The growing trend of hybrid electric vehicle (HEV) adoption is poised to reshape the landscape for essential raw materials.
Bill Peterson from JPMorgan outlines how this shift impacts the demand for lithium, rare earths, copper and aluminum.
For investors, this shift comes with significant implications in related ETFs such as the Global X Lithium & Battery Tech ETF (NYSE:LIT), Amplify Lithium & Battery Technology ETF (NYSE:BATT), WisdomTree Battery Value Chain and Innovation Fund (NYSE:WBAT) and the United States Copper Index Fund (NYSE:CPER).
Lithium and Rare Earths: Balancing Act
The demand for lithium and rare earths is projected to decline due to lower battery electric vehicle (BEV) sales. BEVs traditionally contain a higher content of these materials.
While HEVs and plug-in hybrid electric vehicles (PHEVs) are set to increase, their cumulative demand for lithium and rare earths won’t fully offset the drop from BEVs.
Related: As EV Adoption Stalls Due To ‘Chicken And The Egg’ Situation, Hybrids Race Ahead
This nuanced demand scenario should ...Full story available on Benzinga.com
Benzinga
