There’s no other way to say it: Electric cars are here to stay.
You can see as much anecdotally. Go on a drive for 30 minutes and count the number of Teslas you see on the road.
Go to shopping centers and grocery store parking lots and you just might see a line of electric car chargers.
Demand is rising for these vehicles, states are passing laws to be more EV friendly, and the manufacturers are retooling accordingly. Because of all of these factors, it’s only a matter of time before these cars become the norm.
I saw it recently at the Washington DC auto show, where EV offerings from all of the major brands were on display. In some cases they took up half of a given company’s display. They showed off both new models and prototypes. In many cases, these EVs were getting much of the attention from the people who were attending the convention.
It makes sense, too, given recent news.
Worldwide, electric vehicles crossed a threshold last year when they made up around 10% of vehicle sales. Much of this growth was seen in Europe and China and happened even as the car market continued dealing with economic issues and problems with supply.
In total, 7.8 million units were sold, which was a 68% increase from the previous year. Everyone who is anyone in the industry sees this trend continuing and eventually reaching a point where EVs become the norm while traditional combustion engine cars begin to decline in sales.
Here in the US, EV sales are still behind many other markets, but they are set to pick up. 5.8% of cars sold in the US last year were EVs, a rate that’s almost twice as much as the prior year. Manufacturers are coming out with new models. That, combined with legislation and a growth of supporting EV infrastructure is sure to move the market forward.
It’s why we’re going to see a growth in lithium investment right alongside more widespread EV adoption.
The batteries that make these cars run rely on lithium, and the available supply isn’t able to keep up with demand. So mining companies are scrambling to stake resources and sign contracts to get more of the metal in the supply chain.
The car companies are forming partnerships to secure their supplies as demand grows, making this one of the big investment growth stories of the next decade.
As an investor, you want to buy the miners, because that’s where the real money will be made in the EV boom.
With mining being the risky business that it is, it can be hard to tell which companies are going to get it right.
But there is one company set to take off thanks to a massive resource in a stable jurisdiction.
Our latest report has all the details that you need to know to make a profit on this trend. Learn all about just why this is such a massive opportunity.
What Else is Going on in EVs?
