NILI:CC - Growth In Metals Mining Could Be Key To Achieving Energy Independence
(NewsDirect)
In the era of cleanenergy, the battery metals used in electric vehicles may have becomethe new oil, making investing in a domestic battery supply chain —from mine to battery — a critical step toward U.S. energyindependence.
Butthe U.S. has a long way to go to meet the demand for the metals usedto power electric vehicles (EVs).
Under the Inflation Reduction Act, the U.S.government is spending billions of dollars on energy transition,including through EV purchase incentives, to help the BidenAdministration achieve its goal of 50% of new car sales to be zeroemissions by 2030.
Beginning in 2023 and 2024, consumers purchasing EVs areeligible for the following tax credits:
· $4,000 for used EVs
· $7,500 for new NorthAmerican EVs
· Up to $7,500 for commercial EVs weighing less than 14,000 pounds
· Up to $40,000 forcommercial EVs weighing more than 14,000 pounds
If projections arecorrect, the incentives will have the desired effect. U.S. EV salesare expected to accelerate in the years to 2030, according to theInternational Energy Agency (IEA).
EVscurrently displace more than 1million barrels of oil use per day. By 2050, EVs and fuel-cellvehicles are expected to replace more than 21 million barrels per day,according to an investor presentation prepared by Surge Battery MetalsInc . (TSX-V: NILI) (OTC: NILIF) (FRA: DJ5), an exploration companyfocused on locating and developing high-value deposits of the cleanenergy battery metals that are vital to the rapidly growing EVmarket.
Mining Capability Is Key To A Reliable SupplyChain
As Americamanufactures more EVs, it also will need more mines to supply themetals used to make the batteries that power them. The averageelectric car contains 8.9 kilograms (kg) of lithium and 39.9 kg ofnickel.
Based onthe projected production of EVs and the estimated amount of metalsneeded to power them, the production of the metals to meet demandseems to be lagging.
In 2021, the U.S produced 900 tons of lithium and 18,000 tonsof nickel, far short of the projected need of 155,928 tons of lithiumby 2030 and 699,048 tons of nickel by 2030, according to a report prepared by Surge Battery Metals.
TheU.S. currently relies on battery metal imports, while China dominatesmetal refining and battery production. Canada-based Surge Metals couldbe part of the solution. The company is focused on exploring NorthAmerican deposits of lithium and nickel, and is already exploringlithium deposits at its mine in Elko County, Nevada, and nickeldeposits at its mine in British Columbia.
Surge Battery MetalsInc. is a Canadian based exploration company focused on locating anddeveloping high value deposits of clean energy battery metals that arevital to the rapidly growing electric vehicle (EV) market.
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