Investing in the Global Battery Metals Boom: Seizing Opportunities in a Rapidly Evolving Market

• Battery metals demand is surging due to the global shift towards electrification and sustainable energy.
• Geopolitical tensions and supply chain risks are driving efforts to diversify production outside of China.
• Companies like Rome Resources, Nano One Materials, Impact Minerals, Altech Batteries, and Metro Mining are well-positioned to capitalize on the growing demand.
• Sustainable production practices and exposure to overlooked metals like tin and aluminum offer competitive advantages.
• Attractive valuations and government support create a favorable environment for battery metal investments.

The global transition towards electrification and sustainable energy is driving unprecedented demand for battery metals. Lithium, nickel, cobalt, graphite, and other key materials are essential for the production of lithium-ion batteries used in electric vehicles (EVs), energy storage systems, and consumer electronics. As governments and industries worldwide commit to reducing carbon emissions, securing reliable and diversified supply chains for these critical metals has become a top priority.

Market Outlook & Demand Drivers

The battery metals market is expected to experience significant growth in the coming decade, driven by several key factors:

• EV Adoption: The shift towards electric vehicles is accelerating, with major automakers committing to ambitious electrification targets. EVs will account for 16.7% of global light vehicle sales in 2025, a 1.7% rise year-over-year, converts to around 89.6 million units.^[3] This growth will require a massive increase in battery production and, consequently, demand for battery metals.
• Energy Storage: As renewable energy sources like wind and solar gain market share, the need for large-scale energy storage solutions is growing. Stationary storage installations are expected to increase from 9 GWh in 2018 to 1,095 GWh by 2040. This will further drive demand for battery metals.
• Government Support: Governments around the world are implementing policies and incentives to support the adoption of EVs and the development of local battery supply chains. The US Inflation Reduction Act, for example, provides tax credits for EVs and battery production, while the European Union's European Battery Alliance aims to establish a competitive and sustainable battery value chain in Europe.

Geopolitical Tensions & Supply Chain Risks

The battery metals market is heavily influenced by geopolitical factors, particularly the growing tensions between the US and China. China currently dominates the production and processing of many key battery metals, raising concerns about supply chain security and dependence on a single country.

"We have to figure out how to decouple from China because they can cut supply chains off willy-nilly," said Dan Blondal, CEO of Nano One Materials. "Canada's very well positioned, we've got incredible natural resources here."

Companies and governments are actively seeking to diversify their battery metal supply chains and establish production capabilities outside of China. This presents significant opportunities for miners and processors in other regions, such as North America, Europe, and Australia.

Nano One Materials

Nano One Materials is positioning itself as a leading low-cost and environmentally friendly producer of LFP battery cathode materials outside of China. The company has secured $60 million in non-dilutive funding to support the commercialization of its one-pot process technology, which reduces costs and eliminates wastewater discharge. The company's Quebec facility serves as both a commercial-scale plant and a demonstration site for potential licensees, supporting the company's global expansion strategy. With strong market fundamentals for LFP and government support for domestic supply chains, Nano One is well-positioned for growth in 2025 and beyond.

Emerging Opportunities & Investment Trends

Lithium Iron Phosphate (LFP) Cathodes

LFP batteries have gained popularity due to their lower cost, improved safety, and longer cycle life compared to other lithium-ion chemistries. Nano One Materials, a Canadian company, has developed a proprietary one-pot process for producing LFP cathode materials that significantly reduces costs and eliminates wastewater discharge. Nano One positions itself as a market of one of ex-China for North American LFP production. This unique position becomes increasingly valuable amid growing US-China trade tensions and security concerns.

Investing in companies like Nano One Materials that are pioneering sustainable and cost-effective LFP production outside of China could offer significant returns as demand for LFP batteries grows.

Sustainable & Low-Carbon Production

As consumers and industries prioritize sustainability, there is growing demand for battery metals produced with lower environmental impact. Companies that can demonstrate sustainable practices and reduce their carbon footprint are likely to attract investment and secure long-term supply contracts.

Businesses embracing green practices can unlock substantial market growth and gain a competitive edge. The importance of low-carbon aluminium pricing continues to grow, providing valuable benchmarks for the market.^[1]

Investing in companies that prioritize sustainable production and have access to low-carbon energy sources could provide a competitive advantage as the market evolves.

Impact Minerals

Impact Minerals is raising up to $5.2 million through a rights issue to fund the development of its Lake Hope high purity alumina (HPA) project and exploration at the Arkun and Broken Hill projects in Australia. The Lake Hope project's pre-feasibility study is nearing completion and has shown potential for an attractive 10,000 tpa HPA plant.

According to Impact Minerals' chairman Peter Unsworth stated in a report,

"The Lake Hope pre-feasibility study (PFS) is now in its final phase, following the successful completion of crucial test work. With these positive results in hand, we are now in a position to complete the PFS and take the next steps towards commercialization."

Impact's projects align with the growing demand for HPA driven by the battery and electronics industries. The rights issue will allow existing shareholders to participate in this critical growth phase.

Unsworth added, "The board strongly believes that the company is currently undervalued, particularly given the significant progress we have made at Lake Hope and the broader global demand for high purity alumina (HPA)."

Altech Batteries

Altech Batteries is acquiring additional stakes in its CERENERGY sodium chloride solid-state battery and Silumina Anodes battery materials projects from Altech Advanced Materials AG (AAM). Post-acquisition, Altech will own 75% of CERENERGY (with 25% held by Fraunhofer) and 100% of Silumina Anodes. This consolidation streamlines project execution and positions Altech to accelerate the commercialization of these high-value projects targeting the growing demand for advanced battery technologies.

Altech Batteries highlighted the strategic rationale:

"The Board of Altech believes the transaction will deliver significant strategic benefits, including consolidation of ownership in the Silumina Anodes and CERENERGY projects, enabling streamlined decision-making and project execution."

The acquisition, valued at A$23.3 million and paid in shares, strengthens Altech's position in the battery technology space while AAM maintains exposure through a 21% ownership in Altech post-transaction.

Metro Mining

Metro Mining, a low-cost Australian bauxite producer, achieved record production and shipments in 2024 following the ramp-up of its 7 million wet metric tonne per annum expansion. Q4 site EBITDA margins increased 149% year-over-year to $17.40 per wet metric tonne, driven by higher volumes, improved pricing, and cost control. Metro Mining deleveraged its balance sheet, repaying junior debt and refinancing senior debt at lower rates.

According to the company's investor update, Metro Mining is targeting 6.5 to 7.0 million wet metric tonnes of production and shipments in 2025, with a focus on improved productivity and costs. With a rising spot price for Australian bauxite, Metro Mining is well-positioned to capitalize on the strong market fundamentals and growing demand from China's aluminum industry.

Tin: An Overlooked Battery Metal

While lithium, nickel, and cobalt often dominate the battery metals discussion, tin is an essential component in solder used for electronics. The growing demand for advanced electronics, data centers, and EVs is driving tin consumption, creating opportunities for tin miners and explorers.

Rome Resources

Rome Resources, a tin explorer in the Democratic Republic of Congo (DRC), recently reported increasing tin grades at depth and plans to release a maiden resource estimate for its Kalayi prospect by the end of March 2025.

"The key really is demand," said Paul Barrett, CEO of Rome Resources. "A lot of the countries that want to go forward in terms of the AI revolution, electrification which for countries like the US, India, etc., will be driving demand going forward because tin glues all the electronics together and there is no substitute."

Investing in tin explorers and producers could provide exposure to the broader growth in electronics and EV demand, with the potential for significant returns as tin prices rise.

The Investment Thesis for Battery Metals

• Long-term demand growth: The global shift towards electrification and sustainable energy will drive significant and sustained demand for battery metals.
• Geopolitical tailwinds: Growing US-China tensions and the push for supply chain diversification will benefit companies producing battery metals outside of China.
• Government support: Policies and incentives supporting EV adoption and local battery production will create a favorable environment for battery metal investments.
• Sustainable production advantage: Companies with low-carbon, environmentally friendly production processes will be better positioned to meet growing demand for sustainably sourced materials.
• Overlooked opportunities: While lithium and nickel are well-known battery metals, other materials like tin and aluminum offer exposure to the broader growth in electronics and EVs.
• Attractive valuations: Many battery metal companies are currently undervalued relative to their long-term growth potential, presenting an opportunity for investors to enter the market at an advantageous price point.

The battery metals market is set for significant growth in the coming years, driven by the global transition towards electrification and sustainable energy. As demand for EVs, energy storage, and advanced electronics continues to rise, securing reliable and diversified supply chains for key battery metals will be crucial. Geopolitical tensions and the push for production outside of China present opportunities for companies in North America, Europe, and other regions to capture market share and attract investment.

By investing in companies that are well-positioned to meet the growing demand for battery metals, particularly those with sustainable production practices and exposure to overlooked materials like tin and aluminum, investors can potentially realize significant returns while supporting the transition to a low-carbon future.

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References:

1. Peters, Yolande (March 2025). ​Fastmarkets Announces Aluminium Pricing Suite to Bring Transparency to Mexico’s Growing Market
2. The Austrialian (February 2025). Impact Raising up to $5.2m to Develop Lake Hope HPA, Exploration at Arkun and Broken Hill
3. S&P Global (December 2024). 2025 Auto Sales Forecast: 89.6M Vehicle Sales Worldwide