China Is Opening The Largest Factory

In World History As Soon As June 21

Dajin Resources Corp. info@dajin.ca a través de sendgrid.me

June 22, 2018

Dear Shareholders and Interested Investors:

Please find below a condensed version of the highlights from an article published by Casey
Research announcing plans to open the world’s largest battery factory in China. This article
provides you with details as to the enormous potential and possible impact the Electric Vehicle
Revolution may have on the auto industry for years to come. For the full article click here.

Through this recent downturn in the metals market, Lithium has remained strong. Electric Vehicle
Revolution is just getting started and a major increase in the production of all lithium ion powered
vehicles is happening now.
Should you have any questions, feel free to call or email me.

Brian Findlay, President

DAJIN RESOURCES CORP.
Office: 604-681-6151
brian@dajin.ca www.dajin.ca

China’s Opening The Largest Factory In World History As Soon As June 21…
Casey Research, June 2018 By E.B. Tucker, Editor, Strategic Investor

When Tesla opened its $5 billion battery factory – called the “Gigafactory” – prices of one
critical metal spiked immediately. And companies who mine this metal saw their shares surge
as high as 4,066%.

As soon as June 21, China’s opening a battery factory 50 times larger than Tesla’s. How
much higher could it send the price of this metal – and shares of the companies that mine
them?

Everyone knows the term “lithium-ion” battery these days. From your electric toothbrush to power
tools, these batteries have changed what we can do without a cord.
Lithium is a key component of emerging battery technology. The smaller batteries we think of today
create demand for the powdery white metal. And surging demand for electric vehicle batteries is
about to send lithium demand soaring. Lithium exploration is heating up. It’s a race against time to
discover new sources and bring more lithium to market. But it wasn’t always that way. Right now,
there’s a major shift toward electric vehicles taking place within the auto industry.

The chart below shows estimated lithium battery demand out to 2025. Electric vehicle battery
demand creates the surge shown in blue.
Electric vehicles (EVs) need a lot of batteries to get you from point A to point B without a charge.

Those batteries contain a lot of lithium. In fact, lithium is the key ingredient. Without it, these
batteries wouldn’t be able to produce a charge.

Electric car maker Tesla may have kicked off this shift, but other manufacturers like GM, BMW, and
Nissan are taking charge.

And they have one thing in common: they need lithium.

In the coming years, EVs will drive battery demand. Today, we’re positioning to be ahead of the
crowd. Officials are about to cut the ribbon on the largest building in world history: China’s first
battery factory. Let me put into perspective how big a deal this is. You’ve probably heard of Tesla’s
self-proclaimed “Gigafactory.”
Tesla’s ambitious CEO, Elon Musk, spent $5 billion building the Gigafactory in the Nevada desert.
It’s as big as 104 football fields. And it produces 500,000 batteries a year, mostly for electric cars.
Well, China’s new factory is 50 TIMES bigger than Tesla’s Gigafactory.

Shortly after Tesla’s Gigafactory went online January 4, 2017… Prices of battery-grade metals
began rising: Lithium increased 29%. Nickel went up to $15,700 per ton -- a 57% increase. And
Cobalt soared to $81,500 per ton -- a 190% increase. At the same time, a few companies that mine
these metals saw their shares surge even higher. And all these gains literally began the exact same
day Tesla’s Gigafactory went online. So, imagine China’s battery factory -- which is 50 times
larger than Tesla’s, and can produce 25 million batteries a year, vs. Tesla’s 500,000…
There May Not Be Enough Of These Metals On The Planet To Supply China’s Huge Battery
Factory

To supply their battery factory, China needs… 8 million tons of lithium – 33x the world’s stockpile.
630,000 tons of cobalt – 1,073x the world’s stockpile. 964,000 tons of nickel --- 3.12x the world’s
stockpile. And it needs this enormous amount every single year. In order to meet this sudden surge
of demand, mining production... For lithium needs to increase 158x -- from 43,000 tons to 6.8 million.
For cobalt needs to increase 5.7x – from 110,000 tons to 630,000. For nickel needs to increase 4.2x
– from 210,000 tons to 875,000.

In other words, for the foreseeable future, there is simply not enough of these metals to supply
China’s battery factory – let alone China and Tesla at the same time.
China’s new battery factory is actually a series of different factories. And they won’t all come online
as soon as June 21. But the metal price spike coming in June could still be much larger than the
Tesla spike. Potentially 20-30 times bigger. Remember, all of these buildings combined are 50 times
bigger than Tesla’s Gigafactory. And after the first opens on June 21… The rest are set to go online
so quickly, the supply of battery-grade metals may not be able to meet demand. This means prices
of these metals are going to spike – fast. And they will keep rising for the foreseeable future, as
China continues to open its battery factories. Why is China opening these battery factories so fast?

China to Allow Only Electric Cars

You see, the Chinese government decided to ban gas and diesel-powered vehicles. That’s
according to Xin Goubin, China’s vice minister of industry. Which means the 28 million cars they sell
every year will eventually all be electric. When it’s all said and done, that's a 9,900% growth rate.
Essentially guaranteed by the Chinese government. Of course, to end up creating 28 million electric
cars a year, they also need 28 million batteries per year. Problem is, until recently, the world’s
maximum "battery-making" capacity was only 1.7 million. That's including Tesla's famous
"Gigafactory," and factories that create batteries for other electronics, like phones. Assuming China
could somehow buy all the batteries in the world, they still wouldn't have enough. They'd need 16
times more. Each year. That’s why they decided to build their own. And because they don’t have
democratic processes that limit construction, the Chinese government is able to act quickly to reach
its goals. To hit their production targets in time, they have to open their battery factories at an
incredibly fast pace. So fast, in fact, that supply of battery-grade metals could hit critical lows. USA
Today says, “indications that a shortage may be looming are very real.” Consulting firm Macquarie
Research,a favorite of some of the world’s largest miners, says, “demand is expected to
systematically outstrip supply…” And Reuters reports, after this building opens, the incoming “supply
shortage will cause significant issues…”

A situation like this -- where a sudden surge of demand pushes a couple key metals to the brink of
extinction – is extremely rare. In fact, it’s only been seen a handful of times in the last few centuries.
However, if it’s anything like past critical shortages… Prices of these metals could spike 5x or more,
very quickly. This metal is irreplaceable for making batteries. Most, if not all, other metals can be
substituted for something else. In fact, manufacturers are already experimenting with different
“formulations.” This metal is the only constant – you can’t make an electric car battery without it. It
also can “take years” until new supply gets added to the market, according to Barron’s. You see,
mining companies can’t just “flip a switch” and pump out an extra 6.7 million tons of this metal.
Unlike the oil market, where “producers can usually bring a drilled well to completion within 4-9
months”… this metal “is much slower to react,” says Barron’s.

Barron’s goes on to say, “Given the slow time to market... sharp changes in demand can have a
profound [impact] on prices...”
And this demand surge is pretty much guaranteed by the Chinese Government. As Luis Munuera,
an analyst with the International Energy Agency, says: “[China’s battery factories] are not a market
response. [They are] the amount of battery capacity the government wants to have.” In other words,
China isn’t creating this many batteries because they are “hoping” electric cars take off. They have a
much more powerful, lasting motive than simply making money. They believe it will fix their urgent,
crisis-level pollution problem that is literally killing its citizens. One in every 3 Chinese deaths is
caused by air pollution, according to Business Insider. That’s why the Chinese government is
banning all gas and diesel-powered vehicles... and… forcing battery production at a massive scale.
They need all 244 million drivers to either stop driving or use an electric car. And they need each of
the 28 million yearly car sales to be electric.
Put simply... The powerful reason China must make these batteries so quickly… the necessity
for this one battery-grade metal... and the time it takes miners to bring new supply of it to the
market... It all adds up to one result:

As soon as June 21, China’s First Battery Factory Could Spark The Biggest Metal Price Spike
In Modern History.

When it comes online, the price of one specific metal is set to go through the roof.
Other metals like nickel make up the bulk of EV batteries, but they just act as the highway for lithium
ions to move from point A to point B. It’s this movement that creates the battery’s power.

Right now, there’s a major shift toward electric vehicles taking place within the auto industry. Electric
car maker Tesla may have kicked off this shift, but other manufacturers like GM, BMW, and Nissan
are taking charge. And they have one thing in common:
They need LITHIUM

According to investment bank BMO Capital Markets, sales of EVs could reach 10% of the overall
vehicle market by 2025. BMO also thinks that in the coming years, EVs will drive battery demand.

DAJIN RESOURCES CORP.

Brian Findlay, President & CEO