16 Jul How do we invest in a sustainable future?
One way is to invest in the metal that is critical to the transition from fossil fuels to electrification.
From wind turbines to electric vehicles, bikes and trains to trucks, drones and a wide range of industrial applications the electric motor is the driving force behind the US$400 billion transitions from fossil fuels to a future with cleaner electrical energy.
As industry prepares to make this shift, demand for the super-strong permanent magnets essential to these motors and generators is increasing.
Electric vehicles are expected to drive an increase in demand for neodymium oxide of approximately 350 percent by 2025; substantially exceeding global annual production and potentially leading to shortages of these magnet metals.
At the same time, China and the European Union have announced plans to invest over US$1 trillion installing 60,000 offshore wind turbines over the next 20 years and it is expected that the demand for permanent magnets will grow approximately 1500 percent over the next 20 years.
The demand by these multi-trillion dollar industries on the relatively small US$3 billion magnet metal business is expected to result in magnet metal prices increasing significantly over the next 5 years.
At present, Chinese companies currently control approximately 87 percent of the world’s magnet metal production, with Lynas Corporation Ltd’s Mount Weld operation being one of the world’s only significant rare earth mines outside of China.
Pensana has identified a path to early development and subject to funding aims to position its Longonjo project as an important upstream supplier of magnet metal raw materials.
Pensana’s vision is to rapidly develop the Longonjo Project into production in time to meet the increasing demand for magnet metal raw materials that is widely predicted for the electrification of vehicles, wind turbines and a growing universe of green energy applications.