3 experts, 6 picks: Which ASX battery metals stocks are best...

3 experts, 6 picks: Which ASX battery metals stocks are best when it comes to buying into the EV boom?

The growth in the rate of adoption for electric vehicles and the increase in battery production has led to a significant increase in demand for battery metals such as nickel, cobalt, graphite, and lithium.

That trend has accelerated a little more quickly than what most people would have expected, with VP Capital co-founder, John So, comparing the electric vehicle (EV) transition to the phasing out of old-school mobile phones for the much-preferred Android or Apple smartphone.

“When it happens, it happens very quickly and the question is, in five years’ time is the average consumer going to be buying a petrol-powered car or an EV?

“Two years ago most people would have said a petrol vehicle car, but nowadays a lot more people will say they are considering buying an electric vehicle.”

While the trend is partly consumer driven, car manufacturers themselves are now trying to get ahead of the curve by phasing out petrol models and the truth is before we know it, we won’t have a choice.

“In five years’ time some of the models of cars, whether it’s manufactured at the cheaper end or the more expensive cars, they will soon all be EVs,” So said.

“What that means is, given electric vehicles is the single largest item that is using lithium because of the lithium battery, demand is going to accelerate and it’s not going to stop.”

Battery metal picks from the experts

John So, VP Capital co-founder

FAVOURITE METALS: Lithium and nickel

So says it comes down to a process of elimination when choosing his favourite battery metals.

“Cobalt is heavily manufactured in Congo and it’s usually a by-product when larger companies mine nickel, copper and zinc.

“Then you’ve got graphite and not all graphite is produced equally – it depends on flake sizes, among other things, and processing costs vary significantly.

“Also not as many ASX companies have experience with it compared to nickel or lithium, so for me it’s not as obvious on the priority list in terms of how I get upstream commodity exposure to electric vehicles.”

STOCK PICKS: Firefinch (ASX:FFX), Allkem (ASX:AKE), and IGO Ltd (ASX:IGO)

“FFX is one of my favourite picks in the near term. It is trading at a discount because the assets are in Mali, but I think given how advanced the project, it is the next ASX listed lithium player that is positioned to start construction after Core Lithium, and I think there will be a re-rating that will happen as a result.”