Galan Lithium (GLN:AU) has announced HMW Phase 1 Funding & Offtake Secured with US Based Partner
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Lode Gold Resources Inc. (TSXV: LOD) (OTCQB: LODFF) (‘Lode Gold’ or the ‘Company’) is pleased to announce that it has closed on its first tranche of its non-brokered private placement offering. The Company has raised $790,186 through the issuance of 4,389,922 Units at a price of $0.18 per Unit. The cash raised will be used for the execution of the 2025 business plan and general working capital. In Yukon, the Company will conduct field work, including geological mapping, soil sampling, and channel sampling to advance drill target development. In California, the funds will support the completion of a 2025 Preliminary Economic Assessment( PEA) focused on bulk mining, underground channel sampling to upgrade resources, and moving towards the pre-feasibility study (PFS) at the Fremont project.
Each $0.18 Unit shall consist of one common share and one common share purchase warrant. Each warrant shall entitle the holder to purchase one common share at an exercise price of $0.35 per common share for a period of three years following the date of closing. The Company may accelerate the expiry date if the shares trade at $0.65 or more for a period of 10 days, including days where no trading occurs.
Lode Gold is extending the closing date of its private placement to April 30, 2025, for the second tranche. The Company may sell additional Units in the offering in one or more subsequent closings, on or before this date. Closing of the offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including acceptance by the TSX-V.
The Units were offered by way of private placement pursuant to exemptions from prospectus requirements and in accordance with National Instrument 45-106, Prospectus Exemptions. All securities issued in this closing are subject to a four month hold period, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.
About Lode Gold
Lode Gold (TSXV: LOD) is an exploration and development company with projects in highly prospective and safe mining jurisdictions in Canada and the United States. In Canada, its Golden Culvert and WIN Projects in Yukon, covering 99.5 km2 across a 27-km strike length, are situated in a district-scale, high grade gold mineralized trend within the southern portion of the Tombstone Gold Belt. A total of four RIRGS targets have been confirmed on the property. A NI 43-101 technical report has been completed in May 2024.
In New Brunswick, Lode Gold has created one of the largest land packages with its Acadian Gold JV Co; consisting of an area that spans 445 km2 and a 44 km strike. McIntyre Brook covers 111 km2 and a 17-km strike in the emerging Appalachian/Iapetus Gold Belt; it is hosted by orogenic rocks of similar age and structure as New Found Gold’s Queensway Project. Riley Brook is a 335 km2 package covering a 26 km strike of Wapske formation with its numerous felsic units. A NI 43-101 technical report has been completed in August 2024.
In the United States, the Company is advancing its Fremont Gold project. This is a brownfield project with over 43,000 m drilled and 23 km of underground workings. It was previously mined at 10.7 g/t Au in the 1930’s. Mining was halted in 1942 due the gold mining prohibition in World War Two (WWII) just as it was ramping up production. Unlike typical brownfield projects that are mined out; only 8% of the veins have been exploited. The Company is the first owner to investigate an underground high grade mine potential at Fremont. The project is located on 3,351 acres of private and patented land in Mariposa County. The asset is a 4 km strike on the prolific 190 km Mother Lode Gold Belt, California that produced over 50,000,000 oz of gold and is instrumental in creating the towns, businesses and infrastructure in the 1800s gold rush. It is 1.5 hours from Fresno, California. The property has year-round road access and is close to airports and rail. An NI 43-101 MRE has been reported on March 5, 2025. A complete technical report will be filed 45 days later on SEDAR+.
Previously, in March 2023, the company completed an NI 43-101 Preliminary Economic Assessment (‘PEA’) for the Fremont Gold project. A sensitivity to the March 31, 2023 PEA at USD $2,000/oz gold gives an after-tax NPV of USD $370M and a 31% IRR over an 11-year LOM. At $1,750 /oz gold, NPV (5%) is $217M. The project hosts an NI 43-101 resource of 1.16 Moz at 1.90 g/t Au within 19.0 MT Indicated and 2.02 Moz at 2.22 g/t Au within 28.3 MT Inferred. The MRE evaluates only 1.4 km of the 4 km strike of Fremont property. Three step-out holes at depth (up to 1200 m) hit structure and were mineralized. All NI 43-101 technical reports are available on the Company’s profile on SEDAR+ (www.sedarplus.ca) and the Company’s website (www.lode-gold.com)
ON BEHALF OF THE COMPANY
Wendy T. Chan
CEO & Director
Information Contact
Winfield Ding
CFO
info@lode-gold.com
+1-(604)-977-GOLD (4653)
Kevin Shum
Investor Relations
kevin@lode-gold.com
+1 (604) -977-GOLD (4653)
Cautionary Note Related to this News Release and Figures
This news release contains information about adjacent properties on which the Company has no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company’s properties.
Cautionary Statement Regarding Forward-Looking Information
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes ‘forward-looking statements’ and ‘forward-looking information’ within the meaning of Canadian securities legislation. All statements included in this news release, other than statements of historical fact, are forward-looking statements including, without limitation, statements with respect to the completion of the transaction and the timing thereof, the expected benefits of the transaction to shareholders of the Company, the structure, terms and conditions of the transaction and the execution of a definitive agreement, the timing of submission to the CSE and TSXV, Gold Orogen raising an additional $1,500,000 and the anticipated use of proceeds. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as ‘anticipate’, ‘believe’, ‘plan’, ‘estimate’, ‘expect’, ‘potential’, ‘target’, ‘budget’ and ‘intend’ and statements that an event or result ‘may’, ‘will’, ‘should’, ‘could’ or ‘might’ occur or be achieved and other similar expressions and includes the negatives thereof.
Forward-looking statements are based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which the Company operates, are inherently subject to significant operational, economic, and competitive uncertainties, risks and contingencies. These include assumptions regarding, among other things: that the Company and GRM will be able to negotiate the definitive agreement on the terms and within the time frame expected, that the Company and GRM will be able to make submissions to the CSE and TSXV within the time frame expected, that the Company and GRM will be able to obtain shareholder approval for the transaction, that the Company and GRM will be able to obtain necessary third party and regulatory approvals required for the transaction, if completed, that the transaction will provide the expected benefits to the Company and its shareholders.
There can be no assurance that forward-looking statements will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include adverse market conditions, general economic, market or business risks, unanticipated costs, the failure of the Company and GRM to negotiate the definitive agreement on the terms and conditions and within the timeframe expected, the failure of the Company and GRM to make submissions to the CSE and TSXV within the timeframe expected, the failure of the Company and GRM to obtain shareholder approval for the transaction, the failure of the Company and GRM to obtain all necessary approvals for the transaction, and r other risks detailed from time to time in the filings made by the Company with securities regulators, including those described under the heading ‘Risks and Uncertainties’ in the Company’s most recently filed MD&A. The Company does not undertake to update or revise any forward-looking statements, except in accordance with applicable law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/248662
News Provided by Newsfile via QuoteMedia
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Ole Hansen, head of commodity strategy at Saxo Bank, shares his outlook for the gold, silver, copper and oil sectors as tariff uncertainty continues.
‘If you’re actively trading these markets, keep your position to a level that reflects the new and higher volatility,’ he said, urging investors to be mindful amid the current turmoil.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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This week has brought ups and downs for the gold price as US President Donald Trump’s tariff decisions continue to create widespread uncertainty across sectors globally.
The yellow metal started the week at about US$3,020 per ounce, but quickly tumbled below the US$3,000 level as markets around the world took a beating.
Although gold is known as a safe haven, it’s common for it to fall in tandem with other assets during widespread downturns. The idea is that gold won’t drop as hard and will recover more quickly.
Speaking just after gold’s fall, Gary Wagner of TheGoldForecast.com explained that its decline shouldn’t be concerning for investors. Here’s how he explained it:
‘One thing that is clear is that when equities came under fire … liquidation happened across the board in multiple asset groups and classes. Gold was kind of a witness to that, and the massive liquidation that occurred was either to liquidate profitable positions to cover margin calls, or just to get more into cash than they had been in terms of the position of the portfolio. So to me it’s not that unexpected, and the amount of the decline is actually fairly calm considering how much it’s gone up.’
Wagner’s advice not to worry about gold’s pullback was prescient — the precious metal was back on the move by Wednesday (April 9), and on Thursday (April 10) it notched yet another fresh all-time high.
It continued moving upward on Friday (April 11), breaking US$3,200 and setting another price record.
Gold’s midweek rebound came after Trump’s turnaround on tariffs — in a surprise move on Wednesday, he announced a 90 day pause on ‘reciprocal’ tariffs for most countries.
China is an exception — Trump said he would be boosting China’s rate to 125 percent after the Asian nation announced further retaliatory tariffs against the US. It’s since been clarified that tariffs on China stand at 145 percent; on Friday, China said it would raise its tariffs on the US to 125 percent.
Canada and Mexico are also exceptions. Most goods from these countries are already subject to 25 percent tariffs, and these will remain in place. Blanket 25 percent tariffs on cars and car parts, as well as steel and aluminum, have also not been affected at this point.
The reversal from Trump came not long after he encouraged his followers on Truth Social to ‘be cool’ and told them it was ‘a great time to buy.’ It also reportedly came after White House officials put increasing pressure on Trump to change course. Worries about a selloff in US government bonds raised alarm bells, with Treasury Secretary Scott Bessent taking these concerns to Trump.
‘The bond market is very tricky, I was watching it. The bond market right now is beautiful. But yeah, I saw last night where people were getting a little queasy’ — Trump
Major US indexes rebounded strongly once Trump announced his decision, and although they had given up some gains by the end of the week, they still finished the period in the green.
In terms of where that leaves gold, many experts with agree its prospects still look bright even as it trades at all-time highs. Here’s what Will Rhind of GraniteShares said:
‘If you look at something called the M2 ratio, which is the money supply divided by the price of gold, that is a particularly scary chart. Obviously if history is any guide, then when the ratio is high, that typically means that gold is overvalued, and when the ratio is low, that typically means that gold is undervalued.
‘If you look at it right now, we’re somewhat I would say below the median. In other words, we’re closer to gold being undervalued rather than overvalued at a time when we just talked about gold hitting a new all-time high.’
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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The copper price began 2025 on a rebound, spending time above US$5 per pound during Q1 after trading within the US$4 to US$4.50 per pound range for most of 2024’s second half.
Starting strong, the red metal climbed from US$3.99 on January 2 to reach US$4.40 by mid-month.
It then eased slightly, ending January at US$4.25. February once again brought momentum as copper climbed steadily to US$4.76 on February 13. However, the price retreated and ended the month at US$4.53.
Copper price, January 2 to April 9, 2025.
Chart via Trading Economics.
The copper price saw significant gains throughout March, breaking through the US$5 mark on March 19. It set a new all-time high of US$5.22 on March 26 before falling to US$5.04 on March 31.
Since then, copper has been under pressure, and the price of the metal plunged to US$4.26 on April 7.
Copper market facing tariff uncertainty
The first quarter of the year was dynamic for copper, but few factors have influenced the market for the base metal more than the threat of tariffs from the US. This possibility has created a wider price gap between London Metal Exchange (LME) copper and Chicago Mercantile Exchange (CME) copper.
According to an ING article published in mid-February, the CME price was more than 10 percent higher than the LME price at the time, prompting traders to begin shifting copper inventories from overseas warehouses into the US.
This movement elevated stockpiles at CME warehouses to over 100,000 metric tons, the highest level since they peaked at 250,000 metric tons during Donald Trump’s first presidency.
Overall, the US relies on copper imports, which account for 45 percent of its domestic consumption. Chile constitutes 35 percent of incoming supply, while Canada contributes 26 percent.
The majority of copper inflows are in the form of refined copper products, which make up 60 percent of US imports.
On February 25, Trump signed an executive order invoking Section 232 of the Trade Expansion Act to initiate an investigation into the impact of copper imports on all forms on national security.
In the order, Trump noted that while the US has ample copper reserves, its smelting and refining capacity has declined. China has become the world’s leading supplier of refined copper, commanding a 50 percent market share.
During a mid-March CRU Group webinar focused on copper, Erik Heimlich, head of base metals at the firm, discussed why Trump may have announced the start of the investigation.
“Their reliance on imports has been growing systematically, and with the closure not so long ago of the Hayden smelter and the Amarillo refinery, that has increased even more,” he said.
Heimlich further explained that Trump may want to use copper tariffs to encourage a resurgence of copper processing in the US based on national security concerns. This point was reiterated by Bryan Billie, policy and geopolitical principal at Benchmark Mineral Intelligence, during a virtual panel held at the beginning of April.
“The big question here is whether US dependencies on copper imports are supposedly compromising national security. That’s the legal rationale behind the investigation,” Billie said.
He also discussed the timeline, noting that Section 232 investigations typically take 270 days to complete, although they can be shorter. While it remains uncertain whether the investigation will lead to tariffs, it could also result in export controls, which might pose additional challenges in global copper markets.
Michael Finch, Benchmark’s head of strategic initiatives, suggested that the review is likely to take weeks rather than months, and could actually bring some relief to the market.
“I think, given that the market now expects the announcement on Section 232 to arrive a bit sooner than previously anticipated, I don’t believe as much copper will be trapped in the US as we progress through the coming quarters … I think it’s part of that trend that we’re witnessing a softening in the copper price,” he said.
Supply chain disruptions and copper fundamentals
Other factors that have affected the copper price include a major power outage in Chile at the end of February.
Chile declared a state of emergency to address the outage, which left more than 8 million homes and a significant portion of the country’s mining operations without power.
The outage resulted from a transmission line failure in the northern part of the country, causing BHP (NYSE:BHP,ASX:BHP,LSE:BHP) to shut down operations at Escondida, the world’s largest copper mine.
Although power was restored in a few days, COMEX copper futures for March rose by 0.9 percent.
An additional supply disruption occurred in March, when Glencore (LSE:GLEN,OTC Pink:GLCNF) declared force majeure and halted copper shipments from its Altonorte operation in Chile. The refinery produces 350,000 metric tons of copper anode annually, and a prolonged shutdown could impact an already tight copper market.
On a fundamental level, the International Copper Study Group provided preliminary data for January’s supply and demand conditions on March 21. In its release, the group outlines an apparent deficit of 19,000 metric tons of refined copper in the first month of the year, down from the 24,000 metric ton deficit reported in January 2024.
Supply and demand for refined copper maintained a balance at the start of the year, with each growing by 1 percent. Supply-side growth was largely constrained by a 14 percent drop in Chilean output.
Mine production experienced a 2 percent increase in January, with 7 percent year-on-year growth from Peru. The ramp up of production at Anglo American’s (LSE: AAL,OTCQX:AAUFK) Quellaveco mine was a key factor.
Additionally, supply increased by 6 percent in the Democratic Republic of Congo due to the expansion of Ivanhoe Mines’ (TSX:IVN,OTCQX:IVPAF) Kamoa-Kakula mine. A 3 percent increase in Asian production was offset by a 2 percent decline in North America. Chile also saw a fall of 2.7 percent compared to the same period last year.
Copper price outlook for 2025
Copper is tied closely to the global economy, making this a key factor to watch.
“CRU economists continue to expect global GDP to grow by 2.6 percent in 2025, and refined copper demand to grow by around 2.9 percent in both this and next year, which is actually an increase compared to our previous forecast. So despite the dramatic macro and geopolitical events that we have witnessed over the last few months, the base-case demand narrative for copper remains robust,” Heimlich said in mid-March.
However, he also noted that this base-case scenario is surrounded by uncertainty.
That uncertainty has come to the forefront at the start of Q2. Copper prices fell nearly 20 percent at the beginning of April as the Trump administration announced a new round of base-level and reciprocal tariffs.
Investors experienced a significant selloff as the prospect of a recession became more pronounced.
A recession would substantially impact base metals, including copper, as consumers turn away from big-ticket items like new homes and cars, which require large quantities of these materials
For investors, uncertainty will likely remain for some time. A Section 232 outcome could help stabilize copper, or it could escalate other aspects of a trade war between the US and the rest of the world.
It also remains unclear how long Trump’s tariffs will be in place.
This situation could provide opportunities for investors with an appetite for risk who are looking to make bets. Others may prefer to remain on the sidelines and wait for more clarity on the global trade front.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
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Shifting political winds and tech advancements defined the cleantech sector in the first quarter of 2025.
This cleantech market update will explore the key trends and challenges that shaped the sector in Q1, with a focus on electric vehicles (EVs), autonomous driving technologies and renewable energy.
From shifting regulatory landscapes to breakthroughs in battery innovation, the period was marked by rapid developments and growing global investment in clean technologies.
Political shifts and policy challenges in cleantech
A notable political shift away from climate-supportive policies in the early weeks of Q1 posed a challenge to the cleantech industry as the Trump administration initiated legal action to cancel key subsidies and funding programs.
Targeting the Biden-era Inflation Reduction Act (IRA) on his first day in office, US President Donald Trump signed the Unleashing American Energy executive order that, among other things, called for a freeze on fund disbursement pending review.
The Trump administration has since taken several additional steps to reshape the nation’s environmental and energy landscape, suspending the US$5 billion National Electric Vehicle Infrastructure (NEVI) program initially approved by Congress in 2021 and launching a deregulatory initiative through the EPA to boost the US energy sector.
Such actions have ignited a huge backlash from legal experts and climate activists. “On a bipartisan basis, Congress funded this program to build a new vehicle charging network nationwide. The Trump administration does not have the authority to halt it capriciously.” NRDC advocate Beth Hammon said in a statement reported by Axios after the Federal Highway Administration announced the suspension of the NEVI Formula Program.
Trump would also need Congressional approval to repeal tax credits; however, since many IRA-funded projects have generated jobs in red states, pursuing repeals could intensify the backlash the administration is already facing due to the tariff-induced trade war, which significantly impacted 401(k)s and pushed indices into a bear market at the beginning of Q2.
“Many of our plants in the Midwest that have converted to EVs depend on the production credit,” Ford (NASDAQ:F) CEO Jim Farley told reporters at the Detroit Auto Show in January.
“We would have built those factories in other places, but we didn’t … It changed the math for a lot of investments.”
As legal battles unfold in federal court, the delay has already reverberated throughout the sector, with cleantech companies delaying projects in anticipation of potential policy changes, according to Bob Keefe of E2. The outcome could have long-lasting effects on the overall growth and stability of the cleantech industry.
EVs and the autonomous revolution
Electrified transport has been a major sector driving global energy transition investment, accounting for US$757 billion in 2024, according to BloombergNEF’s Energy Transition Outlook for 2025.
The 2025 Consumer Electronics Show (CES) in January highlighted the convergence of EVs and autonomous driving, with Google’s (NASDAQ:GOOGL) EV subsidiary Waymo announcing an expansion of its partnership with Hyundai Motor (OTC Pink:HYEVF,KRX:005380) and a new collaboration to integrate the NVIDIA-powered EV Zeeker RT into its fleet.
NVIDIA (NASDAQ:NVDA) CEO Jensen Huang, who kicked off the event by delivering a keynote speech, touted the success of Waymo and Tesla (NASDAQ:TSLA) as a symbol of the “arrival” of autonomous vehicles.
Huang later disclosed during an interview with Yahoo Finance’s Dan Howley that NVIDIA’s technology for autonomous driving is projected to generate US$5 billion in annual sales.
Waymo has since announced plans to expand its self-driving testing to 10 more cities in the US this year and has expanded its services in the San Francisco Bay Area.
In March, the company teamed up with Uber (NYSE:UBER) to offer robotaxis in Austin, Texas — ahead of Tesla’s planned June launch — with plans to expand into Atlanta later this year.
Tesla
Tesla faced a period of mixed performance this quarter, its stock price experiencing a 2.9 percent drop after Bank of America Global Research changed its rating from “buy” to “neutral” in early January. Analysts cited high execution risks as near-term growth impediments, including the delayed launch of its robotaxi and low-cost models.
An NHTSA investigation into Tesla’s Smart Summon system initiated a further downturn in its stock price. This was compounded by a substantial drop in the week of January 20 amidst Trump’s declaration of an “energy emergency” and evolving policy conditions. Subsequently, a February 2025 report indicated a weakening brand value stemming from revenue shortfalls and heightened competition, particularly from China, where companies like BYD and Xiaomi have eaten into Tesla’s market share.
BYD (OTC Pink:BYDDY,SZSE:002594) surpassed Tesla’s revenue for Q4 2024, and analysts predict it will lead in global battery electric vehicle (BEV) market share for the full year.
The company also unveiled a new EV battery system and platform in March 2025 that boasts an ultra-fast charging capability, which will be featured in its new series launching in April.
Xiaomi (OTC Pink:XIACY,HKEX:1810), another significant Chinese player in the EV market, reported 365.9 billion Chinese yuan (US$50.6 billion) in annual revenue in its 2024 earnings report, with 10 percent from its new EV division.
Xiaomi also lifted its 2025 delivery target for EVs to 350,000, up from an earlier figure of 300,000, with plans to release an electric SUV this summer, pitting it against Tesla’s recently refreshed Model Y.
Tesla, which has plans to launch in Saudi Arabia on April 10, didn’t provide a vehicle delivery estimate in its Q4 report, saying only that it expected a “return to growth.’
Policy
Tesla CEO Elon Musk’s involvement in US politics has also weighed on the company.
Daniel Ives, a Wedbush Securities analyst who’s been bullish of Tesla stock for the last four years, reduced his Tesla share price target to US$315 from US$550. In a client report shared by Bloomberg on April 6, Ives cites a brand crisis created by Musk’s connection to Trump’s trade policies.
Protests erupted across the country and in Canada in reaction to Musk’s increasingly prominent role in the Trump administration, specifically his seemingly unrestricted access to sensitive government data and his efforts to shut down agencies and implement massive funding cuts.
Reports of vehicle and storefront vandalism surfaced as activists called for Tesla drivers to sell their vehicles and dump shares as a form of protest against Musk’s involvement. This sentiment resulted in substantial declines in Tesla’s share price on multiple occasions throughout March, the largest of which (15.43 percent) occurred on March 10 when President Trump confirmed his intention to move forward with tariffs on goods from Canada and Mexico.
Tariffs
Global tariffs announced on April 2 have added another layer to the challenges global trade poses to the cleantech sector, particularly for the auto industry. While the situation is unfolding and some political analysts are hopeful that negotiations will result in lower levies, many economists say high tariffs could devastate the sector.
CFRA Research analyst Garrett Nelson’s latest analysis describes how Tesla is the “least exposed” to automobile tariffs and could even stand to benefit. “There are very few winners,” Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions, said in a telephone interview with Bloomberg. “Consumers will be losers because they will have reduced choice and higher prices.”
Renewable energy: growth amidst policy uncertainty
Recent efforts to bolster the renewable energy sector have seen gradual success, as demonstrated by new data from the International Renewable Energy Agency showing that added renewable energy capacity accounted for more than 90 percent of total global power expansion last year.
Solar and wind energy grew at the highest rate, with the US adding a 54 percent increase in solar capacity.
BloombergNEF’s Trends report, released on January 30 with data likely compiled before the inauguration and subsequent policy changes, named solar and wind power as a “mature” part of the energy transition likely to continue to receive funding in 2025; however, under the Trump administration, the near-term future of both industries appears uncertain.
Energy research firm Wood Mackenzie’s David Brown told the Globe and Mail in January that despite the current strong growth in US solar capacity, the effects of policy uncertainty and incentive cuts might be more pronounced after the next 12 to 18 months.
Along with pausing IRA funding earmarked for climate programs, Trump ordered the suspension of wind and solar power projects. Wood McKenzie recently cut its five year outlook for new wind energy projects by 40 percent, citing economic concerns and the current administration’s policies as hurdles.
Yet, within this evolving landscape, Plug Power, a hydrogen manufacturer that secured a loan guarantee of almost US$1.7 billion to build hydrogen power plants before Biden left office, was able to navigate the existing incentive structures to claim tax benefits after this order took effect.
The company added US$30 million to its liquidity pool on January 24 through the transfer of the Federal Investment Tax Credit; however, a US$200 million funding gap prompted analysts at Seeking Alpha to name it a high-risk bet.
Cleantech outlook for 2025
Wood Mackenzie’s Energy Transition Outlook for 2024-25 suggests that power sector emission drops and electric vehicle adoption could reduce North America’s power sector emissions by 20 percent by 2030, although factors like tariffs and policy could impede this progress.
While bank financing for low-carbon energy technologies nearly matched that of fossil fuels in 2023, a potential funding threat has emerged as all major US banks have withdrawn from the Net Zero Banking Alliance. Additionally, BlackRock (NYSE:BLK) announced its decision to leave the Net-Zero Asset Managers initiative in January.
The current political and economic outlook presents a landscape rife with questions for the cleantech industry. A District Court judge in Rhode Island blocked the order to freeze IRA funding in late January, but comments from the administration suggest the battle is far from over.
Yet, progress continues on several fronts. A note by Citigroup ESG analysts asserts that the energy transition is further along now than during Trump’s first term, and his policies will not be able to hold back the progress that has already begun.
Companies are continuing to expand. Revel CEO Frank Reig told Axios there’s still plenty of financing support for EV charging from local governments and state utilities, despite the cutbacks in federal funding. The electric taxi company recently opened its first EV fast-charging station outside of New York City in San Francisco’s Mission District, with plans to add another 125 chargers at seven sites in the Bay Area within the year.
EV maker Rivian (NASDAQ:RIVN) is proceeding with its US$6.6 billion IRA-backed Georgia factory despite earlier state-level uncertainty. Rivian has also spun out a new micromobility startup, securing US$105 million in funding with investment from VC firm Eclipse. Researchers at BloombergNEF predict that by 2050, three out of four global sales of two- and three-wheelers will be electric vehicles, compared to approximately half in 2024.
Despite potential headwinds for renewables, Petar Pejovic, senior portfolio manager with Pejovic Bighill Private Wealth at Wellington-Altus Private Wealth, suggested that energy demands for AI infrastructure are likely to support a diverse energy mix, including green sources.
Nuclear energy is gaining traction as a sustainable option, with nuclear fusion and small modular reactors identified by Cleantech Group at its annual North American forum as high-growth areas.
Electric mobility and hydrogen could face slower growth due to manufacturing hurdles and demand issues, respectively. However, investment opportunities are anticipated in hydrogen for long-term decarbonization.
The intersection of AI and cleantech is strengthening, attracting increased investment. Furthermore, the cleantech and defense sectors are converging on dual-use technologies. The growing awareness of the health impacts of climate change is also expected to drive further attention and investment in cleantech solutions.
The coming months will be critical in determining the trajectory of the cleantech industry as it navigates policy shifts, market competition, and technological advancements.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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