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ST...D 2 hours ago | Jessica Cummins

Lawmakers in EU back plan to ban new ICE car sales from 2035ASX battery metal players are in the box seat As consumer EV demand grows, so too will battery metals

European industry, including carmakers Ford and Volvo, joined 26 companies in a public call to EU legislators ahead of the crucial vote claiming “the deadline of new fossil fuel engines is needed to ensure last cars and vans powered by internal combustion engines are off the road by 2050 – when Europe is required to reach net zero emissions.” Batteries, batteries, batteries
Julia Poliscanova, vehicles and mobility lead for the European Federation for Transport and Environment, said this means there is strong certainty in the downstream market that A LOT more lithium-ion batteries will be needed.
“Over the next five years we are likely to see a lot more interest in lithium, graphite and other battery metals players – this means more investments, partnership offers from the EU auto industry and much pressure from their procurement departments to secure long-term contacts for critical materials.
”Some ASX battery metal plays such as European-based lithium play Vulcan Energy (ASX:VUL) have already started to notice the demand is much larger than what they are likely to be able to supply.“On our side, we have already secured several off-take agreements out of Europe with automakers and battery makers who are now coming back to us asking for more volume for longer,” VUL chief commercial officer Vincent Pedailles said.“So they are coming back to us, trying to renegotiate those contracts as early as 2025, which is when we are starting production.“We are currently in the phase of readjusting some of those contracts if we can. When we negotiated the contracts at the end of last year, we saw that the demand was much larger than what we were able to supply.“We negotiated more than 300,000t per year of lithium hydroxide when at the time we were only able to supply 40,000t and now volumes are even larger.”