BlackEarth rockets 25pc, ASX lithium stocks on the cusp of EV revolution
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The EBA was established by the European Comission in 2017, and has become the leading industry group focused on the growing electric vehicles (EV) and battery markets.
The purpose of the Alliance is to ensure that Europe transitions smoothly into EVs by creating a competitive battery cell manufacturing value chain in the continent. Members include Tesla, Ford, BMW, Bosch, and Volvo Cars, amongst others.
BlackEarth believes that its association with the EBA will yield significant benefits in developing its graphite supply chain business strategy.
With the new membership, BlackEarth and Luxcarbon together plan to provide certain EBA members with downstream processed products for confirmation of their suitability for the EV market.
In a major deal struck in early February, BlackEarth signed a MOU with Urbix Resources Inc, USA. In that deal, BlackEarth will supply graphite concentrate to Urbix’s processing facility in Arizona, which is currently under construction.
The facility is said to be able to purify up to 24,000 tonnes of concentrate per year. Upon the facility’s completion, the two companies have proposed a joint venture to build a processing plant together either in Madagascar or Western Australia for the production of purified graphite.
In order to fulfil its side of the deal, BlackEarth signed a graphite supply and marketing deal with Luxcarbon GmbH – one of Germany’s major suppliers of graphite and carbon products. Under the terms, Luxacarbon will supply BlackEarth up to 25,000 tonnes of graphite concenrates per annum, which will then be used to assist Urbix in completing its plant development.
Data from Benchmark’s Lithium ion Battery Database shows battery demand in Europe – the second biggest market behind China — is set to increase at an annualised rate of 40.1 per cent between 2020 and 2025.
Stockhead has compiled a list of manganese, lithium, cobalt, nickel, rare earths and copper stocks on the ASX that will play a major part in the coming revolution.
Here’s a table of how each of those stocks has performed.
For those keen on building a portfolio focusing on lithium stocks, we’ve also provided a rundown of 8 ASX lithium stocks.
As for BlackEarth, its share price has skyrocketed by 370% over the past year.