Critical minerals expert M2i Global Inc (OTCMKTS: MTWO) and aviation operator Volato Group Inc (NYSEAMERICAN: SOAR) (OTCMKTS: SOARW) are leading a strategic minerals stockpiling initiative in partnership with the United States Army. M2i and Volato are in the midst of finalizing a merger at the moment.
Announced on Thursday, the public-private initiative will focus on storing, refining and distributing critical minerals from the world’s largest ammunition depot in Hawthorne, Nevada. Gallium, graphite and copper were three mentioned in news releases from the companies, but the site will be housing others. Antimony, tungsten and lithium are a few more that have been drawing increasing attention from investors and American government agencies.
Benefits from the Strategic Minerals Reserve (SMR) will include improved domestic refining and recycling capacity enabling a reduction of foreign reliance. Additionally, job creation for state residents through partnerships with local institutions and organizations. The endeavour also aims to develop AI forecasting tools used to predict future material needs while optimizing inventory.
Furthermore, ethical sourcing, traceability and logistic efficiency in the supply chain will be key priorities.
“Nevada is once again at the centre of U.S. efforts for critical minerals independence,” commented Matt Healy, CEO of Astute Metals NL (ASX: ASE), in a social media post regarding the development. “Yet one more reason why Nevada is the jurisdiction of choice in the business of critical minerals.”
The U.S. Department of Defense, Department of Energy and Defense Logistics Agency will be supporting the undertaking. The DoD and DLA also announced plans to begin stockpiling cobalt for the first time in decades this week. The aim is to procure about 7,500 tons and spend up to US$500 million on the critical commodity.
While the SMR initiative is ambitious, the lack of details provided in the announcements raises questions about execution timelines and funding requirements. Few specifics about the role the companies will play were given.
M2i is known to focus on obtaining underutilized mine sites, reprocessing tailings and revitalizing abandoned mines in the U.S. to increase nationwide mineral production. It can also be inferred that Volato will complement M2i by providing financial exposure through its NYSE American listing and logistical support.
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Inspiration largely attributable to U.S. think tank
The news follows a report from a public policy researcher advocating for the establishment of an American critical minerals stockpile.
The United States is currently reliant on global supply chains for critical minerals that are of vital importance for the nation’s defense technologies, energy, electronics equipment and other infrastructure. The Hoover Institution highlighted this problematic issue and its thoughts on how to combat it in the informative document published on Aug. 11.
“Coercive foreign market behavior, including export controls and price manipulation, threatens the stability of these supply chains critical to the economic and commercial strength of the United States,” the think tank stated.
“It is my policy to ensure resilient and diversified access to critical minerals through the creation of a public-private, multilateral commercial stockpile.”
Read more: NevGold’s latest Nevada drill results show exceptional gold mineralization
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