With demand for Electric Cars on the ascendency, FinTrek Capital (Hong Kong) Co., Limited today has predicted that lithium miners and battery producers are set to see their stock rise rapidly in the near future.

Sales of electric cars have surged in Europe and China, boosting the outlook for the battery industry. The world’s largest carmakers have pledged to spend billions developing new models. Meanwhile, the EU said last year it might ban petrol and diesel cars by 2035. Prices for lithium carbonate, a key material for electric car batteries, have almost doubled over the past year.

“We believe that a transformational bull market is underway for specialty metals, as the green revolution gains pace and the ‘green recovery’ from the Covid-19 crisis offers the sector a boost from stimulus and regulation,” said FinTrek Capital (Hong Kong) Co., Limited. The lithium market faced the risks of supply lagging behind demand over the next couple of years because new mining projects could face delays. That could limit carmakers’ ability to meet their ambitious targets for EVs.

The metal’s price has surged fivefold in the past year, reflecting mounting worries about availability. For years, batteries and EVs have become cheaper to make as the technology improved and production stepped up. But now there’s a risk that rising costs of raw materials – and lithium in particular – could hobble the transition just as momentum picks up. The stakes are high for carmakers that are spending billions of dollars betting on a battery-powered future. Mining companies and governments are responding with ambitious plans to boost production. But demand is growing at such a breath-taking pace that it’s not clear whether it will be enough.

For one thing, demand for this fast-growing metal in the raw materials market continues to surge now. Despite it being among the lightest of all metals, lithium plays a crucial role in the automotive industry today. Namely, this is thanks to its role as a key component in electric vehicle (EV) batteries. By extension, all this would see lithium stocks potentially being pick-and-shovel plays on the EV industry. After considering all this, it is no wonder that investors are eyeing the top lithium providers on the market now.

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Company Name: FinTrek Capital (Hong Kong) Co., Limited
Contact Person: Jenny Chu (International Press Officer)
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Country: HongKong
Website: https://www.fintrekcaphk.com