High Voltage: Only the strongest carmakers will sur(thr)ive the EV revolution

Mining Reuben Adams
asx mining news

Pic: Bloomberg Creative / Bloomberg Creative Photos via Getty Images

Each week our High Voltage column wraps all the news driving ASX battery metals stocks with exposure to lithium, cobalt, graphite, manganese and vanadium.

INDUSTRY FOCUS

The ‘Immortals’ of car-making are scrambling to grab future market share (or survive, at the very least) amidst a period of profound industry transformation.

The world’s #1, Volkswagen, doesn’t want to rely solely on suppliers like Northvolt, LG Chem or Panasonic for batteries – it wants to develop and build its own.

Last week, VW opened a €100 ($162m) million pilot line for small-series battery cell production in Salzgitter, Germany.

About 300 experts will be involved in developing, testing and piloting innovative manufacturing technologies for the production of lithium-ion batteries, it says.

The carmaker is also investing a lazy €900 million ($1.46 billion) into its 50/50 JV with Swedish battery producer Northvolt. Construction of a 16-gigawatt hour battery cell factory and battery recycling plant in Salzgitter is set to start in 2020.

“The car of the future is electric,” says VW boss Herbert Diess.

“That is why, over the next five years, we are also undertaking massive investments to amass know-how in developing and producing battery cells and entering into partnerships, thereby making our contribution to the successful transformation of Germany’s automotive industry.”

It’s all part of the “electric offensive”, says VW, the most ambitious of its peers when it comes to the EV rollout.

If if sounds like war, that’s because it is. Only the strongest survive.

Just ask high profile Chinese EV start-up NIO, which is currently haemorrhaging cash and market cap at an impressive rate. If NIO doesn’t fall over, there will certainly be others that do.

Tesla seems to be doing ok, though (sucks to be you, short sellers).

READ: Elon Musk tells employees Tesla has ‘a shot’ at delivering a record 100,000 vehicles this quarter

Then there’s Honda – #7 in the world – which will drop diesel engines from its European portfolio in favour of EVs as early as 2021, according to Reuters.

Toyota and Subaru – the #2 and #10 biggest carmakers in the world – have a bond that goes back 15 years. That alliance is ramping up as EVs and autonomous driving draw closer to ubiquity.

A new deal announced last week aims to make cars “beyond what either company has been able to achieve thus far”, Toyota says. Exciting times.

SMALL CAP SPOTLIGHT

Cobalt play Broken Hill Prospecting (ASX:BPL) acquired a rare earths project in Arizona and punters loved it, sending the stock up 45 per cent for the week.

“The 100 per cent acquisition of the La Paz [project] not only establishes our entry into the lucrative US rare-earth market but also secures BPL as the only listed ASX company with exposure to this market,” chief exec Trangie Johnston says.

“A very enviable position to be in, given the US Federal & Pentagon mandates to secure supply of strategic technology metals.”

So, we know a decent purchase can put rockets under a company’s share price. For lithium exploration-battery tech play Hipo Resources (ASX:HIP) a possible acquisition has the same effect.

There had been nothing – literally – for Hipo shareholders to get excited about between a late July quarterly update and last week’s Annual Report.

It was all tumbleweeds and dead air until chairman Maurice Feilich mentioned ‘potential acquisition opportunities’. The micro-cap stock shot up 20 per cent for the week.

“Characteristics of these projects include low upfront capex and acquisition cost, located in favourable mining jurisdictions which now includes Australia, and coming with experienced technical personnel,” he says.

“At this stage, due diligence is ongoing and no decision to progress with these opportunities has been made.”

The Archer Exploration (ASX:AXE) chart was looking pretty healthy even before the ‘quantum computing/health tech/mineral exploration’ play found space in its jam-packed portfolio for a new kaolin clay project.

Kaolin is an aluminous clay used to create high purity alumina (HPA), which is in demand because it helps stop lithium-ion batteries from catching fire.

Last week, Archer received a nice 19 per cent bump after it identified halloysite at its Eyre Peninsula HPA project.

Halloysite is the ‘Holy Grail’ of aluminous clay – the same stuff that makes neighbouring kaolin play Andromeda (ASX:AND) and its Poochera project so popular among investors.

The Eyre Peninsula project is still early stages, but this is definitely one to keep an eye on.

READ: Andromeda’s success sparks a new high purity alumina rush

 

Here’s a table of ASX battery metal stocks with exposure to lithium, cobalt, graphite, manganese and vanadium>>>

Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:

Code Name Price [ Monday intraday] 1 Week Total Return % 1 Year Total Return Market Cap
BPL BROKEN HILL PROSPECTING 0.032 45 -30 $ 4,288,618.50
DTM DART MINING 0.008 33 14 $ 8,139,009.00
IDA INDIANA RESOURCES 0.03 30 -42 $ 4,440,441.00
DHR DARK HORSE RESOURCES 0.005 25 -38 $ 10,252,531.00
HIP HIPO RESOURCES 0.012 20 -33 $ 4,638,125.50
NWC NEW WORLD COBALT 0.024 20 -53 $ 18,540,776.00
LML LINCOLN MINERALS 0.006 20 -25 $ 4,024,885.75
AXE ARCHER EXPLORATION 0.15 19 41 $ 29,563,768.00
INR IONEER 0.205 18 -33 $ 287,621,792.00
E25 ELEMENT 25 0.205 17 14 $ 18,840,992.00
SRN SUREFIRE RESOURCES 0.013 17 40 $ 6,037,843.50
FGR FIRST GRAPHENE 0.205 17 35 $ 97,316,848.00
CZR COZIRON RESOURCES 0.01 11 -38 $ 18,747,462.00
CXO CORE LITHIUM 0.04 11 -15 $ 30,770,792.00
SVM SOVEREIGN METALS 0.097 10 14 $ 34,131,000.00
TKL TRAKA RESOURCES 0.011 10 -69 $ 4,405,092.50
KTA KRAKATOA RESOURCES 0.026 9 -17 $ 4,050,000.00
HRZ HORIZON MINERALS 0.135 8 -13 $ 55,636,776.00
KAI KAIROS MINERALS 0.014 8 -56 $ 11,931,820.00
RMX RED MOUNTAIN MINING 0.007 8 0 $ 5,446,257.50
FEL FE 0.015 7 -12 $ 7,330,524.50
TMT TECHNOLOGY METALS AUSTRALIA 0.185 6 -68 $ 15,759,750.00
INF INFINITY LITHIUM 0.074 6 14 $ 15,446,776.00
LTR LIONTOWN RESOURCES 0.097 5 280 $ 166,079,280.00
SO4 SALT LAKE POTASH 0.895 5 95 $ 222,708,672.00
PIO PIONEER RESOURCES 0.02 5 5 $ 31,683,934.00
VML VITAL METALS 0.01 5 43 $ 17,426,112.00
MQR MARQUEE RESOURCES 0.082 5 -50 $ 5,216,028.50
LKE LAKE RESOURCES 0.042 5 -51 $ 21,989,414.00
CHN CHALICE GOLD MINES 0.22 5 110 $ 58,924,648.00
KSN KINGSTON RESOURCES 0.021 5 -11 $ 37,084,332.00
MEI METEORIC RESOURCES 0.06 4 269 $ 57,167,112.00
LI3 LITHIUM CONSOLIDATED 0.05 2 -37 $ 6,202,809.50
POS POSEIDON NICKEL 0.054 2 -1 $ 137,420,496.00
LPI LITHIUM POWER INTERNATIONAL 0.33 2 22 $ 87,942,160.00
GLN GALAN LITHIUM 0.205 1 -26 $ 28,791,290.00
TLG TALGA RESOURCES 0.42 1 -10 $ 93,305,712.00
SEI SPECIALITY METALS 0.049 0 214 $ 48,153,752.00
SYR SYRAH RESOURCES 0.505 0 -77 $ 214,954,688.00
MRR MINREX RESOURCES 0.01 0 -67 $ 958,777.25
AZI ALTA ZINC 0.005 0 -9 $ 9,149,422.00
PUR PURSUIT MINERALS 0.011 0 -79 $ 3,053,697.75
EUC EUROPEAN COBALT 0.033 0 -37 $ 25,136,012.00
PM1 PURE MINERALS 0.018 0 31 $ 8,481,752.00
MTH MITHRIL RESOURCES 0.006 0 -35 $ 2,942,335.25
CHK COHIBA MINERALS 0.014 0 86 $ 8,639,985.00
PNN PEPINNINI LITHIUM 0.002 0 -58 $ 3,095,029.50
HWK HAWKSTONE MINING 0.015 0 -52 $ 9,664,452.00
ARE ARGONAUT RESOURCES 0.005 0 -77 $ 7,771,903.00
BOA BOADICEA RESOURCES 0.2 0 111 $ 11,119,149.00
AYR ALLOY RESOURCES 0.0025 0 -38 $ 4,233,194.00
ZNC ZENITH MINERALS 0.063 0 -45 $ 13,426,226.00
KDR KIDMAN RESOURCES 1.9 0 79 $ 776,185,280.00
GPP GREENPOWER ENERGY 0.001 0 -75 $ 2,302,245.25
4CE FORCE COMMODITIES 0.018 0 -50 $ 8,630,131.00
AEE AURA ENERGY 0.009 0 -57 $ 13,009,048.00
SUH SOUTHERN HEMISPHERE MINING 0.024 0 -63 $ 2,123,267.25
RNU RENASCOR RESOURCES 0.015 0 -17 $ 18,454,790.00
LRS LATIN RESOURCES 0.018 0 -86 $ 2,802,584.25
PGM PLATINA RESOURCES 0.029 0 -68 $ 7,659,661.00
SI6 SIX SIGMA METALS 0.004 0 -56 $ 2,580,012.50
CRL COMET RESOURCES 0.024 0 -20 $ 6,937,500.00
MTC METALSTECH 0.018 0 -75 $ 2,105,170.00
CUL CULLEN RESOURCES 0.015 0 -28 $ 2,541,972.50
BAT BATTERY MINERALS 0.008 0 -69 $ 11,862,824.00
SVD SCANDIVANADIUM 0.009 0 -64 $ 3,166,795.00
BAR BARRA RESOURCES 0.022 0 -45 $ 10,777,815.00
SYA SAYONA MINING 0.01 0 -71 $ 16,648,177.00
HXG HEXAGON RESOURCES 0.059 0 -59 $ 17,215,220.00
VMC VENUS METALS 0.18 0 -1 $ 22,057,802.00
MNS MAGNIS ENERGY TECHNOLOGIES 0.19 0 -43 $ 110,004,480.00
BDI BLINA MINERALS 0.001 0 0 $ 5,454,882.50
TAR TARUGA MINERALS 0.03 0 -59 $ 4,235,017.00
CAZ CAZALY RESOURCES 0.046 0 64 $ 16,267,324.00
MCT METALICITY 0.006 0 -63 $ 3,866,334.75
VRC VOLT RESOURCES 0.011 0 -55 $ 16,054,073.00
ASN ANSON RESOURCES 0.037 0 -53 $ 23,398,510.00
PAN PANORAMIC RESOURCES 0.31 0 -44 $ 173,824,896.00
RLC REEDY LAGOON 0.004 0 -60 $ 1,609,086.88
CGM COUGAR METALS 0.001 0 -75 $ 1,176,583.25
CLA CELSIUS RESOURCES 0.018 0 -87 $ 12,872,707.00
ORE OROCOBRE 2.54 -1 -39 $ 667,279,104.00
EMH EUROPEAN METALS 0.29 -2 -15 $ 43,734,580.00
MZZ MATADOR MINING 0.275 -2 -17 $ 25,651,290.00
LIT LITHIUM AUSTRALIA 0.045 -2 -59 $ 24,576,504.00
TON TRITON MINERALS 0.038 -3 -19 $ 35,231,248.00
COB COBALT BLUE 0.155 -3 -50 $ 23,234,890.00
AML AEON METALS 0.155 -3 -60 $ 97,740,112.00
KNL KIBARAN RESOURCES 0.092 -3 -58 $ 26,921,128.00
MLL MALI LITHIUM 0.078 -4 -72 $ 20,962,426.00
HAV HAVILAH RESOURCES 0.125 -4 -34 $ 27,281,132.00
AJM ALTURA MINING 0.072 -4 -69 $ 167,433,296.00
AVZ AVZ MINERALS 0.047 -4 -51 $ 108,294,976.00
NVA NOVA MINERALS 0.045 -4 67 $ 36,349,332.00
SRK STRIKE RESOURCES 0.045 -4 -17 $ 7,521,042.00
WML WOOMERA MINING 0.022 -4 -64 $ 3,088,715.25
JRV JERVOIS MINING 0.22 -4 -28 $ 137,951,024.00
KOR KORAB RESOURCES 0.021 -5 -30 $ 6,978,388.50
BUX BUXTON RESOURCES 0.095 -5 -42 $ 12,925,266.00
NMT NEOMETALS 0.18 -5 -24 $ 100,721,072.00
GXY GALAXY RESOURCES 1.1 -5 -57 $ 436,095,488.00
PLS PILBARA MINERALS 0.3225 -6 -64 $ 641,453,824.00
JMS JUPITER MINES 0.385 -6 24 $ 764,006,528.00
MIN MINERAL RESOURCES 13.11 -6 -14 $ 2,501,711,104.00
BYH BRYAH RESOURCES 0.075 -6 -29 $ 4,720,497.50
BSX BLACKSTONE MINERALS 0.15 -6 -17 $ 23,338,442.00
DEV DEVEX RESOURCES 0.089 -6 25 $ 11,974,552.00
TNG TNG 0.085 -7 -32 $ 94,461,792.00
ARL ARDEA RESOURCES 0.57 -7 -10 $ 62,321,980.00
NZC NZURI COPPER 0.275 -7 -16 $ 78,414,952.00
PLL PIEDMONT LITHIUM 0.094 -7 -41 $ 74,199,616.00
MLM METALLICA MINERALS 0.013 -7 -61 $ 4,212,616.50
WKT WALKABOUT RESOURCES 0.265 -7 73 $ 83,980,840.00
BKT BLACK ROCK MINING 0.065 -7 94 $ 39,843,256.00
AGY ARGOSY MINERALS 0.073 -8 -71 $ 76,162,664.00
AVL AUSTRALIAN VANADIUM 0.012 -8 -77 $ 25,659,970.00
GPX GRAPHEX MINING 0.18 -8 -41 $ 19,122,590.00
OMH OM HOLDINGS 0.48 -8 -68 $ 321,301,152.00
PSC PROSPECT RESOURCES 0.11 -9 -65 $ 23,595,176.00
GED GOLDEN DEEPS 0.027 -9 -36 $ 6,854,956.00
VR8 VANADIUM RESOURCES 0.048 -9 -67 $ 16,902,118.00
AMD ARROW MINERALS 0.009 -10 -53 $ 7,597,246.50
CLQ CLEAN TEQ 0.31 -10 -43 $ 227,670,368.00
N27 NORTHERN COBALT 0.033 -11 -72 $ 2,244,333.50
LPD LEPIDICO 0.016 -11 -42 $ 70,378,696.00
DGR DGR GLOBAL 0.08 -11 -45 $ 49,054,552.00
MZN MARINDI METALS 0.085 -11 -80 $ 5,995,864.00
GBE GLOBE METALS AND MINING 0.018 -12 15 $ 7,454,758.00
JRL JINDALEE RESOURCES 0.22 -12 -20 $ 9,623,563.00
BSM BASS METALS 0.009 -13 -72 $ 19,669,122.00
IEC INTRA ENERGY 0.007 -13 -50 $ 2,714,068.25
LCD LATITUDE CONSOLIDATED 0.014 -13 -36 $ 4,127,685.00
AUZ AUSTRALIAN MINES 0.026 -14 -43 $ 86,118,560.00
GME GME RESOURCES 0.06 -14 -43 $ 30,374,576.00
CFE CAPE LAMBERT RESOURCES 0.005 -17 -77 $ 5,332,369.50
NXE NEW ENERGY MINERALS 0.02 -17 -78 $ 3,057,908.75
RIE RIEDEL RESOURCES 0.01 -17 -67 $ 4,180,697.00
HNR HANNANS 0.01 -17 -9 $ 21,867,500.00
THR THOR MINING 0.01 -17 -64 $ 8,216,468.50
BEM BLACKEARTH MINERALS 0.049 -17 -62 $ 6,251,053.50
WCN WHITE CLIFF MINERALS 0.0065 -19 -65 $ 3,057,274.25
MTB MOUNT BURGESS MINING 0.004 -20 -33 $ 2,080,517.63
CNJ CONICO 0.008 -20 -69 $ 3,459,584.00
ANW AUS TIN MINING 0.003 -25 -87 $ 9,029,414.00
ADV ARDIDEN 0.003 -25 -67 $ 5,916,821.00
POW PROTEAN ENERGY 0.006 -25 -78 $ 1,868,623.50
SBR SABRE RESOURCES 0.003 -25 -73 $ 1,901,534.75
CZN CORAZON MINING 0.0025 -29 -64 $ 6,115,082.00
PSM PENINSULA MINES 0.002 -33 -71 $ 3,038,616.25
MLS METALS AUSTRALIA 0.0025 -33 -50 $ 5,854,395.50
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