The United States is losing the global battery arms race to China, with significant potential energy security consequences
Investors want exposure to companies that are involved in the production and distribution of battery metals, particularly with electric vehicles underpinning demand.
In an effort to ensure an adequate supply of critical minerals, the U.S. Department of the Interior has recently intensified its efforts to work with industry and other stakeholders to avoid minerals shortages or supply disruptions.
Many of the same uncertainties that persist in the oil market will remain true for copper and lithium, both of which will see major demand growth as a result of the transition to autonomous vehicles.
The ramp-up of battery production, combined with the rollout of a growing number of new EV models, ensures strong demand for lithium in the years ahead.
If electric vehicles need cost and performance parity with conventional vehicles to compete, it only means one thing: We need better batteries.