Macquarie turns bullish on lithium as VW steps up its EV push
Finally some good news for our bashed up lithium stocks
12th July 2019
Resources Rising Stars
Finally some good news for our bashed up lithium stocks (reports Barry FitzGerald on Stockhead).
It comes from a Reuters interview with German automaker Volkswagen on its push into electric vehicles, combined with analytical work, funnily enough, by one of the biggest local bears on the lithium sector, Macquarie.
VW board member Stefan Sommer told Reuters that the company would need 150 GWh of battery production in both Asia and Europe by 2025, and double that by 2030.
He said the plan was to buy more than $US56 billion of (lithium loaded) battery cells and that to date, it had identified Northvolt (Sweden), SKI (Korea), LG Chem (Korea), Samsung (Korea) and CATL (China) as “strategic partners.’’
Macquarie absorbed all that and noted that VW was indeed thinking big regarding batteries for EVs, or the “electromobility’’ push as Sommer put it.
It then did some number crunching.
“Assuming an average battery size of 60Kwh, that implies 5m units of full EVs by 2025 and 10m by 2030. Global EV sales were less than 2m units last year.’’
Sommer told Reuters that to achieve its bold ambition, VW would be retooling 16 factories to build EVs and will be producing 33 EV models under its Skoda, Audi, VW and Seat brands by mid-2023.
On the assumption that the Germans know what they are doing, VW is basically taking about a wall of demand coming for lithium from the EV sector.
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