- The
unexpected rise of the COVID-19 pandemic has roiled markets on a global
scale, but the economic outlook for China’s large electric vehicle (EV)
market clearly remains promising
- Canadian
mineral explorer Bolt Metals Corp. is pursuing a strategy of playing a
part in China’s EV supply chain, anticipating that its Indonesian Cyclops
Nickel-Cobalt project will further its plans
- Bolt
is focused on the acquisition and development of production-grade EV
battery metals projects in the Asia-Pacific region, anticipating that
world leaders’ climate change policies will boost EVs’ fortunes
- Indonesia
is working to use its metals resources to make itself a key player in the
EV market, particularly in nearby China, where the stainless-steel
industry is expected to be heavily reliant on Indonesian exports
- Bolt
recently inked a non-binding cooperative agreement with Chinese metals
producer Hunan Jinxin that advances its ties to the nation’s markets
It’s no surprise that the advent and rapid global spread of
the novel coronavirus widely known as COVID-19 has disrupted production supply
chains across the commercial spectrum and led to reduced market expectations
for industries deemed “non-essential” during a period of pandemic-level illness
that has proven deadly and debilitating for a significant portion of the
world’s population.
Despite the bleak forecast for EVs and the knock-on effects
on raw materials, equity analysis firm Wood Mackenzie notes that the
coronavirus is an anomalous event that may disrupt the course of action taken
to slow climate change, such as EV production and sales, but the overarching
goal of sustaining global environments remains an irresistible driver (http://ibn.fm/vjm7d). In such a
light, the long-term outlook in exploration for EV battery metals continues to
look positive.
Bolt Metals Corp. (CSE: BOLT) (OTCQB: PCRCF) (XFRA: NXFE) made
news last month when the company inked a non-binding cooperative agreement with
Chinese tungsten and cobalt producer Hunan Jinxin. The agreement opens the door
to completing potential definitive binding agreements on mineral sourcing from
Bolt’s 100 percent-controlled Cyclops Nickel-Cobalt project based in
Indonesia (http://ibn.fm/T8sm1).
While extensive exploration of essential EV supply chain
metals such as nickel and cobalt has been taking place at the project in
Indonesia – a country known as the world’s largest nickel ore producer – Bolt
Metals acknowledges that the possibility of proceeding to production at the
site has yet to be established.
“The agreement does not imply that the Company has made a
decision to proceed to production without first establishing mineral reserves,”
a report clarification issued by Bolt Metals states. “The Company has not made
the decision to proceed to production and clarifies that any such statement if
made in the future would be made in compliance with Companion Policy 43-101CP,
4.2(6) – Production Decision, which requires details of the significant risks
associated with such a decision.”
Even so, the agreement is expected to further Bolt’s
strategy to acquire and develop production-grade battery metals opportunities
throughout the Asia-Pacific region and become a participant in China’s electric
vehicle supply chain. China has been a world leader in EV sales, but sales
began to slow last year when the government trimmed environment-friendly
subsidies. The pandemic added to the pressure, but the government is now
considering reviving its incentives program to strengthen the market (http://ibn.fm/NzFly).
Indonesia has been angling to make itself a dominant player
in the electric vehicle cathode supply chain thanks to its mineral resources
and proximity to the Chinese market. Actions taken by the government last year
were expected to make the Chinese stainless steel industry heavily reliant on
Indonesia’s exports of ferro-nickel and nickel pig iron (NPI), although the
unexpected effects on mineral demand brought about the pandemic outbreak in
China has suspended industrial operation there on a large scale (http://ibn.fm/6AOH3).
A slight decline in NPI output in China during the first two
months of the year when China was dealing with the height of its pandemic
response was offset by doubled NPI supply from Indonesia, according to S&P
Global Platts (http://ibn.fm/RMnoL).
NPI’s substitution for high-grade nickel caused consumption of the Class-I
mineral to decline, but the overall picture is that the pandemic had limited
impact on nickel supply and demand in China, the energy and commodities markets
analyst stated.
For more information, visit the company’s website at www.BoltMetals.com
NOTE TO INVESTORS: The latest news and updates
relating to PCRCF are available in the company’s newsroom at http://ibn.fm/PCRCF
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