And the EV boom signals a boom for Battery Metals.
An ETF to consider for Battery Metals exposure is ACDC while two Battery Metals contender that stands out for me are Vulcan Energy (VUL) and Euro Manganese (EUR) which have been featured quite heavily on this thread.
Can the SPAC-tacular returns in the EV space ride on?
The pace of EV-SPAC deals in 2020 has been dizzying without showing any real signs of letting up despite some market turbulence on the way. A recap of some the deals recently completed or in the works is below.
Electric Last Mile Solutions is in talks to go public through a merger with Forum Merger III Corp. (NASDAQ:FIII). The company has a 675K square foot production plant in Indiana with a capacity to produce 100K vehicles annually.
Lithium-ion battery maker QuantumScape is poised to combine with Kensington Capital (NYSE:KCAC). Shares of KCAC are up more than 30% over the last few weeks.
Canoo (CNOO) is looking for SPAC magic through a business combination with Hennessy Capital (NASDAQ:HCAC). Canoo plans to offer its EV on a subscription-only basis when it goes into production in 2021 and wants to use a common skateboard platform across models.
XL Fleet is aiming to go public through a merger with Pivotal Investment Corporation II (NYSE:PIC.U) with an anticipated implied enterprise value of ~$1B. XL Fleet is described as the leader in connected fleet electrification solutions for commercial and municipal fleets.
EV battery maker Romeo Systems is in advanced talks to go public through a merger with blank-check company RMG Acquisition (NYSE:RMG). BorgWarner (NYSE:BWA) owns a piece of Romeo.
EV startup Arrival (ARVL) confirmed that it entered into a definitive business combination agreement with CIIG Merger Corp. (NASDAQ:CIIC). Shares of CIIC shot up more than 60% over the last week off the SPAC excitement.
Electric battery maker Microvast's merger talks with the blank check company Tuscan Holdings Corp (NASDAQ:THCBU) have reportedly progressed to advanced levels.
EV charging company ChargePoint is drawing closer to its reverse merger with Switchback Energy Acquisition (NYSE:SBE).
Lidar tech firm Luminar is going public through a $3.4B SPAC merger with Gores Metropoulos Inc (NASDAQ:GMHI). The company just inked a key deal with Mobileye (NASDAQ:INTC). Mobileye hopes to have a robotaxi service in operation by 2022 and sell its autonomous tech stack to other companies.
Lidar company Aeva will go public through a reverse merger with SPAC InterPrivate Acquisition (IPV.U) at a post-deal valuation of $2.1B. The deal is expected to close in early 2021.
Electric vehicle startup Faraday Future confirmed recently that it is working on a deal soon to go public through a reverse merger with a special purchase acquisition company.
Outside of the SPAC world, Lucid and Rivian (RIVN) raised capital in the private market, while Chinese automakers Nio (NYSE:NIO), Li Auto (NASDAQ:LI) and XPeng Motors (NYSE:XPEV) all fired off traditional IPOs.
Not to be lost in the shuffle, the EV mother ship is sitting on a market cap of over $460B. What is next for Tesla (NASDAQ:TSLA)?
