Hey Traders!Welcome to CA Stock Corner Week 50. In this edition we are going to take a look at battery metals. Now I know that we have previously touched on this sector before, however moving into 2023 we feel that battery metals companies will see a significant bull run.
As the energy revolution continues to unfold and the electric vehicle market continues to grow there will be a greater demand for battery metals such as lithium, cobalt, nickel and graphite.
Let's take a look at the battery metals companies on our Watchlist.
Cobalt
Cobalt is a silver-gray metal that is often produced as a by-product of nickel and copper mining. It does not occur as a separate metal anywhere in the world, and must be produced by reductive smelting, or from the metallic ore cobaltite, which is made of cobalt, sulfur and arsenic.
Historically, cobalt oxides were used to impart a blue pigment to glass, porcelain and paints, hence the still-used cobalt blue paint. The metal is also used to produce superalloys, as cobalt imparts qualities such as corrosion and wear resistance, which are useful in applications such as airplanes, orthopedics and prosthetics.
Today cobalt is most famously used in the rechargeable lithium-ion batteries that run everything from smartphones to EVs. 1
Jervois Global Limited (JRV.V)
Jervois aims to become the leading global supplier of responsibly sourced cobalt and nickel materials to serve both the battery and chemicals markets, and to provide a secure, reliable supply to customers in the face of geopolitical and other risks. 2
Jervois is headquartered in Australia and cross-listed in Canada in 2017. The company has operations in multiple countries, including the US, Finland, and Brazil, and it aims to become one of the largest suppliers of cobalt to the global EV industry.
It owns the largest nickel and cobalt refinery currently in existence in Latin America. The US operation (Idaho) will be the first operational cobalt-only mine in the country.
The company generates a decent portion of its revenue from the battery market though the chemical market still retains the top spot. 3
Average price target from 4 ratings: $0.42
Average score: BUY 4
Nickel
Nickel is one of the three primary battery metals. Thanks to the global shift towards battery-dependent technologies, EVs, and solar farms, have seen an enormous surge in demand in the last decade.
Ironically, the most significant portion (about 70%) of the global nickel supply is not used for batteries but for making stainless steel.
Still, the metal has become a coveted investment thanks to its projected demand driven mainly by the EV battery industry. And one realistic way to gain exposure to this commodity is through the best nickel stocks in Canada. 5
Garibaldi Resources Corp. (GGI.V)
Garibaldi Resources Corp., an exploration stage company, engages in the acquisition, exploration, and evaluation of mineral properties. The company explores for nickel, copper, cobalt, platinum, palladium, gold, and silver deposits. It holds interests in the Red Lion; Grizzly and Golden Bear; King and King South; E&L; Palm Spring; Sid, Sunrise and Atlin; Black Gold; and Tora Tora properties located in British Columbia, Canada. Garibaldi Resources Corp. was incorporated in 1993 and is headquartered in Vancouver, Canada. 6
Average price target from 1 ratings: $$0.55
Average score:BUY 7
Lithium
Lithium is an elemental metal that's become widespread in our technology-driven world. Among the more notable of its uses is the manufacturing of rechargeable batteries for both electric vehicles and renewable power sources, such as solar and wind.
Rechargeable battery production, however, is only one use for this versatile metal. From consumer electronics, such as laptops, tablets, cellphones, and digital cameras, to products that use non-rechargeable batteries, such as heart pacemakers and toys, all the way to making plates for high-speed trains and glass and ceramics, lithium shows up in many industries.
And our use of lithium is only growing by the year. In 2021 alone, lithium sales grew by 400%. And with countries and major companies vowing to become carbon neutral by 2050 (if not earlier), lithium will likely become a hot commodity, one that Canadian investors should take note of. 8
Argentina Lithium & Energy Corp. (LIT.V)
Argentina Lithium & Energy Corp., a junior mineral exploration company, engages in the acquisition, exploration, and evaluation of natural resource properties in Argentina. The company holds 100% interest in the Incahuasi lithium project covering an area of approximately 13,372 hectares of granted mineral rights properties located in the Catamarca Province, Argentina. It also has an option to acquire 100% interest in Antofalla lithium project, and Pocitos project covering an area of 26,000 hectares, as well as Rincon West project covering an area of 2,370 hectares located in Salta, Argentina. The company was formerly known as Iron South Mining Corp. and changed its name to Argentina Lithium & Energy Corp. in September 2016. Argentina Lithium & Energy Corp. was incorporated in 2000 and is based in Vancouver, Canada. 9
Average price target from 1 ratings: $$0.40
Average score: BUY 10
Graphite
The $3-trillion EV market needs batteries that are 20-30% graphite–a material the U.S. currently doesn't produce at all.
That makes graphite a matter of national security in the global energy race.
Each EV battery requires not only lithium–a metal that investors are very interested in–but even more graphite, the metal that prevents the lithium batteries from breaking down.
Yet, the U.S. hasn't produced any graphite for decades.
Now, with the EV market starting to explode, and automakers and battery manufacturers expected to consume far more than ever, we're looking at a nightmarish graphite supply chain that is mostly dependent on China–but not necessarily on the Chinese. 11
Graphite One Inc. (GPH.V)
Graphite One Inc. operates as mineral exploration company in the United States. It holds interest in the Graphite Creek property that consists of 176 mining claims covering an area of 9,583 hectares located on the Seward Peninsula of Alaska. The company was formerly known as Graphite One Resources Inc. and changed its name to Graphite One Inc. in February 2019. Graphite One Inc. was incorporated in 2006 and is headquartered in Vancouver, Canada. 12
Average price target from 1 ratings: $$2.25
Average score:BUY 13
Take the time and research these 4 battery metals companies to see if they are right for your portfolio.
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