March 6, 2023
Slowly, but surely, all of the car companies are coming on board.
In these pages, we’ve talked at length about the electric vehicle revolution and how every car company is putting more EVs on the road.
Tesla, whatever you may think of them, more or less forced the hands of all of the other car companies with their approach. I’d hazard a guess that most people associate that company’s name with the term ‘electric car.’
So Elon Musk’s company had a leg up on the competition in breaking through to consumers who were interested in EVs.
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But the other companies are quickly catching up. Ford, General Motors, and the big European and Japanese car companies are all making their plans known for the segment.
I try to go to several car shows per year, and I’ve noticed at the most recent ones that the companies will put their EV offerings front and center. Big displays draw attention to what these companies see as the future and offer a glimpse of what consumers have to look forward to.
Many companies have committed to not offering internal combustion engine cars past certain model years. States throughout the country are following suit and banning the sale of new combustion engine cars past a certain point.
And on top of all of that, President Biden has made transitioning to zero-emission cars a cornerstone of his presidency. Not only has he pledged to build the infrastructure needed to support all of these EVs on the road, but he’s offered car companies tax incentives to scale up domestic production of batteries needed to power these cars.
His plan has been paying off. Companies like Ford, GM, Tesla, Toyota and others have either opened plants to help them get these incentives or plan on doing so.
Honda, maker of the iconic Civic, recently broke ground on a plant in Ohio where it will make batteries for its EV offerings. It’s partnered with LG Energy Solutions to the tune of $3.5 billion and is pushing to only sell EVs by 2040. This is all on top of a plan to spend another $700 million to retool three other plants in Ohio for EV battery manufacturing.
The company is aiming for construction to be done by the end of next year with production starting the year after that.
Honda, like many other Japanese car brands, finds itself playing catchup with getting into the EV game, but those incentives and the consumer demand are too good to ignore.
The partnership it’s formed with LG is just the latest in a long line of partnerships meant to carve out a piece of the EV market. GM partnered with Lithium Americas, a mining company, to develop the Thacker Pass mine in Nevada in January.
Ford inked a similar deal with a company called Ioneer last summer. Tesla is working with a company called Piedmont Lithium for their supply.
As more car companies dive into the EV sector, these types of deals are going to be even more common. Lithium is already in short supply, meaning that the companies that supply it can demand a premium.
The car companies have no choice but to play, because without lithium this whole EV revolution falls on its face.
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So you’re going to hear more about lithium miners becoming some of the most sought-after investments in the market in the next few years.
This lithium boom is going to make select investors very wealthy, but only if they get into the right companies.
One small company is getting all kinds of attention from the companies that are going to need the lithium it can mine. The resource it sits on is massive, and it’s in a safe jurisdiction. Its share price is still low, but it could easily climb to double digits very soon.
Learn all the details here and see just why this company is the one you want to be in when the lithium boom really takes off.
Editor, Daily Profit Cycle