These days, electric vehicle stocks like Tesla (NASDAQ:TSLA) are all over the headlines. We consistently hear how governments all over the world want a greener future, full of EVs. Analysts tell us that by 2030, the world will see 125 million EVs on the road, as noted by CNBC. General Motors (NYSE:GM) wants to phase out sales of internal combustion engines by 2035.
According to NBC News, “The auto industry is shifting from internal combustion technology to emissions-free battery and hydrogen powertrains. Several traditional brands have also committed to a complete transition, with Bentley recently laying out a target date of 2030 to switch entirely to battery-electric vehicles, or BEVs. Nissan this week said it will electrify all models by the ‘early 2030s,’ but that will include gas-electric hybrids as well as BEVs.”
To be honest, it’s an exciting time to be an investor in the electric vehicle boom. However, it’s also an interesting time to invest in the metals that will be needed in the expected 125 million EVs the world wants to see. Lithium for example is under sizable demand. Yet, it’s in short supply. In fact, it’s part of the reason why investors have piled into stocks like Albemarle (NYSE:ALB) and Lithium Americas Corp. (NYSE:LAC).
The industry also needs far more graphite supply. “This is because graphite serves as the anode in the lithium-ion batteries that power these EVs, not to mention the growing number of portable tools and electronics that use the same type of battery,” says Pheneovate. The USGS even put graphite on its list of 35 minerals and metals that are considered critical to the United States.