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China´s transportation transformation

In an era where more people are recognising the need to lead climate-friendly, environmentally positive lives, electric vehicles are being adopted rapidly:…

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This article was originally published by BNP Paribas Asset Managment Blog ( Investor's Corner)

In an era where more
people are recognising the need to lead climate-friendly, environmentally
positive lives, electric vehicles are being adopted rapidly: There are now 12
million passenger EVs on the road worldwide, one million commercial EVs and
over 260 million electric two and three-wheelers, [1] write
Ulrik Fugmann and Edward Lees of the Environmental Strategies Group.  

The shift to EVs is accelerating thanks to a number of
factors: 

  •  Government support
  •  Technological improvements
  •  Falling
    battery costs
  •  More
    charging infrastructure
  •  Commitments from carmakers. 

In fact, BloombergNEF predicts passenger EV sales should
reach 14 million by 2025 [2] before accelerating even faster in the rest of the
decade.

China is prioritising the transformation of transportation
and the pace of EV adoption by placing it at the centre of several government
initiatives. EVs were named as one of the key industries of its ‘Made in China
2025’ programme and the electrification of transport is a core component in its
drive to achieve carbon neutrality by 2060.

While the government is aiming for new energy vehicles [3]
(NEVs) to make up 20% of new car sales by 2025, we expect penetration to be
faster thanks to favourable government policies and their growing popularity
among consumers, more competitive pricing, the introduction of new features and
the rollout of more charging stations.

In fact, this faster-than-expected transition is starting to
show up in the latest data: NEVs reached 20% of new car sales this August. [4] 

Favourable government policies

NEV sales in China have been growing exponentially since
2009, when the government introduced subsidies and its Ten Cities, Thousand Vehicles pilot programme.

However, as the industry matures and the cost of EVs continues
to fall, the government is starting to phase out subsidies by reducing the
amount by 10% a year. It has shifted its focus to EV producers. A dual-credit
policy requires carmakers to meet an annual credit target by selling a certain
number of EVs. This target becomes more stringent each year and carmakers that
do not produce enough EVs and do not increase their average fuel economy levels
will be forced to buy credits from those that have achieved a surplus.

Additional support for EV adoption includes mandating EVs as
the preferred choice for government procurement, exempting them from vehicle
purchase tax until 2022 and offering preferential access to licence plates in a
number of cities.

Overcoming the barriers

Advances in battery technology and economies of scale has
seen the cost of batteries fall significantly recently – the price of
lithium-ion batteries has fallen by 89% since 2010 [5]. The lower cost has
enabled carmakers to launch EVs at a more competitive price and the range
capabilities of these models has increased.

The increased number of charging stations is another pivotal
step to ease range anxiety and supports EV adoption. According to BNEF, there
were 884 400 public charging connectors as of July 2021. That is equivalent to
five EVs per connector. This compares favourably to other countries.

Even so, charging speeds and reliability remain an issue as
many public chargers use slow AC and some connectors are not operational.
Carmakers are doing their bit to address this issue, for example, through a
battery swapping EV model or expanding their own fast-charging networks.

An additional attraction of EVs is that they are at the
forefront of new technologies. The Chinese government supports the development
of autonomous driving and aims to have 50% of new cars equipped with Level 2
and Level 3 automation by 2025 and 70% by 2030. [6]

Increased competition as demand for EVs expands

There will be no ignoring the electric car revolution in the
coming years. While China has been driving EV adoption, demand is expected to
spread across the world, and with it, competition.

The supply and choice of electric or hybrid models is set to
expand from around 330 currently to over 500 by 2025. [7] A number of incumbent
carmakers are looking to enter the EV market alongside more new entrants,
particularly among the technology giants. This should inject around USD 330
billion of investment into the sector by 2025. [8] 

In such a changing investment environment, identifying those
companies with a strong brand presence, differentiated offerings in terms of
both hardware and software to serve the target audience and a secure upstream
supply chain will be key.

The Environmental Strategies Group is using its
technological knowledge and understanding of this rapidly changing market to
uncover EV businesses set to win this long-term race and identify those that
will be left by the roadside.

[1] https://about.bnef.com/electric-vehicle-outlook/  

[2] https://about.bnef.com/electric-vehicle-outlook/

[3] NEV include battery electric vehicles, plug-in hybrid
electric vehicles and hydrogen fuel cell vehicles  

[4] China Passenger Association

[5] https://about.newenergyfinance.com/electric-vehicle-outlook/  

[6] https://www.caixinglobal.com/2020-11-12/china-wants-self-driving-tech-in-half-of-new-cars-by-2025-101626619.html  

[7] https://www.ft.com/content/fb4d1d64-5d90-4e27-b77f-6e221bc02696?segmentId=b0d7e653-3467-12ab-c0f0-77e4424cdb4c  

[8] https://www.alixpartners.com/media-center/press-releases/2021-alixpartners-global-automotive-outlook/


Any views expressed
here are those of the author as of the date of publication, are based on
available information, and are subject to change without notice. Individual
portfolio management teams may hold different views and may take different
investment decisions for different clients. This document does not constitute
investment advice.

Companies are
mentioned for illustrative purposes only. This is not intended as solicitation
of the purchase of securities and does not constitute any investment advice or
recommendation. The value of investments and the income they generate may go
down as well as up and it is possible that investors will not recover their
initial outlay. Past performance is no guarantee for future returns.
 

Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher than average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity, or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.

Writen by Edward Lees. The post China´s transportation transformation appeared first on Investors’ Corner – The official blog of BNP Paribas Asset Management, the sustainable investor for a changing world.

Author: Edward Lees

Energy & Critical Metals

EV Nickel starts trading on TSX Venture Exchange

  TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the…

 

TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the TSX Venture Exchange and has begun trading on the Exchange.

The closing of the IPO, scheduled for December 2, 2021, was expected to have gross proceeds of $5,440,292 for a total of 1,442,200 flow-through (FT) common shares at 86 cents per FT common share and of 5.6 million units at 75 cents per unit. The company has 30,355,667 common shares issued and outstanding

EV Nickel, classified as a Tier 2 issuer, is a Canadian nickel exploration company, focused on the Shaw Dome area, south of Timmins, Ontario. The Shaw Dome area is home to its Langmuir project, which includes W4, the basis of a 2010 historical estimate of 677,000 tonnes at 1% nickel for approximately 15 million pounds of Class 1 nickel.

EV Nickel’s objective is to grow and advance a nickel business, targeting the growing demand for Class 1 nickel from the electric vehicle battery sector. EV Nickel has almost 9,100 hectares to explore across the Shaw Dome area and has identified 30 km of additional strike length.

“We are excited to get out into the public markets and begin telling the world about our wonderful assets, on the Shaw Dome, just south of Timmins,” said Sean Samson, president and CEO. “The world needs more nickel and especially the type of high-grade, clean nickel that we plan to build our business around. Decarbonization is the challenge of a lifetime and we plan to source the material that will help the EV [electric vehicle] companies grow and help address that challenge.”





Author: Editor

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Base Metals

Vision Lithium to Buy The Cadillac Canadian Lithium Property

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada.  Combined with an…

Vision Lithium Property Portfolio
Cadillac lithium property located approximately 40 km west of Val-d’Or. Source: Vision Lithium

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada. 

Combined with an additional 105 stakes claimed by the company, the group of claims will be collectively referred to as The Cadillac lithium property.  

Details of the agreement include the vendor groups receiving an aggregate cash consideration of $102,427.92 from Vision Lithium, as well as ​​issue a total of 4,300,000 common shares of the company. The shares are not divided evenly, with 1.5 million each going to the CMH Group and Fancamp, the Leblanc-Lavoie Group will receive 1 million and 300,000 Shares will go to the Tremblay Group. The company will also pay each vendor group a 2% net smelter return royalty on the claims. 

President & CEO of Vision Lithium Yves Rougerie commented in a press release, “The Cadillac lithium project is an exciting addition to our growing portfolio of lithium properties. The Property is located 10 km south of the Trans-Canada highway and only metres from the secondary road, ensuring easy access for logistics, materials and qualified manpower.”

The claims acquired by Vision Lithium combined with the additional 105 claims staked, means the property holds a total of 320 claims covering 18,378 hectares. The property is easily accessible year-round in an area with well-maintained roads. This is especially helpful since Quebec can become covered in snow for multiple months of the year, and established infrastructure gives the company a head start.

There are also at least 4 pegmatite dikes which are spaced approximately 100 metres apart and traced for at least 300 metres along on the property. 

Rougerie continued “The property hosts a cluster of close-spaced parallel lithium-bearing dikes. Spodumene has been observed in the outcropping dikes and we believe there are likely more dikes in the cluster. The dikes have seen surprisingly little historical exploration with only a handful of samples and no drilling to date.” 

High Potential for Additional Lithium Discoveries

Lithium crystals have been observed on all four dikes of the property, with even a few large crystals visible. 

The property is located approximately 10 km south of Cadillac, a historic mining town, and about halfway between the major mining centres of Rouyn-Noranda and Val-d’Or in Quebec. 

“We believe the potential for additional lithium discoveries within the main cluster area is excellent and the larger property also has tremendous upside potential for discovery. The entire area acquired and staked is very large at almost 200 square kilometres. We plan to aggressively explore the Property over the winter by drilling the main cluster of dikes and to plan and complete field work next summer over the large tract of land,” Rougerie said. 

There are a number of closing conditions and post-closing obligations for the company until the transaction is officially completed. This includes the execution of certain deeds and instruments of conveyance, and the approval of joining the TSX Venture Exchange. Completion of the transaction is expected to be finished in the coming days. 

Vision Lithium focuses on exploring and developing mineral assets such as lithium and copper in different parts of Canada. Other than the claims they have just received in the recent transaction, the company has operations in Manitoba, and multiple properties in New Brunswick and Quebec. The first drill program at the company’s Dome Lemieux copper property in Quebec has commenced. Vision has also recently completed the Red-Brook copper and zinc drill program in New Brunswick. 

Vision Lithium is focused on developing their Sirmac lithium project in Quebec which is a hard rock source of lithium. Lithium can either come from hard rock sources or brines, and about 50% of each make up the world’s lithium compound production. Both sources can produce battery-grade lithium, but the extraction process is very different. The company plans on using existing methods to extract lithium for the battery market. This is a key area for the company as demand for battery materials is soaring in the middle of a global energy transition. 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

The post Vision Lithium to Buy The Cadillac Canadian Lithium Property appeared first on MiningFeeds.





Author: Matthew Evanoff

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Energy & Critical Metals

NIO Stock Alert: One Big Reason EV Maker Nio Is Plunging Today

As all eyes turn to Chinese stocks today, Chinese electric vehicle (EV) producer Nio (NYSE:NIO) is in the spotlight. Indeed, as NIO stock slides, investors…

As all eyes turn to Chinese stocks today, Chinese electric vehicle (EV) producer Nio (NYSE:NIO) is in the spotlight. Indeed, as NIO stock slides, investors are left to ponder the news coming out of the Securities and Exchange Commission (SEC) as well as what it might mean for the EV industry as a whole.

Source: Sundry Photography / Shutterstock.com

So, what is this big news?

Chinese stocks that trade on major U.S. exchanges have been sliding since markets opened this morning, a direct result of the recent news from the SEC. The regulatory agency has announced that it will be implementing a new law that will require all international companies that trade on the NYSE or Nasdaq to turn over their financial books to U.S. regulators upon request or face being delisted.

One major stock has already delisted and others seems poised to follow. These events have cast a cloud of uncertainty over markets, and investors have many questions about their Chinese investments. Investors have a lot to think about as NIO stock falls, in terms of the future of both the company and its industry.

What’s Happening With NIO Stock

Like most China-based companies that trade in the U.S., NIO stock has been falling all day. As of this writing, it is down by almost 9%. Despite an earlier uptick, it isn’t showing signs of rebounding. The stock has been declining since December began, but yesterday’s news has caused it to plunge, pulling it into the red by more than 20% for the month. It’s clear that since news broke of Chinese ride-sharing giant Didi Global (NYSE:DIDI) making the move to delist from the NYSE, investors are nervous, bracing for a selloff.

Nio isn’t the only Chinese EV manufacturer that hasn’t been enjoying the ride today. Its peers XPeng (NYSE:XPEV) and Li Auto (NASDAQ:LI) have seen worse declines. Both are down as of this writing, by 9% and 13%, respectively.

Why It Matters

While this news has sent Chinese stocks across many different sectors into a downward tailspin, there are other factors that are worth considering. Nio filed for an additional listing on a Hong Kong exchange in early 2021, but the decision was delayed for months, stretching into 2022 with little information provided by the company as to the reasons behind it. If the company was already planning to list in another market, this news from the SEC could prove the incentive it needs to delist in order to expedite the process. It’s hard to pinpoint exactly what this means for NIO stock.

Wall Street hates uncertainty. And since an important international company decided to comply with unprecedented orders from its government, uncertainty has reigned supreme. Nio’s incentive to delist is likely high, and if one industry leader makes a decision, others may follow. Adding to the turbulent market outlook is the fact that many Chinese business leaders haven’t said much since news broke of the SEC’s decision, leaving investors to wonder what the immediate future will look like.

The fact that Chinese EV stocks are slipping across the board indicates that this news is serious. The EV race, in which China’s companies have played a key role, has come to define investing in 2021 and looks set to continue into the new year. If such a prominent sector can feel the strain of this news, no industry is immune.

What It Means

The road ahead looks bumpy for all Chinese stocks that trade on U.S. markets, not just the EV sector. The emerging threat of the omicron variant was already casting doubt over markets, as investors braced for what will likely be known as the “omicron winter.” Now they have an even shorter-term concern to field.

With all this in mind, there are plenty of factors that contribute to a stock making the move to delist. We don’t know for sure what this news will mean for NIO stock, but it is certainly a name to watch as Chinese companies make decisions and trends start to develop.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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The post NIO Stock Alert: One Big Reason EV Maker Nio Is Plunging Today appeared first on InvestorPlace.

Author: Samuel O'Brient

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