Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
ARE YOU LOVING YOUR SERVITUDE? - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

When Will Electric Cars Take Over The Roads?

Companies / Auto Sector May 04, 2018 - 01:22 PM GMT

By: OilPrice_Com

Companies

The age of the electric vehicle (EV) will be here sooner than you think.

Out of 1 billion cars in the world, only 2 million are electric. But that will soon change, as costs diminish, and more governments encourage the adoption of EVs to cut carbon emissions and fight urban pollution.

According to Bloomberg, by 2040, 54 percent of all new car sales will be for EVs. Millions of new EVs will take a big bite out of oil demand and displace 8 million barrels of transport fuel (gasoline and diesel) every day.


But the biggest factor in the EV surge is what’s under the hood…lithium ion batteries.

Bloomberg estimates that in the late 2020s, cheap battery technology will allow EV production to skyrocket.

The key is lithium, “white petroleum,” which is quickly becoming the world’s most sought-after mineral.

Jonathan More of lithium miner Power Metals Corp. calls it the largest commodity boom “in a generation.” The world is going to need “mountains of lithium, from all over the world, to satisfy the global hunger for batteries.”

A lot of those lithium batteries will be needed for EVs: in fact, major oil companies like Total SA have estimated that 20 million EVs will be on the road by 2030, and they’ll need enough batteries to power 200 million cell phones. That’s 1.2 million tons, six times current production levels.

With future demand like that, it’s no wonder that miners like Power Metals are so bullish. With a 15,000m drilling program about to get underway on 3000 hectares, Power Metals is at the center of the Canadian lithium belt that could contain as much as 7.5 million tons of lithium.

Forget oil and gas; the future of energy belongs to lithium.

Carpocalypse Now”

When EVs first started to roll off assembly lines, plenty of skeptics scoffed. EV sales were tiny and concentrated on the luxury car market.

But now that’s all changing.

In March 2018, more than 40,000 EVs were sold in Europe, a 41 percent increase from last year. Total sales for the year were up 37 percent from 2017. European auto-makers like Volvo want to concentrate on EVs, and plan on electric cars and trucks covering 50 percent of all sales by 2025.

Porsche will be 50 percent EV by 2023. General Motors and Toyota want to sell 1 million EVs per year by 2025.

The real juggernaut in the global EV market is China, where half of all EVs are currently in use. China will remain the chief EV market for the next 5-7 years, and demand is growing more quickly than expected.

Global EV sales are estimated to increase from 1.2 million in 2017 to 1.6 million in 2018 and 2 million in 2019. By 2025, some states have decreed that EVs must make up 15 percent of all new car sales.

The Boston Consulting Group released a report estimating that hybrids and EVS would cut the market share of internal combustion cars by 50 percent by 2030.

Whether you’re an EV skeptic or a Tesla super-fan, it’s impossible to deny that EVs are going to transform the international auto market…and trigger a massive increase in demand for lithium, the key ingredient in all EV batteries.

The White Gold

You can’t have EVs without lithium ion batteries. That’s why Tesla CEO Elon Musk built a “gigafactory” in the Nevada desert, where thousands of batteries are churned out every year.

The worldwide battery market was $5.1 billion in 2017, but it’s to expand rapidly and could reach $58.8 billion by 2024.

Batteries have gotten a lot cheaper to make, but it all hinges on securing an adequate supply of lithium.

New lithium deposits are being uncovered all the time. One asset, Paterson Lake in Ontario, contains thousands of tons of lithium spodumene locked away in “pegmatite,” hard-rock formations that are entirely different from the salt-brine lithium found in South America.

Power Metals Corp., which owns the Paterson Lake property, has launched an aggressive 15,000m drilling program. According to head geologist Dr. Julie Selway, the property contains a “staggering amount of pegmatite dykes” and a “huge potential of finding more lithium mineralization.”

Along with firms like Nemaska Lithium and Quantum Minerals Corp., Power Metals (PMC) is at the forefront of Canada’s lithium boom.

Together with new production in South America, Australia and Europe, Canada will help feed the world’s lithium demand and facilitate the surge in EVs by the 2020s.

When EV demand began picking up in 2015, it triggered a bull market for lithium. Prices shot up as battery manufacturers started buying up all the lithium they could find.

Lithium prices remained strong in early 2018, and capital is flooding into lithium projects all over the world.

A lot of the money is coming from China, the world’s leading battery manufacturer. Capital is seeking out lithium properties in South America, as Chinese companies hope to secure lithium supplies to feed EV battery growth.

A Chinese investment group recently acquired Lithium X for $265 million, taking over that company’s Argentinian property at the center of South America’s “lithium triangle.”

Chile and Argentina are the world’s no. 2 and no. 3 lithium producers, and production in Argentina is expected to triple by 2019 to more than 15,000 metric tons per year.

So aggressive has the Chinese push into South American lithium been, the Chileans have started to push back, warning one Chinese firm away from attempting to buy one major lithium producer, worth $5 billion.

Money is flooding into the lithium sector. And lithium miners like Power Metals will need every penny to fuel surging battery demand.

Fueling the Fire

According to one August 2017 analysis, the global lithium ion battery market could reach $93 billion by 2025, growing at a rate of 17 percent each year.

To feed that colossal demand, the world is going to need lithium. A lot of it.

Miners in Canada and South America will bear the burden. Power Metals could potentially turn Canada into a major lithium producer, and it’s not alone: other companies like Nemaska Lithium have also made big discoveries, riding them to billion-dollar valuations.

Battery manufacturers feeding the EV market will rely upon new sources of lithium production. The surge of investment into lithium mining could turn into a flood.

Pretium Resources (NYSE:PVG): This impressive Canadian company is engaged in the acquisition, exploration and development of precious metal resource properties in the Americas.. Additionally, construction and engineering activities at its top location continue to advance, and commercial production is targeted for this year.

The company’s modest market cap and stock price make it an appealing buy for investors. Pretium has an impressive portfolio and if you can catch the stock while the price is right, there could be huge opportunity for upside.

Newmont Mining Corp (NYSE:NEM) Founded over 100 years ago, Newmont Mining Corporation is one of the leading mining companies in the world. The company holds assets in Peru, Australia, Ghana, Indonesia, Mexico, and around the United States. Primarily focusing on gold and copper, Newmont has steadily carved out a name for itself among those in the industry.

Newmont has had an excellent start to 2018, and it is set to keep up the pace as burnt bitcoin buyers move back to gold and silver.

Agnico Eagle Mines Ltd (NYSE:AEM) Canadian based miner, Agnico Eagle Mines is an especially noteworthy company for investors. Why? Between 1991-2010, the company paid out dividends every year. With operations in Quebec, Mexico, and Finland, the company also is taking place in exploration activities in Europe, Latin America, and the United States. This is certainly a company with tremendous potential that grows better by the day.

Investors have certainly taken note. In the past month, Agnico has seen its share prices climb steadily, and 2018 looks to be shaping up to be a promising year.

Turquoise Hill Resources (NYSE:TRQ) is a mid-cap Canadian mineral exploration and development company headquartered in Vancouver, British Columbia. Its focus is on the Pacific Rim where it is in the process of developing several large mines.

The company mines a diversified set of metals/minerals including Coal, Gold, Copper, Molybdenum, Silver, Rhenium, Uranium, Lead and Zinc. One of the fortes of Turquoise hill is its good relationship with mining giant Rio Tinto.

Going forward, Turquoise’s success at the giant Oyu Tolgoi project in Mongolia will be crucial to boost its lagging share price.

Cameco Corporation (NYSE:CCJ) Cameco is one of the largest global producers and sellers of uranium and nuclear fuel. Its operating uranium properties include the McArthur River/Key Lake, Cigar Lake, and Rabbit Lake properties located in Saskatchewan, Canada; the Inkai property situated in Kazakhstan; the Smith Ranch-Highland property located in Wyoming, the United States; and the Crow Butte property situated in Nebraska.

While many analysts see low uranium prices as a problem for miners, an OPEC like move from world uranium leader Kazakhstan to bump prices could benefit Cameco and its peers.

A strong push towards nuclear power from China, India and the Middle East could create further upside for this promising miner.

By. James Burgess

Link to original article: https://oilprice.com/Alternative-Energy/Renewable-Energy/When-Will-Electric-Cars-Take-Over-The-Roads.html

NOT AN INVESTMENT ADVISOR. Oilprice.com is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

RISK OF INVESTING. Investing is inherently risky. While a potential for rewards exists, by investing, you are putting yourself at risk. You must be aware of the risks and be willing to accept them in order to invest in any type of security. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities.

RISK OF BIAS. We often own shares in the companies we feature. For those reasons, please be aware that we are extremely bias in regards to the companies we write about and feature in our newsletter and on our website.

OilPrice.com Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules