Electric Vehicle And Battery Metal News (November 2018)

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Includes: ARRRF, CTEQF, LNZCF
by: Gregor Gregersen
Summary

Matt Geiger: Nickel a big winner for the electric vehicle battery revolution.

Major vehicle manufacturers continues to increase electric vehicle production.

Tesla sales grow by almost 400% in California.

New plans by companies to circumvent potential limitations in electric vehicle charging.

We are witnessing a generational shift towards the electrification of energy. The growth in the development of electric vehicle(EV) market is astounding. Billions in investments are pouring in to drive research and development in EV batteries, superchargers and new EV models. Here are the latest developments in the electric vehicle and battery metals markets.

1) Interview with Matt Geiger of MJG Capital on the demand for nickel on the backdrop of the electric vehicle revolution.

  • Likely for class I & II nickel to be priced separately on the markets given their different usage and demand.
  • Nickel is still under the radar for most investors. Attention from lithium-ion battery demand has been mostly focused on lithium and cobalt.
  • Electric vehicles will eventually benefit consumers economically making the electric vehicle narrative increasingly acceptable.
  • Investors can invest in nickel with mining equities or go the physical route by holding physical nickel.
  • For mining equities, Matt is looking at Sama Resources(OTCPK:LNZCF), Clean Teq (OTCQX:CTEQF) for exposure to the HPAL story and Ardea Resources(OTCPK:ARRRF).

2) Volkswagen and Ford Motor plan strategic alliance to develop electric vehicles

  • Strategic alliance meant to save the companies billions of dollars by sharing the cost of developing autonomous and electric vehicles.
  • VW and Ford are under pressure to roll out more EVs in Europe, where emissions rules are being tightened.
  • VW plans to make EVs as cheap or cheaper than diesel vehicles to make electric cars a mass market product.
  • VW plans to make 2 to 3 million full-battery electric cars by 2025.

3) VW Plans to Boost Electric-Car Production in Germany

  • VW plans to boost battery-vehicle production at Zwickau in Eastern Germany beyond 100,000 vehicles annually.
  • Plans to offer more affordable electric vehicles than Tesla without eroding profits.
  • In China, VW has selected two factories to start electric-car production in 2020.
  • CEO Herbert Diess calls the electric vehicle trend a 'generational shift' that's disrupting the traditional business of producing and selling autos.

4) BMW lays out its latest electric vehicle plan

  • By the end of 2019, the BMW Group expects to have more than half a million electrified vehicles on the roads.
  • By 2021, the BMW Group will have five all-electric models. By 2025, this number will grow to twelve.
  • The electric motor does not require rare earths, enabling the BMW Group to reduce its dependence on their availability.
  • At the beginning of the third quarter, the BMW Group signed a long-term contract with the Chinese company Contemporary Amperex Technology Co. Limited (CATL) to supply battery cells with a value of four billion euros.

5) Hyundai and Kia to add 200 electric vehicles to Grab's fleet with S$343 million boost

  • Ride-hailing firm Grab has received US$250 million (S$343 million) in funding from Hyundai and its affiliate Kia to pilot a series of electric vehicle (EV) projects from next year.
  • As part of the partnership, 200 electric vehicles from Hyundai and Kia will be added to the Grab's fleet.
  • They will launch a series of projects in South-east Asia which will focus on using EVs to maximize cost efficiencies for Grab driver-partners.
  • Plans include working with regional governments and infrastructure players to improve charging networks.
  • Hyundai sees the partnership with Grab "accelerate the adoption of electric vehicles in South-east Asia".

6) Tesla sales grow by almost 400% in California

  • Tesla increased deliveries by 400% in California last quarter and helped push all-electric vehicle market share to a new record: 4%.
  • Tesla delivered 22,758 vehicles in California during the last quarter – up 399% from the same period last year.
  • California represented 27% of Tesla total sales around the world.
  • The Model 3 production ramp-up is responsible for most of the increase

7) Nio deploys 18 battery swap stations covering 2000+ km expressway

  • Although several companies tried and failed at battery swapping, Nio is trying to make battery swapping a reality.
  • The startup unveiled 18 NIO battery swap stations located in 14 service areas along the G4 Expressway in China.
  • They plan to deploy 1,100 battery swapping stations by 2020.
  • Nio has also delivered 3,350 ES8s, their electric SUV, since starting production this summer.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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