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Unlocking America's Clean Energy Revolution

As the world shifts towards a more sustainable future, the spotlight is intensifying on materials critical to the energy transition. Nickel, while flying under most investors' radar, is proving to be just as indispensable as copper, lithium, and uranium.

Traditionally, nickel has been used for industrial purposes — over three-quarters of global demand comes from sectors like steel alloy production and electroplating as shown below.

However, this metal is now finding renewed importance in powering the green revolution, particularly within electric vehicles (EVs). The energy metal has found a secure home in this rapidly growing sector, attracting the attention of mining giants as its applications continue to expand.

The critical metal, having unique physical properties of ductility, malleability, corrosion resistance, heat resistance, and electrical and thermal conductivity is now being explored for various industrial applications like: 

• Renewable energy storage systems, e.g. batteries for EVs
• Aerospace and defense components like jet engines, gas turbines, and landing gears
• Along with its advancements in the stainless steel industry

Charging Ahead: Nickel’s Role in EV Batteries

One of nickel’s most significant recent applications is in producing EV batteries.

• An average EV battery contains 64 pounds (29 kg) of nickel.

Nickel boosts the energy density of lithium-ion batteries, allowing EVs and electronics to last longer between charges. It also improves thermal stability, ensuring safer and more reliable performance across a range of temperatures.

Surprisingly, there is 5X more nickel than lithium in these batteries and nickel is a much more rare commodity on earth.

So, on the bright side, this reflects how important nickel has become in the clean energy transition, particularly for America.

Nickel is essential in producing battery cathodes, particularly due to its high energy density. The result is a battery that holds more charge for less weight, making it a crucial component of lithium-ion batteries that power EVs.

In the early iterations of lithium-ion batteries, equal amounts of nickel, manganese, and cobalt were used.

However, modern batteries are increasingly reliant on nickel, with some compositions containing as much as 80% nickel. This trend is likely to continue, making nickel a cornerstone for future battery technologies.

Consequently, it is now listed as a critical mineral by countries like the U.S., the EU, and Japan.

Navigating the Ups and Downs

Nickel prices have been on a rollercoaster lately, with short-term highs driven by speculation and improving economic conditions.

FACT: 11 nuclear plants in Illinois and Pennsylvania produced more power than all solar in the U.S. in 2021.

It was in March 2022 when nickel prices reached the highest peak in over a decade as the chart shows.

Fast forward in August 2024, prices briefly surged to $17,035 per metric ton before retreating again due to rising inventories. The ongoing supply glut, fueled by Indonesia’s dominance in the market, continues to pressure prices.

While demand for nickel in EVs remains strong, oversupply keeps prices lower than anticipated. As 2024 unfolds, nickel prices may stay subdued, but long-term demand growth could eventually shift the market.

Nickel’s Future Looks “Silvery-White”

Electric vehicle manufacturers are steadily increasing the amount of nickel in their batteries to improve efficiency and range. For instance, EVs sold in 2023 used 8% more nickel than those sold in 2022.

As EV sales continue to surge—fueled by government policies and net-zero pledges—the demand for nickel is projected to skyrocket.

In 2022, global nickel demand stood at 3.1 million tonnes, with 478,000 tonnes attributed to EVs and other cleantech industries.

By 2030, this demand is expected to reach 2 million tonnes from EVs alone, climbing further to 3.4 million tonnes by 2040. Even in a conservative climate scenario, demand is set to more than double by 2050.

However, towards the latter half of the century, nickel demand for battery chemistries may plateau – especially as society ramps up recycling - but it is still anticipated to be 9x higher than current levels.

Clearly, nickel’s future looks promising, especially as the EV market accelerates its global footprint.

So, Can the Market Keep Up?

Despite this strong demand outlook, the current nickel market faces challenges, primarily due to a supply glut. Indonesia, which now accounts for over 50% of global nickel production, has been at the center of this supply boom.

In 2023, Indonesia produced a massive 1.58 million tonnes of nickel, thanks in large part to Chinese investments, especially through China’s Belt and Road Initiative.

The country’s cheaper labor costs and relaxed environmental regulations have made it an attractive destination for nickel smelting and production.

While Indonesia’s rapid production expansion has been advantageous for global nickel supplies, it has contributed to a market surplus—projected at 36,000 tonnes this year—driving down prices. Furthermore, the greenhouse gas emissions saved by nickel – rich EV batteries is more than eclipsed by the coal burning electric power generation plants that power nickel smelting and refining plants in Indonesia. 

Supply Deficits Waving

While supply currently outweighs demand, this imbalance is not expected to last. As the world nears 2025, the nickel market is projected to enter a supply deficit, which will widen significantly in the years following.

By 2030, there will likely be a substantial gap between supply and demand, with insufficient new nickel mines to keep pace with the rising need.

Source: IEA

In addition to the looming supply shortage for mined nickel, a more severe shortfall is expected in nickel sulphate—the refined form of nickel used in EV batteries.

Building nickel sulphate processing facilities is quicker than establishing new mines, but the massive increase in required supply means that bottlenecks are inevitable.

The current low nickel prices might be discouraging new investment, but for forward-looking investors, the anticipated supply-demand gap could create lucrative opportunities by the end of this decade.

Just Charge It, and They’ll Drive

As the world’s appetite for nickel skyrockets—fueled by the electric vehicle (EV) revolution—investors are starting to realize what Alaska Energy Metals has known all along: nickel is the future.

Nickel is the unsung hero powering the batteries that keep EVs on the road longer, and it’s in shorter supply than most realize. With EV sales surging, it’s clear that more nickel is needed—and fast.

With the U.S. government pushing for a cleaner, more sustainable future, the spotlight is on domestic sources of essential minerals—and Alaska is prime hunting ground.

The state is an untapped reservoir of critical and strategic metals, with projects like the AEMC’s Nikolai Project poised to contribute to the burgeoning EV market.

The company is wasting no time—full steam ahead as they ramp up exploration and development to meet the growing demand. They know the supply gap is coming, and they’re positioning themselves to be a top player when nickel prices inevitably soar.

So, let’s dive into what makes Alaska Energy Metals one of the most exciting nickel players in North America and why savvy investors should be paying close attention. For your understanding, we break down each aspect of the company’s business through our old-time favorite term P.R.O.F.I.T.

“Uncovering the materials of tomorrow responsibly, while generating superior returns and putting the communities in which we work, first.

STOCK SPOTLIGHT

Alaska Energy Metals

(TSX.V: AEMC) (OTCQB: AKEMF) (FRA: V7F)

Alaska Energy Metals is spearheading the development of a large-scale nickel project in the interior of Alaska, aiming to supply the essential strategic metals required to secure America’s energy future and drive the energy revolution.

According to the company slide presentation, nickel and other critical and strategic metals are important for America’s electric energy expansion.

NOTE: Investing is high-risk and there are no guarantees that any target prices are hit.

[P]eople

The key members at Alaska Energy Metals include:

• Mr. Gregory Beischer - CEO, President, and Director:  Mr. Gregory Beischer leads Alaska Energy Metals as CEO, President, and Director. He previously founded Millrock Resources, a successful project generator, which has now evolved into AEMC. His first career was with INCO – at the time the largest nickel miner in the world. With over 40 years of experience as a geologist and mining engineering technologist, and a champion of Alaska mineral development for 30 years, Beischer has secured more than $50 million in capital from top mining companies and investors for metallic mineral exploration projects throughout Alaska, the state he proudly calls home.
  
  With technical depth in magmatic nickel-copper–platinum geology, Mr. Beischer’s leadership position also includes past President of the Alaska Miners Association and current board member of Alaska’s Resource Development Corporation. He is also a member of the American Institute of Professional Geologists. His expertise and vision are instrumental in driving Alaska Energy Metals forward.
• Corri Feige – Director and Chair of Corporate Governance: Backing up the team is Corri Feige, Director and Chair of Corporate Governance at AEMC. She is a seasoned geophysicist and engineer with over 35 years in the mining, oil, and energy sectors. As the former Commissioner of Natural Resources at the Alaska state government level Ms Feige is very well versed in Alaska mine permitting. Corri actively supports resource development as a board member of Alaska Resource Education and Alaska Unlimited.
• Mr. Tyron Breytenbach - Director: Mr. Tyron Breytenbach, Director at AEMC, is an experienced former equity analyst at Cormark Securities and Stifel Canada. Before transitioning to capital markets, he had an exciting stint for more than a decade as a geologist specializing in exploration, resource estimation, and grade control. He started his career with the Anglo Platinum Scholarship Program where he gained maximum experience with the Bushveld Intrusive Complex.
• Mr. Mark Begich – Director: Mr. Mark Begich, also a Director, is a former US Senator that represented Alaska in Washington DC. He has been a strong advocate for responsible resource development in Alaska.

The team doesn’t end here. The management is supported by Kyle Negri, Vice President of Exploration, Gabe Graf – Chief Geoscientist, Kevin Ma Chief Financial Officer, and many more diverse team members who are in charge of AEMC’s success.

So, now that we know who is in charge, let’s take a closer look at the other elements key to AEMC’s success.

[R]esources

For an exploration-stage mining company like Alaska Energy Metals, the most valuable resource isn’t just what lies beneath the ground—it’s the cash available to fuel growth.

AEMC is in a strong financial position, with over CAD$8.68 million raised through two rounds of offerings. This includes $5 million from a second round following the $3.67 million closed in July.

With CAD $1.5 million in cash on hand and no debt, coupled with this new funding, the nickel junior ensures it is fully financed for its recently completed drilling program at the Nikolai Nickel Project in Alaska.

This gives the company the flexibility to focus on advancing its exploration programs without the immediate need to raise more capital.

In a sector where many juniors struggle with funding, AEMC stands apart, ready to push forward. Without the burden of debt and with cash reserves to fund near-term activities, AEMC has a solid foundation for future growth.

Now, let’s dive into AEMC’s exploration programs, both current and future plans.

[O]perations

Alaska Energy Metals Corporation: A Strategic Nickel Exploration Journey

Alaska Energy Metals Corporation is leading an impressive exploration campaign across its Nikolai Nickel Project, nestled in a highly favorable mining jurisdiction.

Located just 80 km south of Delta Junction, this project benefits from excellent infrastructure, with paved road access to the deep-water Port of Valdez and the Alaska Railroad within 100 km.

The Nikolai Nickel Project encompasses two claim blocks, Eureka and Canwell, covering a total of 26,400 acres. Eureka is fully owned, while AEMC has the option right to purchase a 100% interest in Canwell.

A substantial deposit of nickel, with other critical and strategic metals, has been discovered on the Eureka claim block and has been named the Eureka deposit, contained with the Eureka zone of mineralization which can be traced across the entire claim block.

Earlier this year AEMC published a Mineral Resource Estimate. In the Inferred Resource category there is more than 4.2 billion pounds of nickel documented. In the higher confidence Indicated Resource category there is more than 3.9 billion pounds of nickel. There are other critical metals included as accessories in the deposit: cobalt, chromium, platinum and palladium. There is also substantial iron and copper.

Please refer to this link for a statement of the Company’s Mineral Resource Estimate.

The presence of historical mining roads enhances operational logistics, with adjacent claims owned by Kobold and Resolution creating opportunities for collaboration.

In 2024, AEMC’s exploration strategy will focus on increasing resource grades in the southeast, supported by metallurgical studies to evaluate recovery rates. Initial drilling aims to expand inferred tonnage, specifically targeting rock samples with impressive grades of 0.89-1.0% Ni along the strike.

In a sector where many juniors struggle with funding, AEMC stands apart, ready to push forward. Without the burden of debt and with cash reserves to fund near-term activities, AEMC has a solid foundation for future growth.

Now, let’s dive into AEMC’s exploration programs, both current and future plans.

This proactive approach positions AEMC to tap into the growing demand for nickel in the EV market.

With such strong fundamentals, Alaska Energy Metals is primed for significant advancements as exploration unfolds in this promising area.

Canwell Block Surface Prospects: High-Grade Potential

Building on this momentum, AEMC is advancing its exploration efforts in the Canwell Block, where recent surface sampling has revealed zones of massive and disseminated sulfides, including pyrrhotite, pentlandite, and chalcopyrite, with exceptionally high concentrations of nickel, copper, and precious metals like platinum and palladium.

The 2023 exploration program, using advanced methods like CSAMT, TEM, and reprocessed historical data, identified four high-priority drill targets for 2024: Upper Canwell, Odie, Glacier Lake, and Emerick.

The Odie Prospect is particularly noteworthy, showcasing a strong magnetic conductive zone linked to nickel-copper occurrences at the surface. Previous drilling may have missed deeper, high-potential zones, prompting AEMC to execute a 1,200-meter drilling program to explore these targets fully. Results are expected to be published soon.

Expanding Horizons: Angliers Nickel Project

In addition to the Nikolai Nickel Project, AEMC is developing its Angliers Nickel Project in Quebec, which holds promise for high-grade Kambalda-style nickel-copper mineralization. A phased exploration program is set for fall 2024, focusing on data reprocessing and ground surveys to identify the best exploration targets.

Collectively, these initiatives position Alaska Energy Metals Corporation as a significant player in meeting the escalating demand for nickel in the green energy sector, reinforcing its integral role in America’s green revolution.

[F]uture

Currently, AEMC’s prime focus is their flagship Nikolai Nickel Project and eventually become a major player in the U.S. nickel market.

You can see, the first and the most exciting catalyst is its Eureka deposit. The company is all set to expand the size and grade of this deposit. Potentially Eureka will be a deposit larger than Canada Nickel’s Crawford deposit. Canada Nickel is several years ahead, but it is interesting to note that CNC’s market cap is $175M……while AEMC’s is $23M.

Secondly, the company is exploring the Canwell site where they're targeting high-grade massive sulfides. A successful discovery here could significantly enhance their resource base and drive even more value for investors. This exploration is a key part of their growth strategy, offering strong potential to unlock additional resources and strengthen their position in the market.

On the funding side, there's a real possibility of securing government support and attracting strategic investors. For those looking to invest early, AEMC offers a unique opportunity with a low valuation and solid growth potential ahead.

Moving on, let’s take a closer look at the capital structure.

[I]nvestors

AEMC boasts of strong investor confidence, with 60% of the company in investor hands. This majority ownership highlights the trust in AEMC’s future growth and the exciting potential investors see in its expanding opportunities.

Additionally, the management and directors hold 6% and the Vancouver family office owns 15% of the shares, respectively.

As of September 13, 2024, the capital structure looks this way:

You can see that AEMC’s shares, options, and warrants are well-balanced. This means that the company is quite smartly handling its capital. Apart from boosting investor confidence, it also provides flexibility for future funding and strategic opportunities.

With 234 million shares fully diluted, AEMC is set for growth and ready to tap into its full potential as more investment opportunities come along through options and warrants.

[T]riggers

As discussed before, Nickel is vital for the US energy transition, but current supplies can't keep up with the rising demand. Furthermore, sourcing requirements complicate matters by limiting metals to Free Trade countries.

However, even if these countries sent every ounce of their nickel to the US, it still wouldn’t meet the projected demand, putting the nation at risk of supply disruptions.

This is where the Nikolai project shines, providing a secure domestic source of nickel, copper, cobalt, and more. Moreover, AEMC is dedicated to responsible and ethical mineral development that aligns with the U.S. environmental, social, and governance standards.

As demand continues to surge, the Nikolai project is not just a solution—it's a beacon of hope for strengthening America’s energy independence and ensuring a sustainable future.

Likewise, the Canwell Block project shows great potential, with AEMC’s recently completed drilling program results coming up for release later this year. Last but not least, the Angliers Nickel Project is gearing up for an exciting start this year, as it embarks on its exploration phase. Though still in its early stages, the project has the potential to unlock valuable nickel resources.

Right now, the nickel market is in a bit of a lull. But this phase won’t last long. As the EV revolution charges ahead, demand for nickel will only surge.

As the saying goes…… “In mining, if you are not a Contrarian, you will be a Victim.” Recognizing the opportunity, and buying in while prices are low can be really rewarding.

Alaska Energy Metals

(TSX.V: AEMC) (OTCQB: AKEMF) (FRA: V7F)

6 Reasons To Put Alaska Energy Metals On Your Radar

1. Experienced Alaskan Management Team: Led by Alaskan Greg Beischer, a seasoned exploration geologist and executive, and supported by a technical team of fellow Alaskans, the company possesses a skilled and experienced management group capable of diligently executing complex exploration programs.

2. A Domestic Source of Nickel for an Electric Energy Expansion: The Nikolai project offers the potential to become a significant, secure, domestic source of nickel, aligning with the increasing demand for nickel in an electric energy transition.

3. Drilling Confirmed a Large Accumulation of Nickel: Recently completed (2023) and historical drilling results have confirmed the presence of a substantial Mineral Resource Estimate containing nickel, copper, cobalt, platinum, palladium, and gold.

4. Near-Term Drilling And Resource Calculation Catalysts: Planned 2024 program has potential to expand the Eureka deposit and increase the grade. There is potential for an exploration discovery of Ni-Cu-PGE massive sulfides at the Canwell Prospect.

5. Strong Financial Backing: Working with Commodity Partners of Vancouver, Canada, the company has secured quality financial backers, ensuring a well-capitalized position. A robust marketing presence will be utilized to increase awareness of the company and its project among investors.

6. Favorable Jurisdiction and Infrastructure: Operating in Alaska (a tier-1, pro-resource jurisdiction) provides a favorable regulatory environment and stability for mining operations. The project benefits from a favorable infrastructure setup, paved highways traversing the project area, gravel road access, and proximity to main rail and grid power systems.