Sunday, July 30, 2017

Lack of metals could slow EV growth

Guardian:

Britain last week joined France in pledging to ban sales of petrol and diesel cars by 2040 in an attempt to cut toxic vehicle emissions. The move to battery-powered vehicles has been a long time coming. Environmental campaigners claim that charging cars and vans from the grid, like a laptop, is sure to be cleaner than petrol or diesel power. 

(snip)

Huge potential profits await those that can tap into this burgeoning market. Transparency Market Research estimated the global lithium-ion battery market at $30bn in 2015, rising to more than $75bn by 2024. Morgan Stanley analysts expect global car sales to rise by 50% by 2050 to more than 130m units a year, and estimates that electric vehicles will account for at least 47% of that total.

(snip)

However, the road to a promised land of zero-emission vehicles is littered with speed bumps and red lights that threaten to seriously slow the progress of the electric car. Battery makers are struggling to secure supplies of key ingredients in these large power packs – mainly cobalt and lithium. The hopes of both battery and vehicle manufacturers hang on the mining sector finding more deposits of these precious minerals.

The prospects for speculating on lithium and cobalt seem very good over the next few years. The ability to scale electric vehicles will depend on relatively cheap and plentiful supplies of these metals. Right now that does not seem to be the case so there lies the opportunity.

No comments:

Related Posts Plugin for WordPress, Blogger...