Sometimes companies are presented here that I find exciting, even if I have never heard of them before. Today I would like to introduce you to a company that I invested in last Friday after reading an interesting stock report on the subject of commodities. The company in question is $PMET (+0,24 %) .
Why did I buy and will I top up before the 4th quarter?
Info: the article is not the stock report I read, which also dealt with other commodity stocks. However, as I had to pay for it, I can't attach it here.
Lithium just the start: tantalum & cesium about to boom - is the ultimate short crash looming for the share?
Today - 14:00 - Golo Thomas Kirchhoff
Photo: Midjourney/Werbefritz_KI
PATRIOT BATTERY METALS INC. REGISTERED SHARES O.N.1,56 +0,97 %
What a ride! Patriot Battery Metals (PMET) shares have been shooting through the roof for days - and it could be just the beginning. Out of nowhere, the share price is jumping up as if someone had attached a high-voltage power line to the order book. And behind this sudden price firework is nothing less than a strategic coup by Volkswagen and its battery forge Powerco, which was forged last year.
The little-known super raw materials: tantalum and caesium
What a story. While half of Europe is only talking about lithium, a treasure is growing at Patriot Battery Metals (PMET), a treasure is growing up that could blow up the dimensions of the raw materials world. Tantalum and caesium are the real stars in this story. Two metals that were previously only known to industry insiders - and are now suddenly at the center of a partnership between Volkswagen and PMET. The Canadians are sitting on deposits that are among the most important in the world. And they could soon completely reshuffle the cards in the global high-tech industry.
In the shadow of the lithium hype
Let's be clear: lithium is sexy because it fits into every headline. But tantalum and cesium? These are the really hot commodities that no one has on their radar - except investors who are looking far into the future.
Tantalum: the silent hero of microelectronics
Tantalum is a so-called strategic metal. It is extremely heat-resistant, corrosion-resistant and indispensable for the production of capacitors. These tiny components are used in smartphones, laptops, electric cars, defense electronics, aircraft and even in medical technology such as pacemakers. Global tantalum production is manageable - only around 2,000 tons are mined each year. Prices fluctuate greatly, but experts estimate the market volume at several billion dollars.
According to the latest estimate, PMET is sitting on 23,100 tons of tantalum - that corresponds to around 51 million pounds of the mineral. The current market value: an incredible 27 billion dollars. This makes the Quebec deposit one of the five largest tantalum deposits in the world, both in terms of quantity and content.
This means that PMET could become one of the most powerful tantalum centers in the world.
Caesium: the material for atomic clocks and oil drills
Caesium is even rarer. This metal is so rare that it is considered a "strategic super-element". What is it used for? In atomic clocks, for example, which precisely control global timekeeping. Or in the oil and gas industry, where caesium formate drilling fluids help to make drilling safer and more efficient. Caesium is also used in specialty glass, electronics, medical devices and even space technologies.
And here's the kicker: PMET recently discovered high-grade cesium deposits in the Vega zone of its Corvette project in Quebec. The deposit has not yet been fully evaluated. But insiders are certain: this could be one of the biggest cesium discoveries in recent years.
Ken Brinsden, CEO of PMET, is already planning his own resource estimate for the cesium deposit. If this turns out to be as gigantic as for lithium, Patriot Battery Metals could suddenly emerge as a global cesium supplier - in a market that is even narrower than that for tantalum.
VW deal: more than just lithium
And now comes Volkswagen comes into play. The car giant and its battery division Powerco have invested 48 million dollars in PMET. Officially, this was to secure lithium for cell production in Canada and Europe. But if you read the documents carefully, you quickly realize that VW is interested in more.
The contract explicitly states that Powerco and PMET also want to examine strategic potential that goes beyond lithium. This means that VW could not only purchase lithium from PMET in the future, but also cesium and tantalum. Why?
Electronics are becoming increasingly important for VW. Modern vehicles need countless electronic components, sensors and capacitors. No safe electric cars without tantalum.
Caesium can play a role in battery technologies, for example in special coatings or in high-precision control systems for manufacturing processes.
Both metals are extremely sensitive in geopolitical terms. Currently, a large proportion of tantalum production comes from conflict regions in Africa. VW wants to become more independent here.
Hedge fund short - the perfect explosive
While all this is happening in the background, PMET shares have suffered in recent months. The reason: short sellers have bet massively on falling prices. Hedge funds are betting that the price of lithium will continue to plummet. But they are ignoring the gigantic values that PMET has lying dormant in the ground.
This harbors massive risk. Should VW actually start to secure tantalum and cesium at PMET, the short sellers could be forced to cover their positions in panic. This would be the stuff of a classic short squeeze - and could cause the share price to explode.
After all, PMET's current stock market valuation is in the low three-digit million range. In view of the billions in tantalum resources and the opportunity to become the top western supplier of cesium, this is almost grotesquely low.
Feasibility study will be a game changer
Things will get exciting in the third quarter of 2025 at the latest, when PMET publishes its feasibility study for the CV5 deposit. And CEO Ken Brinsden has already announced that the company intends to deliver its own resource estimate for the cesium by early 2026 at the latest.
If the deposits are confirmed, PMET will no longer just be seen as a lithium play, but as a strategic raw material supplier for the entire high-tech industry.
Volkswagen wants to become more independent
VW no longer wants to be dependent on China. With Powerco in Canada, the Group is building the largest cell factory in North America. The deal with PMET fits perfectly into this strategy. Vertical integration is the magic word: from lithium mining to the finished battery - everything under our own control.
In addition, PMET and VW are committed to complying with the highest ESG standards: Water management, CO₂ reduction, cooperation with First Nations. This is also increasingly becoming a must for major customers.
A huge opportunity lurks here
While everyone is only talking about lithium, PMET is growing a treasure that could be much bigger: Tantalum and caesium. These metals are rare, expensive and in high demand - and PMET could soon become one of the largest suppliers outside China. Add to this the VW deal, the huge short interest and a feasibility study coming soon. This is the stuff that legends are made of on the stock market.
Patriot Battery Metals could develop into a commodities giant in the next few years. If you are brave, you should take a very close look at this stock. There is potential here for a story that could become even bigger.
Today, Börse Online also took up the topic.
