The age of electric vehicles (EVs) is here sooner than you think. The age of the electric vehicle (EV) will be here sooner than you think.
Out of 1 billion cars in the world, only 2 million are electric. But that will soon change, as costs diminish, and more governments encourage the adoption of EVs to cut carbon emissions and fight urban pollution.
First of all and out of 1 billion cars in the world, only 2 million are electric vehicles. But that will soon change. That’s because as costs diminish, more governments encourage the adoption of electric vehicles. They also to cut carbon emissions and fight urban pollution.
According to Bloomberg, by 2040, 54 percent of all new car sales will be for electric vehicles. Millions of new EVs will take a big bite out of oil demand and displace 8 million barrels of transport fuel. Yes folks, I mean gasoline and diesel fuel every day.
But the biggest factor in the EV surge is what’s under the hood…lithium ion batteries.
Bloomberg estimates that in the late 2020s, cheap battery technology will allow EVs production to skyrocket.
The key is lithium, “white petroleum,” which is quickly becoming the world’s most sought-after mineral.
Jonathan More of lithium miner Power Metals Corp. calls it the largest commodity boom “in a generation.” The world is going to need “mountains of lithium, from all over the world, to satisfy the global hunger for batteries.”
A lot of those lithium batteries will be needed for EVs. Because fact, major oil companies like Total SA have estimated that 20 million EVs will be on the road by 2030, and they’ll need enough batteries to power 200 million cell phones. That’s 1.2 million tons, six times current production levels.
With future demand like that, it’s no wonder that miners like Power Metals are so bullish. With a 15,000m drilling program about to get underway on 3000 hectares, Power Metals is at the center of the Canadian lithium belt that could contain as much as 7.5 million tons of lithium.
Forget oil and gas; the future of energy belongs to lithium.
When electric vehicles first started to roll off assembly lines, plenty of skeptics scoffed. EV sales were tiny and concentrated on the luxury car market.
But now that’s all changing
In March 2018,more than 40,000 EVs were sold in Europe, a 41 percent increase from last year. Total sales for the year were up 37 percent from 2017. European auto-makers like Volvo want to concentrate on EVs, and plan on electric cars and trucks covering 50 percent of all sales by 2025.
Porsche will be 50 percent EV by 2023. General Motors and Toyota want to sell 1 million EVs per year by 2025.
The real juggernaut in the global EV market is China, where half of all EVs are currently in use. China will remain the chief EV market for the next 5-7 years, and demand is growing more quickly than expected.
Global EV sales are estimated to increase from 1.2 million in 2017 to 1.6 million in 2018 and 2 million in 2019. By 2025, some states have decreed that EVs must make up 15 percent of all new car sales.
The Boston Consulting Group released a report estimating that hybrids and EVS would cut the market share of internal combustion cars by 50 percent by 2030.
Whether you’re an EV skeptic or a Tesla super-fan, it’s impossible to deny that EVs are going to transform the international auto market…and trigger a massive increase in demand for lithium, the key ingredient in all EV batteries.
The White Gold
You can’t have EVs without lithium ion batteries. That’s why Tesla CEO Elon Musk built a “gigafactory” in the Nevada desert, where thousands of batteries are churned out every year.
The worldwide battery market was $5.1 billion in 2017, but it’s to expand rapidly and could reach $58.8 billion by 2024.
Batteries have gotten a lot cheaper to make, but it all hinges on securing an adequate supply of lithium.
New lithium deposits are being uncovered all the time. One asset, Paterson Lake in Ontario, contains thousands of tons of lithium spodumene locked away in “pegmatite,” hard-rock formations that are entirely different from the salt-brine lithium found in South America.
Power Metals Corp., which owns the Paterson Lake property, has launched an aggressive 15,000m drilling program. According to head geologist Dr. Julie Selway, the property contains a “staggering amount of pegmatite dykes” and a “huge potential of finding more lithium mineralization.”
Along with firms like Nemaska Lithium and Quantum Minerals Corp., Power Metals (PMC) is at the forefront of Canada’s lithium boom.
Together with new production in South America, Australia and Europe, Canada will help feed the world’s lithium demand and facilitate the surge in EVs by the 2020s.
When EV demand began picking up in 2015, it triggered a bull market for lithium. Prices shot up as battery manufacturers started buying up all the lithium they could find.