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EV’s & Where to Invest for the next 10 years

JonGaltIII
edited June 2022 in Other Investing
If you believe that fossil fuel vehicles are on the way out and EVs are here to stay… what opportunities are out there as a solid risk/reward investment for the next 10 years? Everyone talks about lithium but could there be more important materials to focus on. This graphic shows the current elements in an EV: https://elements.visualcapitalist.com/evs-vs-gas-vehicles-what-are-cars-made-out-of/

Listen to educated people like Elon Musk and rare earth expert James Litinsky and you may start researching NICKEL and Graphene etc. The capital required to build out a mining operation for these materials is intensive. 10 years away to build out.

Nickel is on fire due to Russia and Ukraine conflict: https://www.cnbc.com/2022/03/08/nickel-price-surge-could-threaten-automakers-ev-plans.html

Glencorp GLNCY and VALE are dominant and according to Litinsky they will free cash flow themselves in 3 years. Perhaps they will be bought by an EV OEM. Musk has recently requested more mining investment.

Of course, the risk is the future battery chemistry. Will it always be lithium and nickel etc? Seems like a compelling case -these two stocks. Something to consider.

FWIW: GLNCY is up 45 percent in the last 52 weeks.

https://www.barrons.com/articles/buy-mining-stocks-growth-51631918714

Comments

  • BenWPBenWP
    Those are good ideas, @JonGaltill. It appears the ETF industry is thinking along the same lines. A quick search brought up WBAT and EVMT, the latter just launched in April. Given the uncertainty of what materials will be most in demand over a ten-year period, it seems a fund might be the ticket. EVMT is following in the steps of PDBC, by offering a K-1 free fund. I’m sure there are other related thematic funds out there that members may identify.
  • JonGaltIII
    @BenWP thanks for contributing. Appreciate the ideas and suggestion.
  • sma3
    Look at REMX and GEMT
    Focused on rare earths needed for a lot of technology ( and basically owned by China) and "green metals needed in EVs

    LIT has been around since 2010 and is more liquid and more transparent than EVMT

    Only 3% TSLA. A good thing, if you believe, as I do, that TSLA is controlled by a sociopath.
  • CrashCrash
    LEV single stock. Lion Electric. Saint-Jerome, Quebec, northwest of Montreal. Still operates at a loss. Electric vehicles, but not so much for individual retail consumers.

    At Barron's website, it gets 4 buys, 1 overweight, 4 holds by analysts. Will it EVER make a profit? It's a penny-stock, still--- at $5.34 USD.

    12 months: DOWN -74.65%. Bargain, or trap?
    https://thelionelectric.com/en
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