Electric Vehicle Growth Creates East-Asian Battery Mineral Boom
- NetworkNewsWire Editorial Coverage
NEW YORK, March 3, 2020 /PRNewswire/ -- The dramatic rise of electric vehicles (EV) is creating a surge in business for companies mining battery minerals, especially for companies operating in Indonesia, one of the world's top producers of battery minerals.
Bolt Metals Corporation (CSE:BOLT) (OTCQB:PCRCF) (XFRA:NXFE) (BOLT Profile), one of the companies working in Indonesia, recently announced a name change as it rebrands itself a leading resource developer in this growing market. Other companies in the surging market include BHP Group Limited (NYSE:BHP), which has major nickel-production facilities in Australia and sells 75% of its nickel into battery-supply chains. Freeport-McMoRan Inc. (NYSE:FCX) has a large operation in Indonesia producing copper, another key battery component. The world's largest producer of lithium, Sociedad Quimica y Minera (NYSE:SQM) is working to establish a focus on socially responsible mining. VALE S.A. (NYSE:VALE), one of the world's largest nickel producers, recently launched a new strategy for safe expansion of its mining operations.
- The popularity of EV is expected to create two- or three-fold increases in demand for battery minerals over the next decade.
- Key sources of these minerals include Indonesia, home to 25% of the world's nickel resources.
- China has taken a leading spot in EV-battery production, becoming a key market for these minerals.
- Indonesia is developing its own EV industry, creating new opportunities for miners and manufacturers.
To view an infographic of this editorial, click here.
Electric Vehicles Drive Battery Metal Market
The last decade saw several big trends in technology. One of the most dramatic was the rise of the electric vehicle. A pipe dream of green technologists at the start of the decade, these cars made big leaps forward. By 2018, global EV sales had reached 2 million units, and that number is expected to double to 4 million in 2020. In addition, the once-lofty price of these vehicles is falling, and their battery packs could be cheaper than equivalent combustion-engine models as early as 2022.