The electric vehicle market is about to shift into higher gear.
All with President Biden pushing for EVs to make up 40% to 50% of all new vehicle sales by 2030.
In fact, later today, “The president is set to sign an executive order calling for half of new car sales to be of electric vehicles powered by batteries and fuel cells or plug-in electric hybrids by the end of the decade. Leaders from auto companies and labor unions are expected to join Biden at the White House on Thursday afternoon, according to the senior administration officials, who spoke on the condition of anonymity because they were not authorized to discuss plans publicly,” says The Washington Post.
“In the near term, the Environmental Protection Agency and the Transportation Department were also set Thursday to propose new requirements on greenhouse gas emissions and fuel efficiency for cars, SUVs and pickup trucks through model year 2026,” they added.
It’s why General Motors and Ford are investing billions in EVs. In fact, General Motors just said it’ll boost spending on electric vehicles by $35 billion through 2025. Plus, according to a new study by Ernst & Young, electric vehicles could outpace combustion engines in the next 12 years in the U.S., Europe, and China, according to The Street. “By 2045, non-EV sales were seen plummeting to less than 1% of the global car market.”
With Biden’s coming announcement, we expect to see further upside in related EV names, including Tesla (TSLA), Nio Inc. (NIO), and Li Auto (LI), for example.
Unfortunately, there’s a problem.
Having run short of key metals, such as lithium, cobalt, silver, rare earths, copper, nickel, and graphite, the EV industry is still scrambling for supply.
Even the IEA just warned, “The supply of critical minerals crucial for technologies such as wind turbines and electric vehicles will have to be ramped up over the next decades if the planet’s climate targets are to be met. At least 30 times as much lithium, nickel and other key minerals may be required by the electric car industry by 2040 to meet global climate targets.”
In addition to EV stocks, take a look at lithium, copper, cobalt, and graphite stocks, too.
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