- EV sales slowdown narrative? Pfft, yeah right. Australia just hit record yearly EV sales
- Globally, EV sales are also encouraging with 27% growth predicted and yes, this is good for battery metals
- ASX battery metal stocks led this week by: KM1, MTM, GSR
If the lithium supply glut keeping your battery metal stocks portfolio suppressed keeps you up at night, here’s something to potentially alleviate those concerns. If you take a long-term view, that is.
New data suggests the sales of electric vehicles (EVs) are still on the rise globally, not to mention here in Australia, too – which is, so far, a pretty tough market for the sector.
Australia’s record EV sales year
According to new statistics released by the Federal Chamber of Automotive Industries (FCAI), EV sales doubled to 7.2% of total new vehicle sales as Australia sold a record number of new vehicles in 2023.
In total, not just EVs, 1,216,780 vehicles were sold in Australia during the year, which eclipsed the previous highest sales result of 1,189,116 – achieved in 2017.
And when you add in plug-in hybrid, and hybrid vehicles, it actually brings the total for electrified vehicle sales to 16.2 per cent of new vehicle sales in Australia in 2023.
Tony Weber, chief executive of FCAI, said this extraordinary result is a testament to the adaptability and resilience of both industry players and consumers alike.
So when you consider that apparently only eight per cent of Australians would consider an electric vehicle as their next car purchase (according toCarExpert, citing a report from Savvy underpinned by stats from a global Deloitte survey), this fresh data is pretty encouraging.
Global EV sales keep growing, too
Globally the news is just as good.
The latest research from technology market analysis firm Canalys show that sales of global electric vehicles (EVs) grew 29% and reached 13.7 million units in 2023.
In 2024, Canalys predicts the growth to continue along a similar vein, with about 27% global EV sale growth, hitting 17.5 million units, with China still taking the lion’s share of the market, followed by Europe and North America.
Source: Canalys
“Appealing new EVs were launched at the end of 2023, setting the stage for 2024,” noted Alvin Liu, a Canalys analyst.
“EVs are the core growth driver for the vehicle market in Greater China. EVs from Chinese carmakers, which are expected to take up 78% of the market in 2024, are pulling ahead, widening the user experience gap compared to internal combustion engine (ICE) vehicles.”
And US clean energy news websiteCleanTechnicaalso reports positive EV results and outlook:
“In November, global plugin vehicle registrations broke their previous monthly sales record (1,291,000 units), which was just set in September 2023. They reached 1,385,000 units in November. In the end, plugins represented 19% share of the overall auto market (13% BEV share alone).”
Throwing some salt in the mix
*‘s Reuben Adams’ “Pass the Salt” article from late November delved into alternative battery tech, focusing on sodium ion.
That’s worth re-visiting as fresh headlines emerge this week regarding the world’s biggest electric car maker, BYD, “betting big” on its US$1.4bn sodium-ion battery factory, the world’s largest.
BYD has now officially begun construction of the plant halfway between Beijing and Shanghai and the planned annual output capacity is 30 GWh.
And this week, too, the first EVs with sodium-ion batteries rolled off the line in China,Battery Newsreported.
As Reubs wrote in November, “sodium ion is the only viable EV battery chemistry that doesn’t need lithium”.
“Sodium-ion is cheaper, safer, longer lasting, and better in cold temps than lithium-ion but, like LFP, ostensibly suffers from a slower charge rate and lower energy density.”
That said, LFP (lithium iron phosphate) and NCM (nickel cobalt manganese) battery tech is also still evolving at a rapid pace. And, just a reminder, too, lithium heads, of Benchmark Mineral Intelligence senior analyst Rory McNulty PhD’s words to*not so long ago, who noted that:
“The sodium-ion battery industry and supply chains have a long way to go to achieve mass market commercialisation, let alone secure 50% of the Chinese domestic EV market (something analyst George Heppel has said sodium-ion batteries could claim by the end of the decade).
“This is not to say that it can’t happen, but there are several technology, supply chain, and manufacturing challenges that need to be overcome to achieve mass market penetration.”
ASX battery metals form guide:
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop. (Note: figures accurate per ASX at 4pm Jan 10.)
Stocks missing from this list? Email rob.badman@unauthorised investment advice
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