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By 2040, more people will buy electric cars compared to traditional gasoline and diesel vehicles, according to BloombergNEF data.
This is good news for the environment, but the shift to lithium-ion battery cars has huge implications for a complex global supply chain, currently dominated by China.
Lithium-ion batteries herald a technological revolution in the field of consumption, since they are used for smartphones and laptops, but the demand for lithium and other metals in the battery will increase considerably given the quantities needed for electric cars.
"Large lithium-ion batteries are vastly larger and contain more of these metals than cell phone batteries," says Brian Menell, a South African mining magnate who seized an opportunity.
"[When] the demand goes from three or four million current electric vehicles to 100 million, 200 million over the next 10 or 15 years … the magnitude of the inputs required is far beyond anything that was previously industrial history. "
Menell has created TechMet, a company that acquires interests in companies and mining projects related to key ingredients in lithium-ion batteries, magnets and printed circuit boards, such as lithium, cobalt, nickel, nickel 39, tin, tungsten and rare earth metals. Together, they are known as technological metals.
He says timing is particularly important because China has historically dominated the production of metals now needed for electric cars. This is embarrbading given that a US-China trade war is raging now. "It's a competitive problem and a huge national security problem in the United States," Menell said.
According to BloombergNEF, China will control 73% of lithium-ion battery manufacturing capacity in the world by 2021. Chinese companies are currently entering into huge deals with US companies, just as the company is doing. 39 agreement signed by Ganfeng Lithium with Tesla, under which it will provide a fifth production to the car manufacturer of Elon Musk.
Menell said TechMet alone could not counter Chinese domination, given the nation's wealth and long-term vision. "We can play a role in balancing the supply sources of the European and Japanese industries, we can play a role in educating government agencies about the landscape and how to participate in the pipeline to better protect their interests." , did he declare.
Read more: China locks dominant position in electric vehicle production
To date, the company has interests in several tin and tungsten mines in Rwanda, a nickel project in Brazil, a Canadian lithium recycling plant and a rare earth concentrate partnership in Bundi. Menell is raising $ 80 million and claims that TechMet's conservative estimate is that it will be worth $ 1 billion in five years when it plans an IPO.
Menell says recycling the battery's metals is in itself an important activity, estimating that 35% of the battery's metals could come from recycling. "It's a $ 10 billion business," he said. "We think we can get a benefit as a first-come-out."
Investors in TechMet to date include wealthy people. Menell hopes to attract government agencies during a next round and is in talks with OPIC, the US government's development finance organization, and the Japan Bank for International Cooperation (JBIC).
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