Alaska Energy Metals Pushes Forward in Domestic Nickel Exploration Efforts

With the United States aiming for greater energy independence, Alaska's mineral-rich deposits could play a crucial role in reducing reliance on imports. Amid this rising demand, Canadian mining company Alaska Energy Metals (AEM) is focusing on exploring Alaska's underground nickel deposits, seeing it as a strategic opportunity to bolster the domestic supply chain.

Greg Beischer, President, CEO, and Director of AEM, expressed his views, stating, "We should be working harder to increase our domestic resources and secure a domestic supply chain." Under Beischer's leadership, AEM is progressing with ambitious plans to boost the U.S. nickel supply through its flagship project, the Nikolai deposit.

The U.S. Department of Energy has identified 18 minerals as critical to energy technology, and nickel is one of these, having key importance in the clean energy transition. Beyond its traditional uses in stainless steel and turbine components, nickel's role in electric vehicle (EV) batteries has significantly increased its value, positioning it as a vital material for a sustainable future. Currently, the U.S. lacks a domestic source for nickel production, making efforts like AEM's essential for reducing vulnerabilities in the supply chain.

AEM's main focus, the Nikolai deposit, spans 23,000 acres in Alaska's southern foothills. The site contains nickel, along with copper, cobalt, platinum, and palladium—all minerals deemed critical by the U.S. Department of Energy. Beischer highlighted that the multi-metal nature of the Nikolai deposits could be instrumental in building a robust domestic supply chain for multiple essential resources.

Since starting exploration, AEM's findings at the Nikolai deposit have exceeded expectations. According to Beischer, "As a result of the drilling we did in summer 2023, along with the historical information for the project that we had purchased, we were able to calculate a mineral resource estimate that was really quite substantial—in fact, bigger than we had really imagined would be possible." The updated estimates indicate 3.9 billion pounds of indicated nickel and 4.2 billion pounds of inferred resources, surpassing initial projections of around 3 billion pounds. However, Beischer noted that actual recovery rates might be lower, with early results suggesting 50% to 55% recovery rates.

The 2024 drilling season, which began in July and covered approximately 4,000 meters, was consistent with last year, although market conditions for nickel have impacted expansion plans. Beischer pointed out that a surge in nickel supply from Indonesian and Chinese operations has pushed prices down, directly affecting AEM's share value and limiting funding opportunities for broader drilling activities.

Despite these challenges, AEM is steadily moving forward with its goals, gathering data for baseline environmental studies and preparing for upcoming project milestones. The company aims to complete a preliminary economic assessment by the end of 2025, with potential for a pre-feasibility study if conditions are favorable.

The Nikolai project remains central to AEM's vision, with the company actively seeking funding and partnership opportunities, including a potential Department of Defense (DoD) grant to expedite exploration efforts. Beischer mentioned that major investors typically wait for more advanced stages, such as the completion of an economic assessment, before committing significant funds. AEM also values finding a strategic partner capable of bringing not just financial backing but also expertise.

Beischer stressed that having the Nikolai Project located on U.S. soil means adhering to some of the world's highest environmental standards. AEM's commitment goes beyond extracting minerals—the company aims to contribute to U.S. self-sufficiency in critical minerals and support the nation's clean energy transition.