Election aside, the United States is in a boom thanks in part to the introduction of the Inflation Reduction Act (IRA) by Biden 2 years ago. Despite what the US electorate may believe, their economy is the strongest of all the G7 at 2.8% GDP growth. UK 0.5%, Eurozone 0.4%, as at September 2024.
The Biden Administration's implementation of the IRA has already produced significant benefits for the US. Renewable energy technologies have so far generated $115 billion in investment, 42,000 permanent manufacturing employment, and 170,000 jobs are expected to be created in the years to come. However, the most significant funds flow to big businesses to drive manufacturing and investment. Encapsulating a trillion plus in spending, leveraging over $3 trillion in private investment. The likes of POSCO, HAMWA, Mitsubshi which we have non-binding MOU with are poised to benefit.
So, the real question is, will the Trump/Elon administration sabotage the momentum already created? Answer: Not likely! That's because Trump and his pro-EV buddy Elon support policies which are the new global agenda anyhow. So, the fundamentals remain. The new administration will embrace it because it aims to reduce China's processing dominance of critical minerals. They may alter the form of it slightly somehow, ie, give it a trumpity-sounding brand name, but in the end there's no turning back on its overarching objective.
Significantly though, the US has no reserves of graphite and needs graphite including where it is most vulnerable, the 'processing' of it. IMO, there may be further incentives to make Australia a greater sovereign partner in a Trumped-up version.
Since RNU is the only Australian shovel-and-financed-ready project, and has a lot of pre-FID activity going on behind the scenes, we are poised to prosper.
Patience will be rewarded.
ALL IMO, DYOR, GLTA(Patient)H
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