The electrification of vehicles has become a major trend among investors.
We can see that with the stellar rise of EV stocks like Tesla and Nio just this year. While there have been some setbacks with the pandemic showing no signs of cooling off, EV demand is expected to rise, according to Bloomberg New Energy Finance, as noted by Forbes, “which sees improved batteries, more readily available charging infrastructure, new markets, and price parity with internal combustion engine (ICE) vehicles as major drivers. The study finds that EVs will hit 10% of global passenger vehicle sales by 2025, rising to 28% in 2030 and 58% in 2040.”
However, for that to happen, the world needs far more lithium supply and graphite. For example, at the moment, graphite is in big demand. After all, it’s an essential material used for producing the anode of lithium-ion batteries for electric vehicles and energy storage. Better, “USGS also sees a major spike in U.S. demand for graphite when Tesla Motor’s Gigafactory, an enormous lithium-ion battery facility being constructed in Nevada, is fully operational.”
In addition, according to Adroit Market Research, “The global graphite market projected to be valued at around $27.03 billion by 2025. Furthermore, global graphite demand is anticipated to grow at remarkable pace at a CAGR of 6.3% over the forecast period. Usage of graphite in car batteries for electric and hybrid electric vehicles is estimated to significantly boost the demand for graphite over the forecast period.”