GBLEF - Global Energy Metals Forms U.S. Subsidiary Amid Rising Demand for Regionalized Battery Mineral Supply Chain Exposure
(TheNewswire)
Vancouver, BC - TheNewswire - October 5, 2020 - Global Energy MetalsCorporation ( TSXV:GEMC ) | ( OTC:GBLEF ) | ( FSE:5GE1 ) ("Global Energy Metals", the"Company" and/or "GEMC ") is pleased to announce that in seeking tocapitalize on rising interest in the battery minerals sector as globaladoption of electric vehicles significantly increases that the Companyhas formed a new, wholly-owned U.S subsidiary - U.S. Battery MetalsCorporation .
On September 30th, 2020, U.S. PresidentDonald Trump said "a strong America cannot be dependent onimports from foreign adversaries for the critical minerals that areincreasingly necessary to maintain our economic and military strengthin the 21st century" and put in effect Executive Order 13817 ofDecember 20, 2017 (A Federal Strategy To Ensure Secure and ReliableSupplies of Critical Minerals) , which required the Secretary of the Interior to identifycritical minerals and made it the policy of the Federal Government toreduce the Nation's vulnerability to disruptions in the supply ofcritical minerals.
Having U.S. BatteryMetals as a subsidiaryallows GEMC to establish a U.S. presence at a pivotal time when the EVautomotive industry becomes a pillar for the sourcing of a localizedcritical battery metals supply chain and is on the forefront ofnational political and economic agendas.
As its first holdings, U.S.Battery Metals willinclude the recently announcedapproved acquisition of an 85% stake in both theLovelock Mine and Treasure Box projects , strategically located in close proximity toend-use battery manufacturing capacity.
The addition of these highly prospectivenickel, cobalt and copper properties, each being well positioned forfurther exploration and development, comes at a time when the batteryminerals sector is realigning with price fundamentals as a surge indemand and market growth is supported by a global acceleration of EVproduction. A movement that is demanding that the value chain be madeas simple as possible and that electroMobility and othersustainable-energy initiatives require supply chain disruption andlocalization.
RhoMotion , aUK based group that provides long-term forecasts and analysis for theelectric vehicle industry, recently suggested that global investmentin the EV supply chain will be well in excess of USD $1trillion. By2040, Bloomberg New EnergyFinance (BNEF)foresees the global stock reaching 500 million EVs across theindustry, with automakers investing $300 billion over the next five to10 years on EV development and production. Even the Organization ofthe Petroleum Exporting Countries (OPEC) foresees roughly 320 millionEVs on the road by 2040.
Global Energy Metals strives to be partof this mega-trend through its portfolio of cobalt,nickel and copper projects in safe, pro-mining jurisdictions as demand for these minerals strengthen in thewake of progress made in electrifying globaltransportation.
Globally, political leaders are seekingopportunities to decarbonize their respective economies and areworking towards shifting the global energy sector with significantevolution to occur during the first half of the 21st century.
In North America specifically, strategicimportance has been placed on controlling and building a shorter,localized supply chain of battery minerals in order to provide a muchneeded regional solution to the procurement of raw materials; theirrefinement and processing, as well as recycling to ensure ethicalsourcing of these critical minerals and enable the electrification oftransportation and new energy storage. Both the Canadian and UnitedStates governments have placed several minerals that are deemedessential to the growth of the sector as critical and are jointlyworking to develop and implement a Critical Minerals Strategy. Thetwo countries have recognized the importance of changing andcapitalizing on the balance of industrial power and are keen toleverage their respective natural resource wealth and manufacturingexpertise to position the countries at the forefront of the 'globalbattery arms race'.
Furthermore, in parallel to thesegovernment actions, as automakers shift from horsepower to kilowattsthey are driving a massive push for a future of electric cars as theytry to transition consumers away from fossil fuel burning combustionengines to comply withstricter environmental regulations. To capture the market for thesevehicles and mitigate the risks of limited or controlled supply chainwhile reducing costs to reach cost parity with internal-combustionengine cars, global carmakers from early stage startups to automobilegiants like Volkswagen, Ford, BYD, Toyota and Tesla are all beginningto lock in supplies of raw materials needed to increase production oflithium-ion batteries powering the electric revolution.
In recognizing that the green technologysector is expected to be worth trillions of dollars in the comingyears, establishing U.S. Battery Metals as a new subsidiary of Global Energy Metalswill form an important role in the Company's overall objective ofproviding its shareholders with exposure to eMobility and the trendtowards energy transition, clean energy storage and associatedinfrastructure investment through a U.S. entity that holds promisingbattery mineral projects in close proximity to end-use regionalapplication.
Global Energy MetalsCorporation
(TSXV:GEMC |OTCQB:GBLEF | FSE:5GE1)
Global Energy Metals is focused onoffering investment exposure to the raw materials deemed critical forthe growing rechargeable battery market, by building a diversifiedglobal portfolio of battery mineral assets including project stakesand sector specific equity positions. GEMC anticipates growing itsbusiness through the acquisition and development of battery mineral projects alongside keystrategic partners. The Company holds 100% of the Millennium CobaltProject and two neighbouring discovery stage exploration-stage cobaltassets in Mount Isa, Australia positioning it as a leadingcobalt-copper explorer and developer in the famed mining district inQueensland, Australia. The Company is finalizing on the acquisition ofan 85% interest in two battery mineral projects, the Lovelock CobaltMine and Treasure Box Project, located on the doorstep of the world'slargest lithium-ion battery production plant, the Gigafactory One thatTesla Motors Ltd. and partner Panasonic Corp. have built in Nevada,USA. Additionally, theCompany holds a 70% interest in the past-producing Werner Lake CobaltMine project in Ontario, Canada.
For FurtherInformation:
Global Energy MetalsCorporation
#1501-128 West PenderStreet
Vancouver, BC, V6B 1R8
Email: info@globalenergymetals.com
t. + 1 (604) 688-4219 extensions236/237
Twitter: @EnergyMetals |@USBatteryMetals
Cautionary Statementon Forward-Looking Information:
Certain informationin this release may constitute forward-looking statements underapplicable securities laws and necessarily involve risks associatedwith regulatory approvals and timelines. Although Global Energy Metalsbelieves the expectations expressed in such forward-looking statementsare based on reasonable assumptions, such statements are notguarantees of future performance and actual results or developmentsmay differ materially from those in the forward-looking statements.Except as required by law, the Company undertakes no obligation toupdate these forward-looking statements in the event that management'sbeliefs, estimates or opinions, or other factors, should change. Formore information on Global Energy and the risks and challenges oftheir businesses, investors should review the filings that areavailable at www.sedar.com.
Neither TSX VentureExchange nor its Regulation Services Provider (as that term is definedin the policies of the TSX Venture Exchange) accepts responsibilityfor the adequacy or accuracy of this release.
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