Companies Tighten Their Hold on Vital Green Transition Commodities

By Patricia Miller

In this article

  • Loading...
  • Want to see what you should be buying? Check out our top picks.

Find out more about how climate change and the green revolution is fundamentally changing the life cycle of the commodities industry

The commodity trade is fundamentally driven by supply and demand. In the past, commodities like copper, steel, cobalt and lithium have been considered cyclical, fluctuating in and out of popularity. But the green revolution is changing that. Here we discuss in reference to Intel (NASDAQ: INTC), General Motors (NYSE: GM), Vale (NYSE: VALE), and Defense Metals Corp. (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D).

Traditionally subject to cyclical pricing trends, now structural shortages are forcing commodity prices to stay elevated. This is leading many companies to look at how best to prepare for the future.

Intel (NASDAQ: INTC) is building at least two of its own semiconductor fabrication plants in the United States. Tesla CEO, Elon Musk, has hinted at Tesla mining its own lithium. And legacy carmakers like General Motors (NYSE: GM) are securing their commodity supplies directly, without relying on third-party middlemen.

This illustrates the level of fear and uncertainty in the market, driving companies to take drastic action to secure their vital supplies.


One underappreciated commodity in this area is rare earths. These are elements often found with other precious metals and they also have critical importance to the technical revolution.

In 2020, COVID-19 led the rare earths industry to endure a supply chain shock. However, the rare earths industry enjoyed a rapid rise in demand as this wore off. According to Fortune Business Insight, the market is expected to grow from $2.8bn in 2021 to $5.5bn in 2028 at a CAGR of 10%.

Indeed, rare earths still represent an undiscovered commodity trade because many people remain blind to their importance.

There’s added risk to the security of rare earth supplies because the majority of rare earths are mined and processed in China. This presents a national security issue for western nations and a supply concern for businesses.

This is something Defense Metals Corp. (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is hoping to change. Defense Metals is an advanced rare earths mineral exploration and development company with western promise. Its Wicheeda deposit in Canada has the potential to become a globally significant producer as demand for these crucial commodities ramps up.


Rare-earth elements are used in the electric power market, defense industry and in the production of green energy technologies. These include rare earth magnets used in wind turbines and permanent magnet motors for electric vehicles.

The current production of rare earths Neodymium (Nd) and Praseodymium (Pr) is going to have to grow by 100% in the next 10 years to accommodate the electric vehicle (EV) production estimates that are based on government EV adoption targets.

But that’s just the EV numbers. With all the other innovations rare earths are used in, global production must ramp much harder and faster if it hopes to keep up.

Strategically positioned along a major forestry service road, the Wicheeda property sports excellent infrastructure, including a major hydroelectric power line, a major gas pipeline, and a nearby Canadian National Railway and major highways.

Here, at its Wicheeda Rare Earth Element (REE) deposit, Defense Metals has commenced diamond drilling.

The 2022 Wicheeda REE diamond drill campaign is expected to include up to 1,500 meters of pit geotechnical and hydrogeological drilling, 1,500 meters of further resource delineation and near resource exploration drilling, and up to 2,000 meters of 8.5 cm diameter PQ core for continued metallurgical testing. A unique advantage of the Wicheeda REE Project is the production of a saleable high-grade flotation concentrate.

Defense Metals boasts a dream leadership team in the rare earths space sporting experts with significant metals and mining experience in both a professional and academic capacity. It also has strategic advisors with links to Tesla, the CIA, and the defense industry.


Demand for rare earths is mounting, igniting reason to believe Defense Metals’ cache of rare earths will be increasingly sought after in the coming years.

As demand soars, the price is likely to stay elevated and may climb much higher. Considering Defense Metals’ current preliminary economic assessment (PEA) bases its future profitability on Nd and Pr prices of $100/kg, there’s serious upside potential for patient investors who get in early.

Additionally, the company is well funded to de-risk and advance its Wicheeda property. In just two months, after gaining 100% ownership of Wicheeda and publishing its PEA, the company privately raised a whopping $4.5m to further de-risk and advance the project.

Ultimately, Defense Metals is an undervalued stock with the unparalleled potential to grow. It has macro tailwinds at its back and an exceptional team leading it on this lucrative journey.

The Wicheeda deposit has enormous scope for significant production expansion and is near all the necessary and desired infrastructure.

Moreover, when it comes to ESG, Defense Metals wants to ensure it aligns its objectives favorably. Defense Metals stock trades competitively to peers with strong advantages in grades, mineral concentrate and near-term production potential.

Tesla recently struck a deal with Vale (NYSE: VALE) for low carbon nickel. This agreement reflects a shared commitment to sustainability. Vale’s target is to deliver 30% to 40% of Class 1 nickel sales into the fast-growing electric vehicle industry. Meanwhile, Tesla disclosed that nearly half of its vehicles in the first quarter were equipped with lithium iron phosphate (LFP) batteries.

Intel (NASDAQ: INTC) has selected a diverse Ohio-based team to manage the early excavation work for its two new leading-edge chip factories in Ohio. The factories, known in the industry as fabs, will help boost chip production to meet the surging demand for advanced semiconductors, powering a new generation of innovative products from Intel and serving the needs of foundry customers as part of the company's IDM 2.0 strategy.

General Motors (NYSE: GM) is invested alongside industry leaders and start-ups alike and is sourcing as much as possible from North America and strong trading partners like Australia. This includes rare earth materials, permanent magnets, cathode active material and lithium, as well as the cobalt agreement announced with Glencore.

Explore more on these topics:



This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the “Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Defense Metals Corp to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of one hundred thousand U.S. dollars to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher’s ability to provide unbiased information or opinion.


Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to adversely affect share prices. Frequently companies profiled in our articles experience a large increase in share trading volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in share trading volume and share price may likely occur.


This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security.


Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position.

This communication is based on information generally available to the public and on an interview conducted with the company’s CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher does not guarantee the accuracy or completeness of the information. Further, the information in this communication is not updated after publication and may become inaccurate or outdated. No reliance should be placed on the price or statistics information and no responsibility or liability is accepted for any error or inaccuracy. Any statements made should not be taken as an endorsement of analyst views.


The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. The Publisher has no access to non-public information about publicly traded companies. The information provided is general and impersonal, and is not tailored to any particular individual’s financial situation or investment objective(s) and this communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor or a personal recommendation to deal or invest in any particular company or product. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR+ and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results.


This communication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. Statements in this communication that look forward in time, which include everything other than historical information, are based on assumptions and estimates by our content providers and involve risks and uncertainties that may affect the profiled company’s actual results of operations. These statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others: the success of the profiled company’s operations; the size and growth of the market for the company’s products and services; the company’s ability to fund its capital requirements in the near term and long term; pricing pressures; changes in business strategy, practices or customer relationships; general worldwide economic and business conditions; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative initiatives affecting the company’s business.


By reading this communication, you acknowledge that you have read and understand this disclaimer in full, and agree and accept that the Publisher provides no warranty in respect of the communication or the profiled company and accepts no liability whatsoever. You acknowledge and accept this disclaimer and that, to the greatest extent permitted under applicable law, you release and hold harmless the Publisher from any and all liability, damages, injury and adverse consequences arising from your use of this communication. You further agree that you are solely responsible for any financial outcome related to or arising from your investment decisions.


By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here and acknowledge that you have reviewed the Disclaimer found here If you do not agree to the Terms of Use, please contact to discontinue receiving future communications.


All trademarks used in this communication are the property of their respective trademark holders. Other than, the Publisher is not affiliated, connected, or associated with, and the communication is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks other than

AUTHORS: VALUETHEMARKETS and Digitonic Ltd and our affiliates are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above. This article does not provide any financial advice and is not a recommendation to deal in any securities or product. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

ValueTheMarkets do not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above piece. ValueTheMarkets have been paid to produce this piece by the company or companies mentioned above. Digitonic Ltd, the owner of, has been paid for the production of this piece by the company or companies mentioned above.

Sign up for Investing Intel Newsletter