Vancouver, British Columbia - January 8, 2021 (www.waternewswire.com) Media alert for Defense Metals Corp. ("Defense Metals") (TSX-V:DEFN / OTCQB:DFMTF / FSE: 35D). The company was featured in the following article : JINKOSOLAR, DEFENSE METALS, BYD - DEMAND BOOM LEADS TO CATASTROPHE!
Full article and Original source
The sales figures for all major electric car manufacturers for the full year 2020 are on the table. 100% more e-cars were sold compared to the same period last year. But even more significant for the future is that vehicles with electric motors have overtaken pure combustion engines in new deliveries. The disruptive replacement is in full swing. However, shortages are emerging in the raw materials needed for the production of batteries and motors.
SHORTAGE OF RAW MATERIALS
In addition to lithium, which is needed for the production of batteries, there is also an enormous surplus of demand for other raw materials. This demand will become much more acute in the coming years. Permanent magnets for electric motors are produced based on rare earth metals. In ten years, the experts at Adamas Intelligence predict that demand for rare earth oxides for use in magnets will rise from USD 2.98 billion to USD 15.65 billion. The analysts at Adamas Intelligence see by far the most significant demand primarily for rare earth magnets such as neodymium, praseodymium, dysprosium and terbium. Even more severe is the short-term view of three to five years. The demand for rare earths is growing so enormously that the already insufficient production capacities will not be enough by far. It is a must to make significant investments in the mining industry to saturate demand to some extent.
The People's Republic of China has a virtual monopoly with 80% of rare earth metals production. Politicians are desperately looking for alternatives in Europe or North America. Defense Metals, a mineral explorer, is at the top of the list. Founded in 2016, the Company focuses on acquiring mineral deposits that contain metals and elements used in the production of renewable energy technologies, such as rare earth magnets. Research is underway at the Wicheeda project in the province of British Columbia. The Company says mineral resources are 4.9 million tons at an average grade of 3.02% LREO (light rare earth metals) and inferred mineral resources of 12.1 million tons at an average grade of 2.90% LREO.
CASH BOOST AND THE SHARE PRICE JUMPS
At the end of December, the Company announced that it would receive approximately CAD 632,000 from the exercise of 3.157 million warrants. These funds will be used to strengthen working capital and, in particular, to complete the preliminary economic assessment (PEA) of the project. The stock market is slowly recognizing the extreme demand for rare earth metals. Defense Metals shares have almost doubled to CAD 0.30 in the past four weeks and are close to their 2018 all-time high, but the stock market value is currently just under EUR 10 million. Given the further increase in demand due to the electric car boom, there is still significant room for improvement.
"BUILD YOUR DREAMS" CONTINUES
The importance of the procurement of lithium and rare earth metals is shown by the delivery figures for BYD for December. The Chinese Company sold a total of 56,322 vehicles in the last month of fiscal year 2020. In the previous month, the figure was 53,943 units. Compared to December 2019, this represents a significant increase of over 13,000 units. Crucially, however, the report showed that for the first time in the Company's history, more NEVs were sold than internal combustion vehicles.
LESS GROWTH THAN COMPETITORS
Indeed, BYD is still well ahead of competitors such as NIO (NYSE: NIO) or Xpeng (NYSE: XPEV) in terms of delivery figures. However, sales of electric cars were lower in percentage terms than those of its main Chinese competitors compared to the previous month. Although the share started the day almost 3% down, it managed to get back into the black over the course of the day.
The Chinese photovoltaic producer JinkoSolar was able to break its world record. An efficiency of 24.9% was achieved for a large, n-type, TOPCon, monocrystalline solar cell. According to the Company, the monocrystalline solar cell was manufactured on a high-quality, low-defect CZ mono-Si substrate. Earlier this year, when the cell still had an efficiency of 24.2%, JinkoSolar (NYSE: JKS) said the cell was based on the HOT design and featured tunnel oxide passivated contact technology.
About Defense Metals Corp. https://defensemetals.com/
Defense Metals Corp. is a mineral exploration company focused on the acquisition of mineral deposits containing metals and elements commonly used in the electric power market, military, national security and the production of "GREEN" energy technologies, such as, high strength alloys and rare earth magnets. Defense Metals has an option to acquire 100% of the 1,708 hectare Wicheeda Rare Earth Element Property located near Prince George, British Columbia, Canada. Defense Metals Corp. trades in Canada under the symbol "DEFN" on the TSX Venture Exchange, in the United States, under "DFMTF" on the OTCQB and in Germany on the Frankfurt Exchange under "35D".
For further information, please contact:
Todd Hanas, Bluesky Corporate Communications Ltd.
Vice President, Investor Relations
Tel: (778) 994 8072
Forward Looking Information
This news release contains "forward‐looking information or statements" within the meaning of applicable securities laws, which may include, without limitation, statements relating to finding partnerships, securing potential offtake agreements, and other business opportunities, the technical, financial and business prospects of the Company, its project and other matters. All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of rare earth elements, the ability to achieve its goals, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms. Such forward-looking information reflects the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including those filed under the Company’s profile on SEDAR at www.sedar.com. Factors that could cause actual results to differ materially from those in forward looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, adverse weather conditions, failure to maintain all necessary government permits, approvals and authorizations, failure to maintain community acceptance (including First Nations), decrease in the price of rare earth elements, the impact of Covid-19 or other viruses and diseases on the Company’s ability to operate increase in costs, litigation, and failure of counterparties to perform their contractual obligations. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law.
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