WHAT’s UP GUYS, BEN HERE AND WELCOME TO MOTIVATION 2 INVEST,
TESLA is a Stock which has continued going to the moon despite criticism of a bubble like valuation.
With it’s share price now over, $1650 per share.
Some investors are hesitant to jump in the stock at such a high price…so another way to play this electric vehicle boom and exuberance is to invest into the raw materials which all these Million of batteries will require.
ELON MUSK Recently stated that
The real limitation on Tesla growth is cell production at an affordable price. That’s the real limit,” he said, adding the company would expand its business with battery-partners Japan’s Panasonic Corp., China’s CATL and “possibly with others.”
“Tesla will give a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way”
SO WHICH NICKEL MINER COULD TESLA AWARD THIS MAJOR CONTRACT to and Which Nickel Miner may they even acquire!
IN this video we’re going to find out! As I deep dive into my top 5 Nickel Mining stocks and overview why the Nickel Market could be about to BOOM!
WHY IS NICKEL IMPORTANT?
There are currently over 7.2 million EVs on the road, and, according to the International Energy Agency, the figure is predicted to reach 245 million by 2030, representing an increase of more than 30-fold.
Of course all these Electric Vehicles will require batteries.
WHAT ARE BATTERIES MADE FROM?
Two of the most common batteries, nickel cobalt aluminium and nickel cobalt manganese, use 80% and 33% nickel respectively.
Of course the More EV Batteries which are required, the more Nickel will be required and thanks to the laws of supply & demand.
If demand increases above supply, Prices of Nickel will increase.
However, there is a caveat to this
stainless steel producers are still by far the biggest consumers of the Nickel, so the price will move in tandem .
Nickel is commonly combined with other metals to produce alloys with a combination of properties that provide both ductility and strength at high temperatures.
Through its ability to withstand high heat, nickel minimizes corrosion, allowing the metal to be used for several decades without replacement. Thus, nickel is used in harsh environments such as jet engines, offshore installations and power generation facilities.
The cost per tonne dipped to US$11,000 at the end of March but has since recovered to around US$14,000 per tonne.
Economic factors will continue feed into the calculation, as will growing speculative investor demand, analysts have said.
And, of course, we should talk about Indonesia, the world’s largest nickel producer, which spooked the market by instituting a ban on ore exports.
The consultancy Roskill, which tracks metals markets, sees this as significant, and it feeds into its forecast that primary nickel consumption will increase by 4.4% a year over the next decade.
“Thus, a substantial amount of new nickel units will eventually be required to meet demand,” it said.
Top 3 NICKEL MINING STOCKS?
Now lets dive in to my top 3
The first coming at at number 3,
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VALE OF BRAZIL?
This is one of the largest Nickel Miners in the market & is actually the 2nd largest mining company in the world.
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DIVING INTO THEIR INVESTOR RELATIONS
2. Sherritt International
Sherritt International bills itself as one of the world’s largest producers of nickel from lateritic sources, and has operations and investments in Canada, Cuba and Madagascar.
Diving into the investor relations.
https://s2.q4cdn.com/343762060/files/doc_presentations/2019/06/2019-AGM-wide-screen-final.pdf
Q2.
1.Talon Metals
Base metals-focused Talon Metals’ main asset is the Tamarack nickel-copper–cobalt project in Minnesota. Which has a HIGH GRADE NICKEL DEPOSIT WHICH IS EASIER TO EXTRACT.
That is a key element as it means it’s more economical to extract.
The asset is a joint venture with Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO), and Talon has the option to earn up to a 60 percent interest in the property.
DIVING INTO THEIR INVESTOR RELATIONS:
https://talonmetals.com/wp-content/uploads/2020/07/TLO_Presentation_July_2020.pdf
BONUS: Glencore
And Now for a very special Bonus stock.
A reportedly signed deal between the Tesla and Glencore (LON: GLEN) in June has cast doubts on the company’s statement that it’s close to eliminating cobalt from its batteries altogether.
The contract would involve supplies of 6,000 tonnes of cobalt from the Democratic Republic of Congo for Tesla’s new Shanghai factory.
DIVING INTO THE INVESTOR RELATIONS FOR GLENCORE
FINAL THOUGHTS?
Overall, it’s clear that the future is going to be electric and thus there are many ways to play this Growing market.
Which stocks have I invested into?
I have actually invested into Glencore as it’s well diversified & undervalued despite having with current contracts with Tesla.
I also really like Talon Metals if you wish to invest into a high risk micro cap.
Be sure to check out my Previous Videos on Lithium Mining another great Raw Material Used by Tesla!
Currently, there are three major suppliers: Vale of Brazil, Russia’s Norilsk Nickel and international giant BHP.
https://www.proactiveinvestors.co.uk/companies/news/925730/are-small-cap-nickel-stocks-a–buy–as-tesla-ceo-sets-challenge-to-miners-925730.html
