As More States Follow California in Banning Sales of New Internal Combustion Engine Vehicles, Critical Minerals Demand Will Increase, NioCorp Says
NioCorp's CEO, Mark Smith, has highlighted a growing interest from auto manufacturers in the company's planned critical minerals, particularly following state regulations banning internal combustion engine vehicles. This trend, propelled by the Inflation Reduction Act, is expected to significantly boost demand for critical minerals like niobium, scandium, and titanium. Smith noted that inquiries from auto companies have intensified, as the Elk Creek Project in Nebraska aims to meet this rising demand once financed and operational.
- Increasing inquiries from auto manufacturers about NioCorp's critical minerals.
- Potential for significant demand growth due to state bans on internal combustion vehicles.
- Legislation like the Inflation Reduction Act is driving interest and incentives for critical minerals.
- None.
In a newsmaker interview, NioCorp's Mark Smith reports that inquiries from auto companies about NioCorp's planned products are intensifying
CENTENNIAL, Colo., Aug. 30, 2022 /PRNewswire/ -- More states are likely to follow California's lead in banning the future sale of internal combustion engine vehicles as a means of accelerating demand for electric vehicles ("EVs") and addressing climate change, according to NioCorp CEO and Executive Chairman Mark Smith. In a newsmaker interview this week, Mr. Smith noted that these and other government actions are also likely to increase demand for the critical minerals needed by EVs and other cleantech applications – including the critical minerals NioCorp plans to produce at its Elk Creek Project in Nebraska, once financing is obtained and the Project is in commercial operation.
"Demand for EVs and hybrids is going to skyrocket as a result," Mr. Smith told Stephen Gunnion of Proactive Investor. "Virginia looks like it will follow suit in not allowing the sale of internal combustion engines along the same timeline as California."
Mr. Smith also addressed the impact of a new U.S. law tying the federal tax credit for EV purchases to minimum percentages of critical minerals used in the lithium-ion batteries that are made in the U.S. "There is no question that this will have an impact on producers of critical minerals in the U.S.," he noted. 'It will drive a huge demand for critical and strategic minerals needed to make these EVs, which the government is now incentivizing. It is a huge development for NioCorp."
Mr. Smith also noted that companies in the auto sector have increased their inquiries to NioCorp in terms of their interest in the critical minerals that NioCorp intends to produce, once the Elk Creek Project is financed and in commercial operation.
"Those conversations have been developing since the beginning of the year and, with the passage of the Inflation Reduction Act, those conversations have accelerated," he noted. "It is really a change in our industry."
To see the entire interview with Mr. Smith, please go here:
https://www.proactiveinvestors.com/companies/news/991202/niocorp-developments-says-legislation-including-ira-2022-has-boosted-interest-in-critical-minerals-991202.html
For More Information:
Contact Jim Sims, Corporate Communications Officer, NioCorp Developments Ltd., 720-639-4650, jim.sims@niocorp.com
@NioCorp $NB.TO $NIOBF $BR3 #Niobium #Scandium #rareearth #neodymium #dysprosium #terbium #ElkCreek #EV #electricvehicle
NioCorp is developing a critical minerals project in Southeast Nebraska that will produce niobium, scandium, and titanium. The Company also is evaluating the potential to produce several rare earths from the Project. Niobium is used to produce specialty alloys as well as High Strength, Low Alloy ("HSLA") steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium is a specialty metal that can be combined with Aluminum to make alloys with increased strength and improved corrosion resistance. Scandium is also a critical component of advanced solid oxide fuel cells. Titanium is used in various lightweight alloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor, and medical implants. Magnetic rare earths, such as neodymium, praseodymium, terbium, and dysprosium are critical to the making of Neodymium-Iron-Boron ("NdFeB") magnets, which are used across a wide variety of defense and civilian applications.
Neither the Toronto Stock Exchange ("TSX") nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this document. Certain statements contained in this document may constitute forward-looking statements, including but not limited to statements related to the Company's expectations regarding the anticipated benefits of the Inflation Reduction Act of 2022, including benefits related to advanced manufacturing tax credits, electric vehicle tax credits and provisions encouraging greater production of critical minerals in the U.S.; the impact of states banning the future sale of internal combustion engines on demand for U.S.-made critical minerals; and any results from conversations NioCorp is having with companies in the automotive sector about possible offtake agreements for NioCorp's planned products. Such forward-looking statements are based upon NioCorp's reasonable expectations and business plan at the date hereof, which are subject to change depending on economic, political and competitive circumstances and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause NioCorp's plans or prospects to change include risks related to NioCorp's ability to operate as a going concern; risks related to NioCorp's requirement of significant additional capital; changes in demand for and price of commodities (such as fuel and electricity) and currencies; changes or disruptions in the securities markets; legislative, political or economic developments; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of NioCorp's projects; risks of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative nature of mineral exploration and development, including the risks of diminishing quantities of grades of reserves and resources; the risks involved in the exploration, development and mining business, and the risks set forth in the Company's filings with the SEC at www.sec.gov. NioCorp disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
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SOURCE NioCorp Developments Ltd.
FAQ
What impact will the Inflation Reduction Act have on NioCorp's operations?
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