https://www.*****.com/commentaries/2023-07-11/EV-battery-independence-and-the-new-U-S-manufacturing-supercycle.html

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EV battery independence and the new U.S. manufacturing supercycle

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Sprott

Tuesday July 11, 2023 15:00

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Main Takeaways

• Energy transition metals miners posted strong results in June, with uranium mining equities leading the group. Junior uranium miners gained 18.93% as measured by the Nasdaq Sprott Junior Uranium Miners™ Index7.
• The U.S. is entering the early stages of a manufacturing supercycle driven by massive investment in the energy transition. At the same time, China's two-decades-long commodities dominance has likely crested.
• Among other measures, U.S. industrial policy is promoting the build-out of a secure and resilient domestic EV battery supply chain using strategic investment, tax credits and policies designed to spur industry efforts.
• Considerable private sector investment has already flowed into the clean energy sector, but the U.S. needs to keep strengthening its domestic manufacturing capabilities and reducing its dependence on imported batteries. If not, the U.S. risks repeating past mistakes like its reliance on foreign oil.
• The physical metals markets posted mixed results in June. U308 uranium and copper were the top performers, while the rebound in lithium prices ran out of steam and nickel declined slightly. Copper and nickel inventories hit new lows.