Africa Embraces China!!

Hello everyone and welcome to Geopolitical Trends. You may ask, what is the link between China and Africa? The answer depends on whom you ask, yet many observers agree that the shift in the global order is paving the way for China to eventually increase its presence there. The next question is, what's in it for China? The answer is lithium. Against this backdrop, BRICS summit was just concluded in South Africa, with the admission of new members. How will this shape the geopolitical and economic trajectory of this bloc? Will it make a difference when it comes to the global economy? Or will it be nothing but a bravado? It speaks volume when considering 23 countries officially submitted their application to join BRICS. Among these countries are countries from the Arab world, including Bahrain, Palestine, Kuwait, Morocco, Saudi Arabia, United Arab Emirates, Algeria, and Egypt. Interestingly, some of these countries are considered rich in oil, for example, Saudi Arabia, Algeria, Kuwait, and United Arab Emirates. Of interest in this conversation is Saudi Arabia, and the reason being is electric vehicles. When considering the energy market and the fluctuation of oil prices, many countries are considering switching to electric vehicles, known as EVs. This outcome is the result of a policy adopted by a host of countries —aiming at banning fossil fuels by the end of this decade. As a result, many energy and financial analysts agree that this change, of course, will eventually trigger a spike in the prices of lithium moving forward. Be that as it may, the admission of Saudi Arabia into BRICS did not happen in a vacuum when considering what the Saudis bring to the table. More money for the BRICS Development Bank, and of course massive oil reserves. Current estimates suggest that when it comes to lithium, China is taking the lead, mainly in consumption. As a result, its EVs production has soared. Going back to 2020, China accounted for about 64% of global demand,, with most of this demand being driven by EVs. Chinese EV, or electric vehicle, sales reached 3.9 million units in 2020, up from 1.2 million in 2018, according to the China Association of Automobile Manufacturers. Similarly, According to Reuters, China produced 395,000 tons of lithium carbonate last year, up 32.5% year-on-year, according to China's Nonferrous Metal Industry Association. Its output of lithium hydroxide climbed 29.5% to about 246,000 tons. 1,000 tons. Taking into consideration, the global consumption of lithium in 2021 was estimated to be at about, and I put this in quote, "93,000 tons, a 33% increase from 70,000 tons in 2020." End of quote. So with these stats, one argues that the demand for lithium is only going to grow tremendously moving forward. This leads me to talk about today's sponsor of this video, FE Battery Metals, ticker symbol is FEMFF. One important fact I'd like you to know about this company is that millions of dollars have been spent to get a project in James Bay region in Quebec, Canada. Its current condition is about to become the first mine operation in Canada for lithium. And that area will soon become a major hub, a center mass if you will, for lithium in Canada moving forward. That said, when thinking about a company like FE Battery Metals, a small $10 million company, becoming one of the largest landholders in this mining camp, where there is already a $2 billion lithium company. Yeah, you heard me. There is already a $2 billion lithium company there that is getting closer to begin production through processing plant after spending millions of dollars to get it to where it is today. So you ask yourself, why a small company like FE Battery Metals is in an area competing with a giant? Well, this is where you realize the business model FE Battery Metals is adopting. Let me explain. What FE Battery Metals has done is that its promising early-stage project is so close to the location of this giant company, being in the area mining for lithium for decades to come. So when the mines of this giant company are depleted, it will be forced to consolidate and acquire any promising projects close by. So what FE Battery Metals is doing basically is buying a lot of land and conducting drilling to explore for lithium. If they can find high-grade promising lithium, this Australian— and it is an Australian giant company there— will take an interest in either taking stake in FE Battery Metals or buying them out. And this is exactly the business model for FE Battery Metals. So the idea is to catch it when it's flying under the radar, before it announces any major drill results. —with the speculation and the assumption that it will find major economic quantities of high-grade lithium. And by the way, behind FE Battery Metals is a geologist who won the 2020 Yukon Award, which is an award for Prospector of the Year. He serves as a project manager for another company where he discovered and defined huge gold discovery in this area. And that gold discovery was sold in 2010 for about $139 million. The bottom line is this: FA Battery Metals has a geologist who has done this—explored, discovered, and sold the company. He was also the VP of another company that made high-grade discovery. So the bottom line is this: what we have here is the right combination, the right geologist, the right location, the small market cap, and all the catalysts ahead for potential upside appreciation. It's really an ideal setup for a venture investments in an early-stage exploration company. So what are you waiting for? You can either invest in FE Battery Metals, ticker symbol FEMFF, today, or just let this opportunity slip away as demand for lithium is only going to grow moving forward. Once again, the company is FE Battery Metals, ticker symbol FEMFF. Check it out. And remember, there is always risk in investments and there are no guarantees. Thank you.