As electric vehicle sales increase, Rajeev sees a cobalt deficit allowing the metal to take the lead over other battery metals.
Battery metals had a tough 2019 across the board, but many expect a turn in prices and sentiment by the second half of the year.
At this year’s Vancouver Resource Investment Conference (VRIC), the Investing News Network sat down with Sid Rajeev, head of research at Fundamental Research, to talk about the outlook for electric vehicles (EVs) and battery metals.
“Over the last decade battery costs are down 85 percent,” he said. “In the next three to four years battery costs will be priced comparable to conventional cars — that’s when demand for EVs will pick up.”
According to the analyst, about 5 million EVs were sold last year, with the consensus being that by 2030 that number will increase to 23 million.
“With that increase in demand, we expect demand for all battery metals will increase as well,” he added.
Speaking about which battery metal he is most bullish on, Rajeev said he expects cobalt to rise first.
“That’s because we are going to start to see a deficit sooner in cobalt, and then the rest of the raw materials,” he said, adding that he is interested in all battery metals in the long term.
Watch the video above for more of Rajeev’s thoughts on battery metals. You can also click here to see our full VRIC playlist on YouTube.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.