Global Energy Metals forms US subsidiary to capitalize on rising interest in the electric vehicle supply chain

Global Energy Metals Corporation (CVE:GEMC) (OTCMKTS:GBLEF) has formed a new US subsidiary to capitalize on rising national interest in the battery minerals sector, it said Monday.

The new subsidiary, US Battery Metals Corporation, will allow the Vancouver-based company to establish a presence south of the border at a time when the electric vehicle sector is at the forefront of political conversations, the company told investors.

Its first holdings will include the recent acquisition of an 85% stake in the Lovelock and Treasure Box battery metals projects in Nevada, close to Tesla’s Gigafactory to manufacture lithium-ion batteries for its cars.

READ: Global Energy Metals closes oversubscribed second tranche of placing, which is set to fund Nevada battery mineral projects acquisition

“The addition of these highly prospective nickel, cobalt and copper properties, each being well positioned for further exploration and development, comes at a time when the battery minerals sector is realigning with price fundamentals as a surge in demand and market growth is supported by a global acceleration of EV production,” Global Energy Metals said in a statement Monday.

“A movement that is demanding that the value chain be made as simple as possible and that electromobility and other sustainable-energy initiatives require supply chain disruption and localization.”

US Battery Metals Corporation will play an “important role” in Global Energy Metals’ wider objective to provide exposure to e-mobility and the transition to clean energy, energy storage initiative and infrastructure investment in the country, according to the company.

Bloomberg New Energy Finance estimates that by 2040, the global stock of electric vehicles will reach 500 million, with automakers investing US$300 billion over the next five to 10 years on EV development and production.

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