So, around 75% of the world's titanium supply currently comes from countries who aren't going to be giving the US any ... Russia, China etc..
There's been a big increase in demand over the last few years, and that will only be exacerbated by the supply shock as a result of global political conflict.
To spell it out, aerospace = planes / missiles / drones etc..
Anyone noted there are a few wars going on right now? Where's Europe going to get its titanium supply from over the coming years?
Year old article but sums things up nicely:
https://thedeepdive.ca/boosting-titanium-production-amid-heightened-reliance-on-russia-china-supply/AI cheat sheet:
"The demand for titanium is higher than the supply, and the global supply chain is limited.This has led to increased prices. - Civil and military technology:Titanium is important for advanced technologies in these sectors.
- Aerospace:Two-thirds of titanium in the EU is used in civil aerospace.
- Other industries:Titanium is used in chemical technologies, automotive, robotics, defense, and additive manufacturing.
- Limited geological deposits:Although titanium is common in rocks and soils, the deposits that are suitable for mining are much smaller.
- Limited domestic production:Some countries, like the EU, have limited capacity to produce titanium domestically.
- Reliance on imports:The EU is a net importer of titanium, importing more than it exports.
Price
The limited supply and growing demand for titanium has led to increased prices. Supply chain vulnerability
The supply chain for titanium is vulnerable to disruption.For example, Russia is a major source of titanium for the aerospace industry.
We have other key metals / REE needed by the aerospace industry in particular.
(Massive) If Enova can prove up what we have, put out a favourable PFS and get funding, we should be in line for a massive re-rate.
I wouldn't be at all surprised if ENV get bought out within the next 12-18 months if the above comes true. Sitting duck at this market cap.
(20min delay)