Why Fear China's Electric Vehicles?

Hello everyone and welcome to Geopolitical Trends, where truth matters. There is no way of saying it, Bretton Woods System 2.0 is upon us. Make no mistake, the world is in the beginning phase of the New Global Economic Order. What this New Global Economic Order may look like? Well, the answer depends on whom you ask. It is evident that many countries are going back to the drawing board to figure out strategies and preposition themselves in this new global order setting. Multipolarity is here. So is the new economic order. What we are witnessing is that many countries in the Global South are pushing away the so-called developed economies aside, be they in Africa, Latin America, Africa, and Asia. These countries are asking themselves: What role can we play in this new global economic order? What political opportunities this new multipolar system will provide us? How can we prioritize our financial and secure our natural resources? These are questions that require answers when considering, for instance, the demand for natural resources like nickel, lithium, cobalt, among others, is getting very, very intense. As the world grapples with the inevitable changes to the geopolitical landscape, the economic order is witnessing a seismic change characterized, for example, by the promotion of electric vehicles, known as EVs, that has become a strategic imperative for many countries. This transition is not only a move towards sustainable transportation but also a response to the shifting sands of the global geopolitical order. Central to this transition is the role of nickel, a key commodity that significantly enhances the performance of EV batteries. Nickel's Unique Position in the Market. Unlike other critical battery materials such as cobalt and lithium, nickel is unique in its primary market drivers. Approximately 70% of the world's nickel production is consumed by the stainless steel sector, with the battery sector accounting for a modest 5%. Despite this, the properties of nickel make it indispensable for the development of high-performance lithium-ion batteries used in EVs. Nickel increases the energy density of these batteries, enabling longer driving ranges and better performance. Then comes the importance of refining and processing The effectiveness of nickel in EV batteries is highly dependent on its refining and processing. As a matter of fact, high purity nickel, when alloyed suitably, enhances the battery components' properties, making them more efficient and durable. The refining process ensures that the nickel used in batteries meets the stringent quality standards required for optimal performance. This is a critical step, as impurities can significantly affect the battery's lifespan and efficiency. What about supply chain and sustainable challenges? Well, meeting the growing demand for nickel in the EV sector presents several challenges. The current supply chain is predominantly geared towards the stainless steel industry, which complicates the shift towards battery-grade nickel production. Additionally, the extraction and refining processes need to be scaled up sustainably to avoid environmental degradation and ensure a consistent supply. Then comes the big elephant in the room: the geopolitical implications. The strategic importance of nickel extends beyond its technical properties. The global competition for nickel resources is intensifying as countries ramp up their EV production capabilities. Securing a stable supply of nickel is becoming a critical aspect of national security and economic strategy. Countries that control significant nickel reserves, such as Indonesia, the Philippines, Madagascar, Zambia, Zimbabwe, South Africa, and Côte d'Ivoire, or Ivory Coast, are gaining geopolitical leverage. The US, Europe, and China are actively seeking to secure their supply chains to support their ambitious EV targets. This involves not only securing raw materials but also investing in refining and processing infrastructure. The shift towards EVs is reshaping global trade patterns and alliances alike, with nickel playing a pivotal role in this new geopolitical landscape. Innovation and Future Prospects. To meet the growing demand for nickel in EV batteries, innovation in extraction and refining technologies is essential. Advances in these areas can help mitigate the environmental impact and, of course, improve the efficiency of nickel production. Research into alternative battery chemistries that use less nickel or find substitutes can also alleviate some of the pressure on nickel supply. Moreover, recycling of nickel from used batteries offers a promising avenue to supplement primary supply. So, developing efficient recycling processes can help create a circular economy for battery materials, reducing reliance on new mining operations and, of course, enhancing sustainability. One thing is sure: nickel's role in the transition to electric vehicles is both critical and complex. While the material significantly enhances battery performance, ensuring a sustainable and ethical supply remains a challenge. The interplay of technical, economic, and geopolitical factors make the sourcing and refining of nickel a key area of focus for the global push towards electrification. As to countries and companies who navigate this transition, The strategies they adopt for nickel supply will have far-reaching implications for the future of transportation and global geopolitics. The success of the EV revolution depends not only on technological advancements but also on sustainable and responsible resource management. Nickel, with its unique properties and market dynamics, stand at the heart of this transformative journey. This leads me to talk about this video's sponsor, Alaska Energy Metals, US ticker AKEMF. Alaska Energy Metals is spearheading the development of large-scale nickel projects in the interior of Alaska. Aiming to supply the essential strategic metal required to secure America's energy future and drive the energy revolution. Like I always say, nothing happens in a vacuum. Consider the following: Interest rate cuts are coming soon. All the market's indications and probabilities suggest the case. Barclays, for example. Barclays economists on July 12th of this year stated that they now expect the Federal Reserve to make 2 cuts in interest rates this year, in 2024, citing softening inflation and labor market data as a reason to revise its call for, from 1 cut only. Of course, November elections in the US, the presidential elections, there will be another rate cut which is forecasted. And by the way, these forecasts are also driving the price of gold to go up. Given the history of Alaska Energy Metals, its shares have never been cheaper than today. As a matter of fact, no one was able to buy Alaska shares cheaper than they are now. So for you, this is a great opportunity to take advantage of, should you decide to do so. Allow me to share with you some information about Alaska Energy Metals. The first thing I'll share with you is the financing. The first financing performed earlier this year was about $0.40. Another financing was done just in March of this year, was about $0.28 a share. Then the shares dropped by about 50%. No one in the history of this company, Alaska Energy Metals Company, that is, was able to buy shares cheaper than you can. And this is better than any accredited investor or institutional investor better than any even insider can do. The company, by the way, added 3 critical people who, by the way, are not your average individuals once you get to know their professional backgrounds. So let me explain. I'll start with the first one, Mario Vitro. Mario Vitro joined the board of directors and will be instrumental going forward. Mario co-founded K92 Mining, which employs about 1,600 people in PNG, Papua New Guinea, where the company produces high-grade, low-cost gold and trades for nearly, get this, $2 billion market cap. And with Mario comes the second person, and the second person is none other than Ian Stalker, because Mario brought Ian Stalker with him. Well, Ian Stalker was the CEO of the K92 Mining at that time. The third person is Paul Matyszak. Paul joined the advisory board You all remember Lior, right? When we did the video when we interviewed him about the investments. Well, even Lior himself worked with Paul on 4 previous occasions, all of them resulting in a massive appreciation. And these investments were all sold on an exit. What does an exit mean? An exit basically means that every shareholder's made money selling at an all-time high. So Paul sold uranium, gold, lithium companies. Paul is also a mining tycoon. Just to let you know, Paul built a $3 billion in shareholders' wealth. So having him join the company Alaska Energy Metals as an advisor is a big deal. These three individuals are what you really want to have in your company if you want to succeed and create wealth. The other aspect you need to know about Alaska Energy Metals is that it owns the Nikola project. Nikola project has a resource. The next question you're going to ask yourself: what is a resource? A resource is a ground that has been drilled. A particular amount of nickel is documented in the ground on an engineering basis. The drill's results have come up with a nickel of enough quantity and good grades. And by the way, in the financial jargon, the resource is when you have classification for your mineral that can be valued and maybe sold. Interesting, the current CEO of Alaska Energy Metals, Gregory Bichir, or Greg, was an employee of Inco. Inco company was the world's largest nickel mining company until it was bought out by a giant miner, Vale. Inco drilled on this ground and found nickel back in the 1990s. They ended up selling the project to another company in the early 2000s. This new company spent about $30 million on drilling, and by 2011, the nickel market was dead. Why do you think it was dead? It was dead because there were no EVs around at that time. And since the price was so cheap and low demand for nickel, the ground became available to Alaska Energy Metals. Interestingly, Greg, the CEO of Alaska Energy Metals, followed this project when it went back to the public domain after 25 years. Greg, the CEO, secured the rights for only $400,000 after $36 million was spent on these drills. Just to provide you with a comparison, Canada Nickel, which is another nickel company, by the way, owns 13 billion pounds of nickel in their resource. Their market cap is $212 $1 million. They had Samsung, Anglo American, and Agnico Eagle came in as strategic partners. Agnico is a $2 billion gold mining company making its way into critical and strategic metals. You can see why Samsung had to come in as an investor, because not only the nickel demand but also how critical this element is, and even according to the US Department of Energy, for electrical energy storage. And here's a shocker: do you know the United States imports 100% of the nickel it consumes? We recycle a fair bit, but are highly dependent on import. I also want to draw your attention to something else. There is a £3.9 billion indicated nickel resource at Alaska Energy Metals' Eureka deposits on its Nikola project, and an additional £4.2 billion of nickel in the inferred resource category. When considering that Canada's nickel is trading at $212 million on a £13 billion resource, there is a disconnect. Alaska Energy Metals market cap is only $18 million, but they have a resource that is close to Canada Nickel's size. This means what? Canada Nickel metal is valued more than 10 times that of Alaska Energy Metals. The question is, why? Well, Canada's nickel is more advanced. More drilling has been done. But Alaska Energy should catch up. There is no reason why this higher-grade nickel should be sold or offered this cheap. This is why those 3 savvy investors, Mario Vitro, Ian Stalker and Paul Matysek came in. And by the way, the latter is a very successful entrepreneur who built the $3 billion in shares wealth. The bottom line is this, guys, you cannot previously have bought shares of Alaska Energy Metals this cheap. Against this backdrop, there is a company called Kobold Metals. It is a privately held company that uses AI, artificial intelligence, to find lithium, cobalt, and nickel. This company, by the way, already made a giant discovery in Zambia. Initial investors in Kobold include— get this, guys— Jeff Bezos, Bill Gates, Richard Branson, Michael Bloomberg, and Ray Dalio. And by the way, Kobold bought some geological data from Alaska Energy Metals for over $100,000. I believe personally Alaska Energy Metals is one of the most promising nickel exploration and development companies operating in an attractive area with great potential for return on investment. This is an opportunity you really should check out. You can either invest in Alaska Energy Metals easily with your online brokerage account, stock ticker AKEMF. Nickel is only going to grow moving forward, and having a secure US-based source of nickel is a good thing. Once again, Alaska Energy Metals, stock ticker is AKEMF. Check it out. And remember, there is always risk in investments and there are no guarantees. As always, remember, geopolitics impact your daily life in more ways than one. Till next time.