Battery Metals Report 2020 - Update

Car manufacturers in particular are having to contend with collapsed supply chains and sales problems. What currently appears to be a total loss, however, is likely to be reversed soon in additional incentive programs to boost sales. Electric vehicles, which are already subsidised by the state, are likely to receive additional start-up assistance, especially from countries such as Germany, China and Scandinavia, which may even make them more attractive (economically) than internal combustion engines. In 2021 and 2022 in particular, the model ranges of leading carmakers with regard to electric drives - especially for small and medium-sized cars - should finally appeal to the general public and provide an additional boost to demand.

It is to be expected that the year 2020 will see a bottoming out of both prices and sentiment for the main battery metals lithium, cobalt, nickel, vanadium and copper, even in this global environment. In the past four to six months, we have seen projects come to a standstill, production has been cut back and expansion plans have been delayed - bringing forward the forecast supply shortage by two to three years. Whereas an extreme supply shortage, especially for lithium and nickel, was previously forecast for 2025/2026, it is now expected to occur as early as 2023. The negative effects have already been priced in and the mood in the battery metals sector will improve again by 2021. In addition, 2021 is expected to be a transitional year when the real demand market for battery metals, especially for lithium and nickel, will begin to develop.

This report provides a wealth of information about the battery metal sector and offers insightful interviews with exclusively selected experts from the industry. The report is completed by the presentation of a number of interesting companies that are suitable for speculation on rising battery metal prices.