Trump’s Next Trade War and Why It’s Going to Hurt
Whenever the electric vehicle boom comes to mind, there’s always one powerful quote that comes to mind.
I’ll bet you know the one I mean.
Decades ago, Rashid bin Saeed Al Maktoum delivered these prophetic words to us:
My grandfather rode a camel, my father rode a camel, I drive a Mercedes, my son drives a Land Rover, his son will drive a Land Rover, but his son will ride a camel.
He was the first Prime Minister of the United Arab Emirates and his warning that the UAE’s oil would run out within a few generations.
I know the thought of transitioning away from oil and the traditional combustion engine is easy to forget, while global crude inventories overflow during this pandemic.
Let’s be fair though, it was kind of nice filling up the Jeep for under $2 per gallon.
Yet, the grim future laid out by Sheikh Rashid may become a reality sooner than you think.
He’ll have to change that last line a bit…
Securing the Future of Electric Vehicles
Lately, we’ve talked endlessly about one vital piece of legislation that’s working its way through Congress.
Look, it’s no secret that these strategic metals are driving battery technology today. Without access to those key materials, and the EV boom would die overnight.
You wouldn’t see a single one of Tesla’s best-selling Model 3’s on the road today.
But I’m talking about more than the big three — lithium, cobalt, and nickel.
You see, rare earth plays a wildly important role in electric vehicles.
Those difficult-to-pronounce rare earth metals used to make high-powered magnets are a clear example.
It’s called neodymium, and just one of these important metals that we’ve been telling our readers about for years, long before the EV revolution truly got underway.
How powerful do I mean?
Put it this way, a neodymium magnet that weighs just a couple of grams can lift a thousand times its own weight.
Still haven’t heard of it?
Well, just look around you.
Not only are these powerful magnets found in the most advanced medical devices, but they also play a major role in electronics.
You’ll find them on your laptop, PC, tablets, power tools… you name it.
Of course, you’ll also find them in the anti-locking braking system in your car.
Neodymium is also a crucial component in the electric motor.
If you’re going to utilize magnets to take over the auto industry, you might as well use one of the most powerful magnets on the planet.
Although electric vehicles account for about 8% of sales, right now that market share is expected to grow about fourfold in less than five years!
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By 2030, EV sales are projected to overtake internal combustion cars.
You can see where I’m going with this.
People are finally starting to catch up to us, too.
Only a few months ago, the Pentagon announced that it was planning to stockpile a six-month supply of neodymium iron boron magnets which, as you may have guessed by now, are essential to the defense and weapon technology.
And just to give you an idea of the kind of profits that the smart money is hauling in right now, take a glance below:
Texas Mineral Resources Corp. (OTC: TMRC) recently acquired, (via USA Rare Earth LLC) the neodymium iron boron magnet manufacturing equipment from Hitachi America, Ltd.
Early investors were rewarded handsomely, as the company took control of the only rare earth magnet production facility in the country.
In my latest investment report, I outline five ways individual investors like us can capitalize on these explosive opportunities from the world’s never-ending thirst for strategic metals. As a premium member of our Energy and Capital investment community, you can access it directly for free right here.
Still, don’t think you can make money off of Trump’s trade war with China?
Until next time,
A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.
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