These days investors are seeking more than a piece of paper with a stock number on it. Precious metals have become a show-stopper according to finance news online, and it’s mostly due to electric cars.
Expert stock analysts say better and cheaper batteries are needed if e-mobility is to succeed. They’re talking about electric vehicles and the raw materials required to make them run. These experts point out the popularity of metals, especially by Chinese miners. Those that track finance news online can see how these miners are buying specific metals, needed for the electric car revolution, around the world, and analysts predict the demand will keep growing.
The important raw materials, lithium, and cobalt are high-demand goods but could be scarce soon because the demand is worldwide. Every country wants them for electric car production. Without them, say, experts, the revolution for cars and digital goods will slow down.
Lithium, also referred to as “white gold” is indispensable. Batteries of e-cars, but also many other electronic products, like smartphones, and laptops are dependent on lithium, and while China mines Lithium, the country is trying to gain access to ever larger deposits worldwide.
International Desires Increase For Metals
Should we invest? A leading supplier of lithium carbonate to the battery industry had its stock rise by 80 percent in just 12 months. According to experts, global demand for lithium will at least double by the year 2025. And lithium, cobalt, nickel, and platinum, as well as graphite and other rare earth metals play a central role in the high-tech economy, and also offers opportunities for investments.
Investors’ interest in metal rose when electric and lithium (EV) vehicles made headlines, and with the CEO promising to sell more than one million Tesla, which depends on lithium. This led to leading car manufacturers following suit, and analysts say investors should include shares of metals in their portfolios.
What’s Driving Demands For Cobalt?
The first thing that’s driving demand for cobalt is the quest for alternative fuel vehicles, which use lithium batteries. In order to produce lithium batteries, cobalt is required. It’s the raw material, combined with lithium, that gives blood to today’s new electric car market.
And not only car companies, but smartphone giants are in talks to sign long-term agreements with some mining companies for several thousand tons of cobalt to power up their lithium-ion batteries.
Experts recommend if you haven’t begun investing, now is the time, and the proof is in the race to the rare minerals needed for the construction of this new technology. Consistently, analysts realize just how vital these precious raw materials are to the future of manufacturing. These experts also point out, lithium and cobalt stock prices have nearly tripled in the last decade.
Manufacturers Merging Needs
One of the leading suppliers of lithium carbonate to the battery industry, best represents what is happening. In 2016, the company’s stock rose by 80% in just 12 months. The world’s biggest cobalt miner, who had a profit of $1.4 billion in 2017, offers one of the best potentials for investors.
One thing is for sure, the market for batteries will increase in demand, and that means lithium and cobalt are sure winners.
