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Big Idea:

The demand for uranium is surging, with prices soaring to triple digits for the first time since 2007, as countries transition from fossil fuels to alternative energy such as nuclear power. The imbalance is creating a supply deficit for uranium.

Why It Matters:

The market is driven by green energy policies from governments and also a need for more secure and secure energy sources than wind and solar energy. Geopolitical factors such as the war in Ukraine are further spurring this shift.

Key Details:

• The uranium spot price is expected to rise from $79/lb to over $100/lb within a year.
• Rising uranium prices are boosting uranium stocks and spurring the reopening and expansion of mines worldwide, especially in Canada and Australia.

“Our goal is to have as large a vehicle as possible, as liquid as possible so that more and more investors can participate in the sector,” said John Ciampaglia, CEO of Sprott Asset Management. “Most of the world is pivoting back to nuclear energy after largely ignoring it for 10 years.”

What's Next:

The future looks set for a sustained bull market in uranium. With rising demand and constrained supply, the sector is poised for growth and in uranium miners and developers as well as investments in new and existing nuclear power plants.

Dive Deeper:

Canada's Athabasca Basin, spanning roughly 100,000 square kilometers in Northern Saskatchewan and Alberta, hosts the world's richest uranium deposits, with grades 20 times higher than the global average. This region propelled Canada to become the world’s largest uranium producer, until Kazakhstan surpassed it in 2009. Currently, Kazakhstan produces 43% of the world's uranium.

By the Numbers:

• 50% increase in uranium prices this year.
• 145 million lb. projected global yellowcake supply.
• 180 million lb. current annual demand, set to nearly double by 2040.
• 60+ nuclear plants currently under construction worldwide.

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Big Idea:

Redwood Materials will supply Toyota with recycled cathode material and anode copper foil for battery cells. They will be produced in Toyota’s future $13.9 billion EV Battery factory in North Carolina scheduled for production in 2025.

Why It Matters:

This strategic partnership is important because now Toyota will have a US source for critical components for their EV batteries. This is also an extension of Redwood Materials agreement with the automaker in June 2022. Redwood, founded by former Tesla CTO JB Straubel, committed to the refurbishment or recycling of batteries from Toyota's hybrid and electric vehicles. In cases where batteries cannot undergo refurbishment, Redwood extracts essential materials like copper, lithium, cobalt, and nickel. These materials are then reprocessed into components, which are subsequently supplied back to Toyota for cell manufacturing.

Key Details:

• Toyota was long perceived as slow in fully embracing battery EVs in their lineup. Despite recent acceleration in their EV program, they stand by their strategy to manufacture and market a combination of hybrid, plug-in hybrid, and battery EVs.
• The North Carolina Battery Plant has six production lines and will wean Toyota off their dependence on overseas supply chains.
• Redwood’s recycling technology turns battery waste into reusable components.
• Redwood is set to supply Toyota with at least 20% recycled nickel and lithium, 50% recycled cobalt, and 100% recycled copper for battery cell production.

“Accelerating our recycling efforts and domestic component procurement gets us closer to our ultimate goal of creating a closed-loop battery ecosystem that will become increasingly important as we add more vehicles with batteries to roads across North America,” said Christopher Yang, Group Vice President, Business Development, Toyota Motor North America.

What's Next:

Toyota’s ramped-up investment and Redwood partnership could inspire more battery recycling startups to partner with EV makers, encouraging a sustainable and cyclical life for used batteries. 

Dive Deeper:

Redwood's expansion in Nevada and South Carolina signifies an increased capacity for upcycling battery material production, aiming to meet the demands of a million EVs annually by 2025.

By the Numbers

• Nearly five million Toyota electrified vehicles in operation that can be potentially recycled.
• 100 GWh annual production target by Redwood, sufficient for 1 million EVs.
• 5,000+ jobs to be created at the North Carolina plant.

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Big Idea:

Hong Kong's Insilico Medicine teams up with New Zealand's SRW Laboratories to develop AI-driven longevity nutraceuticals, leveraging Insilico's Pharma.AI platform to expedite the discovery of natural compounds that extend healthspan.

Why It Matters:

Aging populations are on the rise, set to reach 2.1 billion by 2050, with a threefold increase in those aged 80 or older. Insilico and SRW's collaboration uses AI tech to address age-related health issues with a focus on natural wellness to sustain a longer, better quality of life.

Key Details:

• Insilico's AI platform has the capability for rapid screening of natural compounds, aiming to extend healthspan and combat aging.
• Potential reduction in healthcare costs and improvement in quality of life for the aging population.

“We’ve been utilising our technology to increase output in the pharmaceutical space for years, but this is the first time we’re turning our attention to the natural supplement sector. We’re excited to help SRW make huge strides in analysing which compounds are the most effective and bring them to market. Extending the number of healthy years in a person’s life is a very motivating mission,” said Alex Zhavoronkov, PhD, co-CEO and founder of Insilico.

What's Next:

The partnership anticipates unveiling its first AI-assisted product suite in 2024.

Dive Deeper:

By merging biotech, AI and natural sciences together, this method aims to target cellular aging rather than treating symptoms. The integration of AI into nutraceuticals reflects a holistic health approach.

By the Numbers:

• By 2050, 2 billion people will be over 60, intensifying the need for effective longevity solutions.
• 37 trillion dollars is the estimated global gain per added year of lifespan from slowing aging
• $400 million dollars in funding and multiple pharmaceutical partnerships have been secured by Insilico.

Yes, but:

While the promise of AI in drug discovery is immense, there remains a cautious outlook due to previous setbacks in AI-generated drugs, highlighting the need for successful clinical outcomes to fully validate this approach.

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