The raise for vertical integration thru JVs/M&A impacting EV industry players is heating up and on the cusp of explosion.
Apologies for the long explanation to your question "Could MNS become a TO target". The answer is YES, all investment options are likely be on the table for MNS. This is why this deal with TESLA so important - will open many doors for MNS and things will happen faster in all aspects for the business.
1. Geopolitics - China has been acquiring and investing in resource stocks over the last 10 years, leaving behind the US. Their Belt and Roads initiative has won many African nations over. Finally the US has got their act together (in a democracy decision making is always slow, a separate conversation!!). Incentivizing US based manufacturing, technology and mining is on top of agenda for Democrats and Republicans. Inflation Reduction Act and New Tax Credit from Jan 2023 to incentivse US based EV battery component manufacturers tipped the scale dramatically. These are significant long term industry changes we will see big shifts back to US. TESLA has already scaled back their investment in Germany and to refocus on US manufacturing base. TESLA is more than likely to invest more funds in M&A, JV and 100% acquisitions. Elon himself has openly said this (if you can trust him). This is a massive game changer to MNS.
2. Don't worry about resources in allied countries - Resources in Aus will be predominantly owned EV manufacturers from the West. Therefore there is no real rush for the US EV manufacturers to secure Aus resources. The Aus government will ensure that all is not going to China.
3. The real raise is in Africa as China is very active - everyone knows this. This region has some of the best EV resources. Bring on Tanzania Nachu project. The below confirms (Lithium) that the raise is on!
4. MNS is an attractive M&A play - MNS is an integrated play with a large Graphite resource + proven technology backed by the biggest EV manufacturer. MNS has gone beyond planning stage and is now progressing fast to production. Yes, there will be delays and challenges, but they have made massive progress. Very soon, analysts will likely build models to value the business on future cash flows. I believe that the market value is future looking and the value of MNS today, should reflect what they are likely to achieve in 12 to 18 months from now. At present , I don't think the current MC represents future growth of MNS.
Finally, I am in.
MNS Price at posting:
38.5¢ Sentiment: Buy Disclosure: Held
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