Don Lay: Rare Earths are Essential for the EV Revolution
Don talks about his experiences during the previous bull market in rare earth metals. This market came to investors attention rather rapidly in 2009 after James Dines wrote a newsletter on the subject. The last bull market was a wild time with some companies shares moving up 8x to 20x. Billions were invested into exploration with little in the way of results.
China still controls the majority of the rare earth market, along with a monopoly on the processing of these metals. Rare earths are not that scarce, but they are difficult to find in economic quantities. They are needed in small amounts in electronics. Lynas Corp. is the only significant producer outside of China.
Battery metals, particularly lithium and cobalt, have received a lot of attention and recently have sold off. It’s clear that the market for electric vehicles is growing quickly and that they will reach mass adoption. In urban areas, they make a lot of sense, and the next ten years will be exceptional.
Electric Vehicles require rare earth materials in their electronics and magnets. While batteries are heavy, electric motors are quite light.
He likes Jim Rogers, Rick Rule, Marin Katusa and others that are well known in the resource space. His approach is to listen to different voices and options — even those not in your area of expertise.
He discusses Medallion and their unique approach to the rare earth space.
Time Stamp References:
0:40 – 2009 Investor awareness of rare earths.
3:00 – Performance in the last bull market.
4:15 – China’s control of rare earths and trade disputes.
7:00 – E.V. Market and need for magnet metals.
10:30 – Advantages of electric motors.
12:30 – Lag time for projects and capitalization.
15:00 – Listen to experts and contrary opinions.
17:15 – Trade tensions with rare earths.
Talking Points From This Weeks Episode
• Observations from the last rare earth bull market.
• China is not afraid to use their advantageous position on rare earth.
• Why these metals are essential.
• E.V. adoption will require more rare earth metals.
• Capital for mining is hard to obtain in bear markets.
Donald M. Lay is President/CEO & Director of Medallion Resources. Don focuses on the Company’s corporate strategy and finance. Don has over 25 years of experience in public and private venture capital, corporate communications, and international business. He has served as a senior officer and director for several public companies including mineral-exploration companies International Taurus Resources Inc, American Bonanza, and Medallion Resources Ltd. Don was a principal at China MobileSoft, a seed-funded, embedded-software supplier that delivered solutions to Chinese telephone handset makers that provided an exceptional return to shareholders. Before entering the venture-capital world in 1994, Mr. Lay invested 13 years in the enterprise software arena in development, sales, and support. Don holds a Bachelor of Science degree in Computer Science from the University of British Columbia.