Friday, August 4, 2017

Electric car demand to benefit lithium, copper, an cobalt demand


The revolution in electric vehicles set to upturn industries from energy to infrastructure is also creating winners and losers within the world’s biggest metals markets.


The outlook for greener transportation got a boost this year as the U.K. joined France and Norway in saying it would ban fossil-fuel car sales in coming decades. That’s as Volvo AB announced plans to abandon the combustion engine and Tesla Inc. unveiled its latest, cheaper Model 3. Such vehicles will outsell their petroleum-driven equivalents within two decades, Bloomberg New Energy Finance estimates.

"For some of the metals, it’s a complete game changer," said Simona Gambarini, a commodities economist at Capital Economics Ltd. in London. "We’ve already seen a big impact on some metals like cobalt and lithium, which have soared over the past couple of years."

This will be interesting to watch. If governments force people into electric cars it will speed the process of transitioning to an electric future. However as oil demand shrinks the price of oil will go down stimulating demand and lessening the trend to electric vehicles.

Things are a bit more complicated than they seem at the surface.

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