By Pratima Desai
London (Reuters) – The uptrend in demand for metals such as those used in electric vehicles remains robust, according to IXM’s head of refined metal. Despite concerns about the slowdown in EV sales, estimating exact numbers is challenging due to the evolving nature of the market.
Sales of electric vehicles have faced obstacles like a lack of charging infrastructure and worries about resale values. However, Tom Mackay, the commodity trader at IXM, stated, “The electric vehicle industry is new and full of variables, making forecasting demand a guessing game.”
“Growth in electric vehicle sales may be slowing, but overall sales are still on the rise. Regional variations exist, but the overall demand for metals remains strong,” Mackay added.
Rho Motion consultancy reported a 32% increase in sales of battery EVs and plug-in hybrid EVs last year, reaching 13.63 million units. Despite a 25% decline in sales in the first quarter of this year, numbers bounced back with a 22% increase in the second quarter.
Copper is a crucial metal used in electric vehicle wiring and batteries, which often contain lithium, nickel, and cobalt depending on the chemistry. Mackay highlighted the technological advancements in LFP (lithium ion phosphate) chemistry, enabling some batteries to travel up to 1,000 kilometers and charge up to 80% in just 10 minutes.
“Recyclability is a key factor for automakers when selecting battery chemistries,” Mackay noted. While LFP batteries were initially developed for the Chinese market as a cheaper alternative to NCM (nickel cobalt manganese), the preference for NCM batteries persists in the Western world due to higher recycling value.
Mackay also mentioned that IXM’s global workforce has been reduced to around 440 employees, with a focus on retaining top talent. The company exited the aluminum business to ensure the desired returns from its resources.
Analysis:
The future of electric vehicles and metals demand is promising, with the market showing resilience despite challenges in EV sales. As technological advancements continue to drive innovation in battery chemistry, the demand for metals like copper, nickel, and cobalt is expected to remain strong. Automakers are increasingly considering recyclability as a crucial factor in selecting battery chemistries, shaping the future landscape of the industry. Investors and consumers alike should keep an eye on these evolving trends to make informed decisions regarding their finances and environmental impact.
