Nickel & the Cleantech Revolution — Plus Alaska Energy Metals’ Role in US Energy Independence

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The electric vehicle revolution is genuinely in full swing, with almost one out of every 4 new vehicles having a plug in 2024. The core element of that revolution is the batteries, and the essence of those batteries is a handful of metals. So, the most critical conundrum is how to get more of those metals, from where you want to get them, and at a low enough cost. One domestic company, Alaska Energy Metals Corporation (AEMC), says that it is at the forefront of securing those critical metals for the US. Beyond EVs, it is also focused on securing metals needed for the ongoing renewable energy transition. From nickel to copper to cobalt, AEMC is focused on strategic exploration and development projects that should strengthen US energy independence while accelerating the transition to cleantech.

Booming EV Market, Booming Battery Market

The electric vehicle (EV) market is rapidly reshaping the global automotive landscape, in major auto markets as well as smaller ones. Across the world — in Asia, Europe, Africa, South America, and North America — governments are working to phase out fossil-fueled internal combustion engines sooner than later, and EV adoption keeps growing year after year.

Global EV sales are expected to surpass 20 million units in 2025. More than half of new vehicle sales are expected to be plugin vehicles (and perhaps even full electrics) by 2030, or possibly much sooner.

Imagine how much supply and demand for lithium-ion batteries have grown in the past decade. The market is unrecognizable it’s so much bigger. In another 10 years, the scale will be jaw dropping, and critical materials like lithium, cobalt, platinum, and nickel will be extracted and refined at an unbelievable level.

Nickel is now playing a pivotal role in enhancing battery performance, as nickel-rich chemistries (such as NMC, or nickel-manganese-cobalt) and NCA (nickel-cobalt-aluminum) can improve energy density and thus allow EVs to travel greater distances on a single charge from the same size pack.

Then, again, beyond EVs, we’ve got the fast rising adoption of renewable energy sources like solar and wind power, and that has led to much more demand for battery storage systems to integrate them well into the grid. So, more batteries and battery minerals are needed day after day.

The Energy Transition & Nickel

With nickel being a cornerstone of the cleantech transition — for both EV batteries and large-scale energy storage systems — even though it’s already produced at a pretty big scale for other things (like stainless steel), its supply will need to grow orders of magnitude larger.

Tesla, General Motors, and Volkswagen are now securing their own sustainable nickel supplies to make sure they can meet growing production targets. Just by 2030 (five years from now), global nickel demand is forecasted to more than double, and almost 70% of that demand will be driven by battery production.

Worldwide nickel production reached 3.6 million tonnes in 2023, and some forecasts think it could rise to 5.6 million tonnes by 2030. The EV battery portion of that pie is forecasted to increase from 8% of total demand in 2022 to 18% by 2030, poptentially requiring up to 1.09 million tonnes a year all by itself. Large-scale battery energy storage systems (BESS) for grid storage are projected to increase sixfold by 2030.

Nickel Supply Chain Challenges

Massively scaling up an industry or product is highly challenging, and that even goes for nickel, the metal with a coin named after it. “According to the U.S. Geological Survey (USGS) for 2023, Indonesia accounted for 42% of global nickel reserves and 51% of global mine production,” the Institute for Energy Economics and Financial Analysis (IEEFA) writes. Having so much of the market relying on one country comes with risks. Any disruptions or difficulty further scaling up production can send nickel prices upward. Indeed, there are concerns are potential shortages of high-purity Class I nickel by 2028. So, there’s a push for more investment into new mining and refining projects both in Indonesia and, more importantly, outside of it.

As you may expect by now, returning to the matter of the US, we currently import almost all of the nickel we use, with heavy reliance on Indonesia, the Philippines, and even Russia. Supply chain stability, geopolitical risks, and environmental responsibility are thus major concerns.

US Energy Independence & AEMC

Alaska Energy Metals Corporation (AEMC), a North American nickel junior mentioned at the top, indicates that it is focused on addressing this problem by advancing projects that prioritize local supply chains and uphold rigorous environmental and social governance (ESG) standards. It wants to become a critical player ensuring the US has a sustainable nickel supply to power our ongoing cleantech revolution.

Greater energy security, more sustainable resource development, a more competitive market — these are things AEMC is trying to bring to the table. Its projects are also focused on producing high-grade nickel sulphides, improving processing efficiency as well as sustainability. Its flagship project is the Nikolai Project in Alaska (as one might have guessed from the company name). “It is situated in a resource-rich region with favorable infrastructure and regulatory support,” the company says.

As a large-scale polymetallic deposit, the Nikolai project contains significant quantities of:

• Nickel, cobalt, and chromium for EV batteries.
• Platinum and palladium for clean energy technologies.
• Copper and iron for renewable energy systems.

Over 8 billion pounds of nickel in combined inferred and indicated categories are expected there, based on a recent analysis. Also, the project does actually have good proximity to transportation and power infrastructure. With this Nikolai Project, AEMC aims to become a major domestic nickel producer in the US.

Closer to the Nikolai Project than most of the US, AEMC is also moving forward with its Angliers-Belleterre Project in Quebec, where it is targeting high-grade nickel-copper sulphide deposits while also exploring the potential for white hydrogen production.

The following are some other recent steps forward by the company:

• Extending Eureka Deposit, Powering U.S. Energy Independence: AEMC reported exceptional assay results from its 2024 drilling at the Eureka Deposit, extending mineralization by 1.8 km. With a total drilled extent of 5.5 km, the project highlights significant nickel and polymetallic potential.
• Expanding High-Grade Mineralization at the Eureka Deposit: AEMC’s 2024 drilling program at the Nikolai Project has extended the high-grade core zone of the Eureka Deposit by 600 meters to the southeast. The discoveries increase the strike length of the high-grade core zone to 2 kilometers.
• Promising Discoveries at the Canwell Property: The Canwell claim block, part of the Nikolai Project, has revealed additional nickel and critical mineral potential. Drilling at three key prospects — Emerick, Odie, and Upper Canwell — has delivered promising results. The findings strengthen AEMC’s vision for district-wide exploration, confirming the Nikolai Project’s status as a hub for critical minerals.

Despite some recent trends away from common-sense ESG principles, Alaska Energy Metals Corporation indicates that it is dedicated to sustainable mining practices, emphasizing environmental, social, and governance (ESG) principles. In its operations, the company is focused on minimizing environmental impact during exploration and development, implementing advanced quality assurance protocols to ensure data integrity, as well as engaging with local communities and stakeholders to promote transparency. In other words, all of the good stuff we want to see from a modern company, and especially a mining company. It seems that AEMC is indeed interested in helping to secure critical materials essential for more and more clean energy, EVs, and national security — as well as making money in the process.

You can click here for more information on Alaska Energy Metals Corporation and its projects.

This article was sponsored by New Era Publishing.