Many governments around the globe are committing to a future populated by electric vehicles. In fact, a record 86,032 electric vehicles were registered in Canada in 2021, making up 5.3% of total vehicle registrations for that year. Battery electric vehicles (BEVs) make up roughly 75% of new electric vehicle registrations, with the rest going to plug-in hybrid electric vehicles. Every year, more electric vehicle models reach the mass market and they’re becoming more competitive in markets previously dominated by internal combustion engine (ICE) vehicles. EV battery production depends on five critical minerals; lithium, cobalt, manganese, nickel and graphite. The supply of these elements needs to scale up to meet the needs of the EV auto industry. A sustainable mining industry is essential to Canada’s carbon-free energy future and the production of electric vehicles. Capturing that opportunity will require targeted investment, strategic public and private partnerships, and implementing innovative and sustainable business processes and principles. This is where junior mining companies shine.
What is a junior mining company?
A junior mining company is a small, early-stage mining company in search of new deposits of precious metals and/or minerals. They provide the groundwork for the future supply and demand of attractive exploration projects and heavily contribute to the exploration and development of the mining industry. They have a crucial role to play in meeting the electric vehicle production upswing by finding and developing deposits of lithium, cobalt, manganese, nickel and graphite.
Future trends for the junior mining industry:
Junior mining companies will:
- Ramp up production targets
- Invest in diversified sources
- Accelerate the exploration and mining of critical minerals in Canada, including addressing our lack of active lithium mining operations
- Leverage government programs to train and hire a skilled end-to-end workforce
- Build out a strong domestic exploration-to-electrification value chain
- Develop domestic infrastructure to support operations
- Invest in R&D to drive sustainable end-to-end value chain innovation
- Incentivize extended producer responsibility across value and supply chains
- Redefine end-of-life across the value chain using circular economy business models and principles
- Think beyond extraction
- Prioritize the conservation of biodiversity
- Prioritize economic reconciliation with Indigenous communities
- Develop a long-term strategy for reusing, repurposing and recycling minerals
The need to quicken the energy transition and secure critical minerals supply has increased in pace and comes on the heels of a decade of chronic underinvestment in junior mining companies. The junior mining and exploration sector has experienced a large upswing since the COVID-crisis lows. Most of the key drivers of the resurgence in the junior mining sector will be with us for some time. As a result, the future looks bright for junior mining companies.
Interested in junior mining activities and investment opportunities? Check out Junior Mining Hub. We’re a rapidly growing, open-access platform highlighting industry events and activities throughout the junior mining sector. Our categorized, searchable information provides a cohesive industry picture. We use our years of industry experience to promote mining activities and investment opportunities to the global community. Contact us today or sign up for our daily email and/or our weekly newsletter.