• New Chinese EV models are set to hit the market
  • EV car sales will make up more than 35%of new car sales in Australia by 2030, Boston Consulting Group says
  • Piedmont Lithium and Tesla amend offtake agreement to spot market pricing

 All your ASX lithium news for Wednesday, January 4.

 

High prices and lack of options have meant Australians have been sluggish in our uptake of EVs, with only a handful of cars are currently priced under $50,000.

It now looks like more than a dozen new EV models — some below the $50,000 mark — are coming into Australia in 2023, including  EVs from China’s largest carmaker and a major battery manufacturer BYD and British manufacturer MG (backed by Chinese state-owned car company SAIC Motor).

This would be some healthy competition to the Tesla-dominant Aussie market, with the Model 3 (around $65,000) and Model Y (around $75,000) currently accounting for half of the EV purchases.

“We have committed to at least two models coming on to the Australian market every year,” EVDirect (BYD’s exclusive distributor for electric passenger vehicles in Australia) CEO Luke Todd said.

“We do anticipate prices [will] become a little bit more competitive in the coming years as there’s more and more [electric] vehicles on the road.”

EVDirect is bringing a light SUV (BYD Dolphin) and a sedan (BYD Seal) onto the market in early 2023 – and the Dolphin is expected to be cheaper than the currently available model, BYD Atto 3, which is priced around $49,000.

Meanwhile, MG’s current model ZS EV costs around $45,000, probably the lowest-priced model on the market and the company is launching a new model, MG4, in early 2023.

There’s also rumours that Chinese auto giant Great Wall Motors could launch the Ora EV brand in Australia as part of its wider plans to launch more than 50 energy efficient vehicles by 2025.

Chery plans to release a plug-in hybrid by 2023, and potential the Omoda 5 compact SUV next year and Geely is reportedly hunting for a distribution partner in Australia and has the intention of setting up shop here in 2023-24.

Then there’s LDV, who’s Australia GM Dinesh Chippappa says demand for the electric ute model eT60 has already outstripped supply – despite its $92,990 starting price. 

LDV’s electric ute. Pic: via LDV Automotive Australia

Forecasts from independent consulting firm Boston Consulting Group (BCG) suggest EV sales will increase by 30 per cent in 2023, a jump from about 100,000 this year to 150,000 next year.

It also expects that EV car sales will make up more than 35%of new car sales in Australia by 2030. 

 

Here’s how ASX lithium stocks were tracking today:

Wordpress Table Plugin

A solid 54 stocks were in the green, 59 were flat and 24 were red.

 

Who has news out today? 

PIEDMONT LITHIUM (ASX:PLL)

Piedmont and Tesla have mutually agreed to amend their previous offtake agreement with PPL to deliver around 125,000 metric tons of SC6 to Tesla beginning in H2 2023 through the end of 2025.

Previously this was a fixed price agreement but now the SC6 pricing will be determined by market prices at the time of each shipment. 

“This agreement helps to ensure that these critical resources from Quebec remain in North America and support the mission of the Inflation Reduction Act to bolster the U.S. supply chain, the clean energy economy, and global decarbonization,” Piedmont president and CEO Keith Phillips said.

Spodumene concentrate production is expected to restart at North American Lithium (NAL) in H1 2023, with first commercial shipments expected to begin in Q3 2023. 

 

PLL share price today:

 

Read MoreLithiumLithium NewsLithium Stocks

Featured Companies

You might be interested in