Pertinent market/industry news/articles, page-76

Just pulling some interesting data from a lithium miners quarterly update - record and accelerating growth in demand for EVs in China and US. No sign that demand for high quality Nickel or Cobalt Sulfate going to slow down anytime soon


The New Energy Vehicle (“NEV”) sector in China once again recorded significant growth in production volumes for the first two months of 2018. The China Association of Automobile Manufacturers reported total NEV production of c.147,800 vehicles for Q1 2018, representing a 155% YoY increase compared to Q1 2017. To be specific, it is estimated that the total number of Battery Electric Vehicles (“BEV”) produced throughout these months was c.107,700 vehicles, representing growth of 125% YoY, whilst total production of Plug-in Hybrid Electric Vehicles (“PHEV”) was c.40,100 vehicles, representing growth of 301% YoY.

China continues to incentivize automakers to develop longer-range BEVs by shifting subsidies to the higher end of the market. The central government flagged its intention to increase incentives for NEVs that have a range of >400km, whilst reducing subsidies on shorter range vehicles. Greater range vehicles are generally characterized by larger batteries and ultimately a greater demand for lithium raw materials. According to data released by GGII combined with that from CAAM, the average battery size of electric vehicles produced in China in 2017 was c.45kWh. Furthermore, government policy and investment continue to evolve in order to support the development of the broader electric vehicle value chain.

China has committed investment to build out 500,000 public charging stations by 2020, which will service the expected 5 million NEVs expected to be on the road in that same period.

Electric vehicle consumption experienced its 30th consecutive monthly YoY sales gain in the United States, with March recording a new all-time record in electric vehicle deliveries (26,400 vehicles). InsideEVs reported plug-in vehicle deliveries of 55,300 vehicles in Q1 2018, representing 32% growth YoY.

Jaguar and Waymo announced a partnership to develop a fleet of fully electric, self-driving luxury vehicles. The partnership between Jaguar and Waymo is one of the first instances of a luxury vehicle brand joining forces with a tech company to advance autonomous driving system.

The world’s largest auto manufacturer, VW, recently announced plans to invest into 16 electric vehicle factories across the globe by the end of 2022. VW’s strategy to produce as many as 3 million electric vehicles by 2025 has been underwritten by various deals, thought to worth an aggregate of €20 billion with the world’s largest battery manufacturers, including Samsung SDI, LG Chem and Contemporary Amperex Technology Ltd.