are qualified to offer to private investors. And the proof is in the pudding. If somebody goes to our website, you can look at the historical prices and the gains and see how, how well investors have done.

Well, is production primarily in China because that's where the minerals are, or is it because China has developed the infrastructure to process them?

It's because China has developed the infrastructure. You know, China at the moment is weaponizing rare earths. I mean, as we pivot from oil to metals, rare earths are the new frontline, if you will, in geopolitical decision. That's why these talks are going on in London. And we sort of handed them the ammunition. I mean, us in Europe and North America, by allowing, you know, let's say over the last 25 years, when the world was high, if you will, on the globalization drug, We just allowed it to happen, and and I think it's probably fair to say as well China possibly understood before we did how important they would be in the 21st century. So, but you're right, there's about 50% of the world's reserves in China. But the biggest producer in the North America of rare earths is Mountain Pass in California, MP Minerals. At the moment, that facility still has to sell most of their ores to China for processing because there isn't a facility that exists in North America to do that. Now, I don't want to— I don't— I just want to be careful what I say there because Mountain Pass are also building a processing facility in Texas. It might well be up and running, but it's, you know, I suppose what I'm saying is when that's up and running, That might represent 1% of the total demand that's needed. So we're a long way behind China, no matter how you look at it. Another good example would be the magnets that are made for the tiny magnet in the speaker in our smartphone would be similar to the magnets in wind turbines. And so besides semiconductors, these magnets are the most in demand. China has about 6 big factories producing about 400,000 metric tons of magnets every year. And there isn't one facility in the US at the moment in time doing that, or Europe. So we're a long way behind. And it'll, you know, that's why there's a great window of opportunity for private investors is for another 10, 15, more likely 20 years, There's going to be shortages. China will, will have an unrivaled domination. And I imagine it will change eventually, but for the next foreseeable future, it's a very good opportunity.

So, uh, the next question is, uh, how do private investors, uh, take advantage of this?

Okay, so it's exactly the same paradigm as owning gold or silver. The clients physically own the asset. So the purchase process is no— in fact, we also offer precious metals. We sell gold and silver and platinum group metals. Our expertise now, to be honest, is rare earths and technology metals, but we do also offer the precious metals as well. So it's exactly the same process. And of course, there's storage. For example, what's very important with industry metals, Alan, is the chain of custody. So when clients purchase from us, we highly recommend they store— we have a sister facility where it's a duty-free zone and it's our logistics and distribution platform. When our clients, you know, buy the metals, they, you know, have an invoice to say they own them and then they have a safekeeping receipt to show they've been allocated in the storage facility. When they're stored in our facility, our clients have access to over 4,000 clients in 74 different countries when it's time to liquidate. Whereas if they move them or ship them to another location, they're technically out of the chain of custody, and we don't recommend it because it's just going to cost a lot more. It'll eat into the investment, if you will. So what we try to say to people in the most frank and sincere way is Please don't come on board unless you're aligned with our investment strategy. And we can say that with sort of certainty because we don't have 10 different offers. We don't offer crypto. We don't offer agri. We've one thing, which is the metals. And that's the industry that we know. So, you know, we don't want uncomfortable situations with private investors. So we very sincerely and frankly outlined the strategy. And if they're aligned with it, we'd say, you know, please come on board. But if not, don't. I mean, it's not a— we, you know, we're not— look, we don't want day traders. We recommend minimum hold 3 years, 5 years even better. And we recommend you keep them in the chain of custody in a sister facility that's 100% owner-operated by us as well, although it's a separate legal entity.

So they own the actual asset and the asset is in your warehouse. But you say that it would seem like this would have to be— you'd have to be continuously moving the product in order for you all to make any money. How is it that it can sit there in your warehouse as their asset for what you're recommending is 3 to 5 years?

Okay, so good question. So yeah, we have— we are constantly moving inventory. Yes, 100% correct. However, we do offer 2 types of custody arrangements. One is sort of individual custody where everything is, you know, is segregated. And then another is what you would call collective custody, which, to give you an idea, like gallium comes in 10 kg barrels and 25 kg barrels. And gallium's at about close, maybe a little over $1,000 a kilo at the moment. So the minimum barrel purchase of gallium is $10,000. But our minimum purchase altogether is $10,000. So we might have clients buying 8 different metals for, you know, so when they buy the lower amounts, they're in what we call collective custody. And they have then, they do have an invoice and they have batch numbers and purity levels, but we could possibly sell that inventory and constantly replace it. They have a right to X amount of gallium in that case. Whether it's 1 kilo or 5. So we have both offers.

Okay. So they're actually purchasing a quantity, not necessarily an asset, just a quantity of any particular asset.

Yeah, exactly. And a right to that exact quantity in our storage facility. But that's not always the case, as I said. There's also, you know, individual custody as well, where if somebody's buying a sufficient amount, it's in a barrel in the original packaging from the producer, and it's segregated.

So I'm beginning to get the picture here as to how that works. I guess I have another question. Are these really rare metals, or is it just really They're rare because the processing is lagging behind the production.

Okay. So they're not always that rare. They're called rare earths because when they were first discovered, they were considered rare. But what does make them rare or hard to get is that they don't occur naturally in the Earth's crust. They're always a byproduct of another raw material. I mentioned hafnium is a byproduct of zirconium. So the, the, and that they're not always in, in, in, in, you know, large concentrations. So for example, you might hear, um, President Trump or the administration talking about Ukraine and Greenland and, you know, they could, the concentration could be 0.02%. So just because there's an evidence of rare earths being there, um, doesn't mean, you know, there's, you know, a million, a million tons will be extracted so that That's what's complicated and messy and expensive is that process of they have to be extracted, then they have to be separated, and then remetallized up to purity levels of, you know, 99.999% in gallium's case. So it's that process that China is very much more advanced on. They've been— China has about 28 universities graduating degrees in metallurgy, which is the process. I suppose the metallurgy is more important than the mining in this case. So for the last 30 years, China's been graduating about 200 metallurgists every week for the last 30 years. There's probably 400,000 metallurgists in China. I know what the numbers are for Europe, but just for North America, I don't, you know, I think there used to be 14 or 16 universities. That's dropped to maybe 10 or 12, but nobody's studying metallurgy either. So that's all— in the case of the US, it's in the Inflation Reduction Act. And within that, there's a CHIPS Act, and there's massive subsidies there for anyone at all to get involved in this industry, but also for education. So people can start studying metallurgy because, you know, in fact, I was talking to somebody from a university in Utah recently, a professor there, and she pointed out to me that there's 500,000 abandoned coal mines in the US, and they all have mine tailings, and there's rare earths in these tailings, but there's no technology or facility to do anything with them at this moment in time. When will that happen? I don't know, but I'd imagine we're talking—

Well, yeah, if we've— we have no one in the educational pipeline, yeah, that's going to be 10 years, 10 years at the, at the very least before production can really start coming on in the US, and that's just the educational pipeline. Involved in that. And there's not a university out there that is tomorrow just going to bring on all of a sudden a metallurgic program. Universities just don't act that way. Plus the fact that they're— who's going to teach those courses? We're going to have to bring people from China to teach those courses, it looks to me like. So lots of barriers there. The US is truly, truly behind, and I guess Europe is pretty much in the same boat.

Europe is in the same boat, yeah.

Yeah.

So what did it really take to make this possible and to bring really all of this online? You've been, been in the business 25 years and you've made it available to private investors for about 15 years. What all did you have to go through to bring that to fruition?

Yeah, well, you know, it sort of grew very, very much organically, and it was almost like our customers showed us the way. And I mean, not private investors, but our manufacturing. So we sort of, as I said, we began in 1999, but We realized fairly early on, and this is true to today as well, that there will be shortages. There will be scarcity-driven price hikes where the prices will surge. I can give you examples of that as well if you like. In the last 5 years with terbium up 500%, hafnium 250%, and most recently in the last 6 weeks, China's restrictions. So We realized the most important thing from that, from an, as an industry supplier, and this is, we would no thoughts of private investors at this stage, was what we would need in the future is inventory and fair prices. And that there would be times where there just won't be. Right now, in fact, the reason these talks are in London is there's 7 rare earths that none of them have left China since April the 4th. Already we learned that in Japan, The Suzuki manufacturer have stopped production of the Suzuki Swift because they don't have these raw materials. The talks are in London were quickly, hastily organized because if they don't solve it soon, there will be US car manufacturers in the next 3 or 4 months will have to stop production. So it's very serious stuff, you know, but we realize as a supplier then what do we need to have when this happens if China weaponizes rare earths like they are, we need inventory. So the idea then came to buy a facility, which, as I said, was a bunker in World War II, 2 levels below ground. We've now built above and we have an office, built 2.5 or 3.5-meter walls and doors. And we were going to store, build an inventory when prices were low, buy as much as we could, et cetera. And then some of our industry buyers, manufacturers, you know, who would be buying as well said, well, can we buy you? Like, if the prices happen to be, you know, like one example, there's one of our oldest clients is a thermometer manufacturer in Gießen, just north of Frankfurt, you know, maybe 200 people at the factory, not a big thing, but they've been ordering, you know, rare earths from us from day one and put an order in every month, you know. So So they wanted it to buy and store. We said, yeah, sure. And then we realized, well, look, if we can offer this to our manufacturing clients, we could invite private investors. So we obviously had to test it out legally. And we did. And it's been a success, very successful in the German-speaking region of Europe to begin. But now we've clients all over the world. And it was so that's— it was just Born from, you know, um, the, the future planning of the business, I suppose.

Well, Luis, we're at the end of our time here. Investors, you can contact, uh, Luis at his website at strategicmetalsinvest.com. And, uh, is there anything else you want to share with our audience in terms of How you would like them to get in touch with you?

No, not at all. If somebody, I can leave my email. It's louis@strategicmetalsinvest.com. Just if somebody mentions your name or your show, and I'll know who it is, and I'll be happy to. You know, we take good care of them. You know.

All righty. Well, today, Louis O'Connor showed us how the smartest investors don't just follow markets; they own the foundations. Those markets depend on. So if you're ready to explore recession-proof high-yield opportunities beyond the noise of Wall Street, Stetaker Capital works with investment providers like Lewis to provide one-stop service to diversify opportunities that align wealth with wisdom, because true legacy isn't just about returns, it's about resilience. So you can visit us at steetucker.com to start your journey, and also remember that you can go directly to Lewis at strategicmetalsinvest.com. If you've liked today's show, please take a moment to like, share, and subscribe, and leave us a rating and a review. We be greatly appreciative. So until next time, invest wisely and live abundantly.

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