The people of UBS has done a fantastic study analyzing the components of one of the best selling electric cars in the Chevy Bolt and the changes that an electric car has in consumption of raw materials compared to a “traditional” equivalent model such as VW Golf and what impact can have on the different markets if within a few years 100% of the cars that are manufactured are electric, something that can happen there in 2025 when it is expected to make an electric car has a cost similar to the one you have today making a traditional car.
As for consumption of raw materials, it seems that the electric car will trigger the needs of Lithium + 2.898%, Cobalt + 1.928%, rare metals + 755%, graphite + 524% and nickel + 105%.
The change will not only affect the consumption of raw materials but will also impact on chemical companies, or automotive component manufacturers. According to the people of UBS these will be the potential losers and winners of a change in the automobile industry that can revolutionize the sector:
Obviously predicting the future is not an easy task and giving as valid as an investment thesis those who today seem the potential winners and losers of a profound change in an industry that is going to occur over the next 8 years is an exercise in high risk.