High Voltage: Are sky-high fuel prices pushing up demand for electric vehicles?
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Our High Voltage column wraps all the news driving ASX stocks with exposure to lithium, cobalt, graphite, nickel, rare earths, manganese, magnesium, and vanadium.
Are sky-high fuel prices pushing up demand for EVs?
It’s all hearsay and conjecture right now but yes, it certainly looks that way.
EVs are more expensive to buy but far less expensive to run.
Average cost to fill various ICE vehicles in CA with gas right now:
• Ford F-150: $140
• Toyota Rav4: $78
• Honda Accord: $75
Average cost to charge a Tesla Model Y in CA (at $0.25 per kw): $19 pic.twitter.com/XfU7ZfJA1s
— Sawyer Merritt 📈🚀 (@SawyerMerritt) March 8, 2022
In New Zealand, car dealership EV City in Christchurch normally sells 60 EVs throughout a month. They recently sold 30 in one weekend, according to Stuff.
And from early March, UK consumers were conducting 27% more advert views for new EVs than they were the previous week, now accounting for 20% of all advert views, according to Auto Trader.
That’s despite the average new EV costing 35% more than an internal combustion engine (ICE) car.
A report from Carbar found 34% of Aussies are considering buying an electric vehicle in the next two years to avoid the petrol station.
Even 2GB – talkback radio of choice for Sydney’s unwashed masses — is coming around.
Tech expert Trevor Long told Ben Fordham to charge an electric vehicle at home every night would cost $10-$12 a week.
“You’re basically topping up every day with your off-peak electricity overnight … it’s probably 20 per cent of the cost of filling up a petrol car.”
So — will high fuel prices or escalating cost of battery raw materials (and hence EVs) worry car buyers more?
According to our cost model, the price of a kWh of China-made NMC 811 increases from $124 to $228 if you have to buy nickel at $100,000 ton (the LME high reached yesterday). More than $100/kWh was just added to the price of batteries.
— Sam Jaffe (@samjaffe) March 8, 2022
Only the hard sales data will tell us for sure. Stay tuned.
Here’s how a basket of ASX stocks with exposure to lithium, cobalt, graphite, nickel, rare earths, magnesium, manganese, and vanadium is performing>>>
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What a coup.
Julian Hanna, co-founder and managing director of nickel miner Western Areas (ASX:WSA), will join explorer SGQ as general manager for growth and development.
During his 12-year tenure, WSA grew from a $6m IPO to Australia’s No. 1 independent nickel sulphide producer.
In 2013, he joined explorer MOD Resources as managing director. Under his leadership, MOD established a substantial exploration holding in the underexplored Kalahari Copper Belt in Botswana and delivered exploration success through the discovery of the significant T3 and A4 copper deposits.
Sandfire Resources (ASX:SFR) then acquired MOD in 2019 in a $167 million takeover.
Hanna says SGQ has a quality portfolio of projects with similarities to other opportunities he has been involved with.
“The work already completed at the [flagship] Mt Alexander and Paterson Projects underscores their compelling exploration potential,” he says.
“I am excited about returning to a highly promising nickel and base metals exploration story in Western Australia and look forward to contributing to the growth of St George.”
The mini cap gold explorer is pivoting to lithium, like everyone else.
Late last week it announced the proposed acquisition of four lithium-prospective tenements in the Pilbara from private co EV Minerals in an all-share deal.
‘Tambourah’, the project RGL seems most excited about, has multiple outcropping pegmatites containing lepidolite and potentially spodumene, as confirmed by recent reconnaissance mapping.
“The exciting thing about these pegmatites are that they remain untested by drilling as historical exploration focused on gold and copper albeit never followed up,” RGL CEO Julian Ford says.
“We are excited to be the first company to focus on the lithium potential and look forward to getting on the ground to refine the established targets.”
Another explorer branches out into lithium.
RAS applied for three tenements prospective for lithium in the Northern Territory, known as the Litchfield and Daly River lithium projects.
Both projects are near Core Lithium’s (ASX:CXO) Finnis project, and Ragusa says Daly River is in the same geological setting.
Explorer MOH has identified three high-quality nickel targets at the ‘Silver Swan’ project in WA called Omrah, Wise and Dukes.
Diamond drilling has now kicked off at ‘Omrah’, which sits on an untested electromagnetic (EM) conductor ~405m deep.
The results of a shallower 3,000m, 14-hole drilling program at Omrah and Wise completed in January are also pending.