Electric Vehicles seem to be the go-to expression of support for the sustainable energy movement.
A surge in demand for electric vehicles is sending the price of raw materials soaring. That’s what we want to hear as investors.
There’s a slight conflict though. It’s threatening to slow the push toward making cheaper batteries that are key to more widespread adoption.
China is the biggest player in EV batteries, with the majority of the world’s capacity, and has a stranglehold over the processing of crucial battery materials.
With demand building, producers are striving to make cheaper batteries. That results in rising prices of raw materials including silver, gold, platinum, and palladium.
Japan is upping its game.
Japan’s newly created Battery Association for Supply Chain (BASC) said on Wednesday it will seek increased government support as it aims to reinforce the industry’s global competitiveness and speed up decarbonization.
Formed this month, the BASC’s 55 members include Nissan Motor Co Ltd, Sumitomo Metal Mining Co Ltd, Asahi Kasei Corp, Panasonic Corp, and Toyotsu Lithium Corp.
Isao Abe, chairman of the BASC, told a news conference that they will come up with policy recommendations that will boost the global competitiveness of the Japanese battery industry and help the industry’s decarbonization.
Then, there’s South Korea.
Samsung is developing an EV battery that has a 500-mile range, twice the current longest battery capacity in the world.
They did so by removing lithium from the battery and replacing it with a silver carbon layer.
The researchers say that using silver carbon instead of lithium metal in a prototype pouch yields a battery with a higher capacity, lengthens the cycle life, and makes the battery safer.
All these developments are demanding precious metals.
With the Covid19 vaccine moving in, the industries are slowly returning to operations. That includes the precious metals industry, mining, production, retail, and others.
We can expect an increase in supply but it will take time before it catches upon demand, if at all.
That means you still have time to invest in precious metals. And Noble Gold can help you out on that.