The sharp rise in new registrations of electric vehicles since 2020 has had a significant impact on global demand for battery metals, which are essential for the manufacture of batteries, wiring, and switching elements. This is because electric vehicles require significantly more and, in some cases, different raw materials than vehicles with combustion engines, particularly for the manufacture of lithium-ion batteries and electrical infrastructure. As a result, a dynamic raw materials market has developed in recent years, primarily affecting metals such as lithium, nickel, cobalt, copper, and tin.
However, the growth in demand for metals needed for batteries (not only for electric vehicles!), compounds, and switching elements is accelerating much faster than supply can be increased by expanding existing mines or establishing new ones.
The International Energy Agency (IEA) estimates that the industry will need to bring 50 additional lithium mines, 60 additional nickel mines, and 17 additional cobalt mines into operation by 2030 in order to meet global net carbon emission targets. Leading car manufacturers have now recognized this and, in addition to purchase agreements, are increasingly securing direct stakes in mines. There is a real sense of panic in the boardrooms of major car manufacturers (not only because of the shortage of chips), but also among battery manufacturers, to secure sufficient quantities of the metals they need – and, if possible, from sources that are not only cheap but also have the lowest possible carbon footprint.
For investors, this presents an excellent opportunity to enter the world of battery metals, as we will explain in detail below.
