Battery Metals Equities Priming for the Global EV Fleet Demand Wave

The rapid growth of the electric vehicle (EV) industry and the global transition towards clean energy are driving unprecedented demand for battery metals such as nickel, copper, platinum group metals (PGMs), gallium, and silver. As countries worldwide set ambitious targets for reducing carbon emissions, securing reliable supplies of these critical metals has become a top priority for governments and investors alike.

The Battery Metals Supercycle

Industry analysts and market commentators have described the anticipated demand surge for battery metals as a "supercycle" - a decades-long period of robust demand growth and elevated prices driven by a structural shift in the global economy. In a report, Goldman Sachs projected that the battery metals bull market could rival the oil supercycle of the 2000s in terms of value.

Nickel is a prime example. As a key ingredient in the cathodes of lithium-ion batteries, nickel demand from the EV sector is forecast to grow 12-fold by 2035. On the supply side, there are very few new nickel projects in the pipeline, and many existing mines face declining ore grades and rising costs. This has set the stage for a structural deficit in the nickel market, with prices needing to rise significantly to incentivize new production.

Power Metallic

Nickel, in particular, is expected to experience a significant supply deficit as EV production accelerates. Power Nickel CEO Terry Lynch highlights the potential scale of this opportunity with the company's NISK orthomagmatic large deposit,

"[Orthomagmatic nickel-copper-PGM] are either giant or super giants. We don't know what's there, that's what we need to find...Voisey's Bay was 140 million tons, can we get there? Maybe."

Lynch suggests that Power Nickel's Nisk project in Quebec could potentially rival the massive Voisey's Bay nickel deposit, which contained over 140 million tonnes of ore.

Magna Mining

Copper, another key battery metal, is also facing a highly bullish demand outlook. Magna Mining is focusing on high-margin copper production from its portfolio of projects in the Sudbury Basin, with the goal of becoming a significant new producer in the region. As Magna Mining CEO Jason Jessup explains:

"There's great margins in the copper ores and that's where we're going to focus and we're going to make money and we're going to reinvest that money and and keep building out our projects."

Nano One Materials

Nano One is making significant strides in establishing itself as a leading North American producer of lithium iron phosphate (LFP) battery cathode materials. The company's strategic financial management, including securing $60 million in non-dilutive funding through grants, partnerships, and asset sales, has positioned it well for future growth without diluting shareholders.

Nano One's proprietary "one-pot" technology, which consolidates cathode production steps, reduces costs, and eliminates wastewater, sets it apart as the only LFP producer in North America independent from Chinese supply chains. CEO Dan Blondal emphasized the importance of this independence:

"We have to figure out how to decouple from China because they can cut supply chains off willy-nilly. Canada's very well positioned... we've got incredible natural resources here."

The company's Quebec facility serves as both a production and demonstration site for potential licensees, helping customers avoid expensive pilot plants while building credibility through defense and aerospace contracts. Looking ahead to 2025, Nano One is focused on capacity expansion and securing initial revenue.

Jurisdictional Advantage

As concerns about the geopolitical risks associated with battery metal supply chains intensify, there is a growing focus on developing projects in stable, mining-friendly jurisdictions such as Canada, the United States, Preu and Brazil. These countries offer a favorable combination of geological potential, established infrastructure, and supportive governments.

Canada Nickel

Canada Nickel CEO Mark Selby emphasizes the importance of producing low-carbon battery metals in North America. The company is experiencing significant interest from Middle Eastern SWF's looking to diversify their economies beyond oil.

Selby notes, "Critical minerals... the whole China versus the West conflict is not going to get resolved in the next week or so."

As Selby noted in the interview, Middle Eastern investment groups recognize the strategic opening:

"If they can help enable production of critical minerals in the west and have Saudi and the Emirates be part of that transition to help wean the West off of Chinese supplied critical minerals, they're very glad and very excited by the opportunity to do so."

By developing its Crawford nickel project in Ontario, Canada Nickel aims to become a major supplier of green nickel to the North American EV industry.

Cerro de Pasco Resources

Peru is a world-class mining jurisdiction, ranking second globally in copper, silver, and zinc production, with mining accounting for over 10% of its GDP and 60% of exports. Cerro de Pasco Resources claims to hold the world's largest above ground mineral resource of silver, zinc, lead, copper and gold (total estimation of 430 million ounces of silver equivalent) with its enormous above-ground stockpile in Peru.

CDPR's drilling in the form of high gallium grades, a critical metal used in semiconductors, LEDs, and other advanced technologies. Initial results show consistent gallium grades higher than any other known primary gallium deposits worldwide at 80 g/t. As CEO Guy Goulet commented:

"We got those assays of gallium for the past two months...Trump and Ukraine and China and US, gallium has become such a strategic mineral."

CDPR has a clear permitting path and strong government support for its project, with secured mining and surface rights over the stockpile area, and expanding permits to the surrounding area is a straightforward process that requires only additional validation drilling, which has been completed.

Bravo Mining

In Brazil, Bravo Mining is benefiting from strong support from the government for its Luanga PGM-copper-gold project. As Bravo CEO Luis Azevedo notes:

"Brazil realized that PGM is a critical mineral for them. We have a big auto industry and are importing over 460,000 ounces of PGM per year. So the government wants to move this forward as fast as they can. They invited us to PDAC where the Secretaries of Mines and Environment basically signed an MOU with us promising to accelerate the next phases as well."

"We have institutions funds and our big mining guru guys continue to go with us. That gives everyone confidence when those guys continue to write serious checks."

The backing of prominent investors such as Robert Friedland underscores the strategic importance of Bravo's asset in the context of the global battery metals race.

The Investment Thesis for Battery Metals

• Gain exposure to the key metals powering the global energy transition: nickel, copper, PGMs, and silver
• Invest in companies with high-quality, advanced-stage projects in stable mining jurisdictions such as Canada, the U.S., and Brazil
• Look for experienced management teams with strong track records of value creation and deep relationships in the industry
• Focus on projects with scale, grade, and infrastructure advantages that can be fast-tracked to production
• Monitor key macroeconomic drivers such as EV adoption rates, government emissions targets, and infrastructure spending
• Take a long-term view to maximize exposure to the full battery metals supercycle
• Consider investing in a diversified basket of battery metal equities to mitigate individual project or commodity risk

The battery metals supercycle represents a generational opportunity for investors to participate in the global energy transition. With demand for nickel, copper, PGMs, and silver expected to soar in the coming years, companies that can bring new supply online quickly and efficiently are poised to create significant value for shareholders.

By focusing on high-quality projects in stable jurisdictions and backing experienced management teams, investors can position themselves to benefit from the powerful trends driving the battery metals market. While risks remain, the long-term fundamentals for battery metal demand are highly compelling. For investors with a long-term horizon and an appetite for growth, the battery metals space offers a rare opportunity to invest in the future of energy while also potentially generating significant returns.