Where to invest if you believe the rise of Electric Vehicles is inevitable

It’s utterly inevitable – the demand for electric vehicles (EV) is set to boom, offering lucrative opportunities for investors.

Just as the internal combustion engine displaced horses as the means to propel vehicles in the late 1800s, the electric engine is set to be the largest disrupter in the automotive market 120 years later.

Andrew Dittberner, Old Mutual Private Client Securities

Where to invest if you believe the rise of EV is inevitable

The increase in the number of electric vehicles is contributing to the soaring price of cobalt – a key ingredient in the lithium-ion batteries used in electric vehicles.

According to Bloomberg, Samsung has joined Apple in taking an unprecedented step by reportedly negotiating directly with a mine in the Democratic Republic of Congo to secure cobalt supplies.

The element is an essential component in the rechargeable batteries used in smartphones, but increasing competition — mainly from electric car manufacturers — has made an already-scarce element even more valuable.

Andrew Dittberner, Old Mutual Private Client Securities

Buy Glencore shares?

Dittberner says Glencore is a potentially lucrative investment.

It is a major producer of copper, nickel and cobalt, all critical elements in the manufacturing of electric vehicles.

Glencore recently agreed to sell around a third of its cobalt production over the next three years to Chinese battery recycler GEM Co Ltd.

Currently, the largest purchaser of cobalt in the world, China, is vying to be the leading manufacturer of electric vehicles. The deal between Glencore and GEM will see China purchase 50% of the global supplies of cobalt by the end of 2018.

Andrew Dittberner, Old Mutual Private Client Securities

Not convinced EV is imminent? You may want to consider buying Anglo American Platinum.

Anglo American Platinum is the world’s largest producer of platinum.

The company is not positioned to benefit directly from the onset of electric vehicles.

If, however, the adoption of EV takes longer than many anticipate, it will continue to benefit from the ongoing demand for platinum used in catalytic converters (exhaust emission control devices) of petroleum and diesel-powered vehicles.

Other stocks to watch - Alphabet (Google) and Continental

It may not be obvious, but Alphabet (Google) and Continental will also benefit from the ongoing transition to an all-electric motoring future.

Alphabet is investing massive amounts of capital in the autonomous vehicle market.

Continental produces technologically enhancing products ranging from electric mobility and automated driving components to vehicle infotainment systems.

The Electric Vehicle Initiative (EVI)

Ten countries are currently members of this initiative – including China, the United Kingdom, the United States and South Africa – representing the vast majority of the global EV market.

It aims for a 30% market share for EVs in the member countries by the year 2030.

Many car manufacturers have committed to phasing out petrol and diesel-only vehicles.

Dittberner, however, believes that investors should treat the transition as a longer-term, global megatrend, as opposed to an overnight development.

An all-electric future is certain, but the timeframe is not.

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
'Capping fuel price will harm transformation, jobs and won’t benefit consumers'

'Capping fuel price will harm transformation, jobs and won’t benefit consumers'

The Money Show’s Bruce Whitfield interviews PetroConnect cofounder Sbonelo Mbatha.

3 risks to your retirement savings (and how to mitigate each of them)

3 risks to your retirement savings (and how to mitigate each of them)

Only 5% of South African retirement fund members will retire comfortably. Bruce Whitfield interviews advisor Warren Ingram.

'Constitutional change is not about land reform. It’s about the election'

'Constitutional change is not about land reform. It’s about the election'

Bruce Whitfield interviews political economist Nic Borain and Cas Coovadia, MD at the Banking Association of South Africa.

Gift of the Givers' Dr Imtiaz Sooliman – angel amongst men – talks about money

Gift of the Givers' Dr Imtiaz Sooliman – angel amongst men – talks about money

"I have no desire for clothes. I have no desire for holidays. I have no desire for outings. All I see is the suffering of people…"

‘Budgeting’ for people who don’t budget (and probably never will)

‘Budgeting’ for people who don’t budget (and probably never will)

A simple savings plan for people who don’t like to budget. Bruce Whitfield interviews personal finance guru Warren Ingram.

You’re either a ‘money slave’ or a ‘money master’ (says author of 'My Money')

You’re either a ‘money slave’ or a ‘money master’ (says author of 'My Money')

The Money Show’s Bruce Whitfield interviews Sugar Creek financial expert and author of “My Money” Gerald Mwandiambira.

Popular articles
Unisa sued for refusing to allow professor with disabled child to work from home

Unisa sued for refusing to allow professor with disabled child to work from home

Professor Venitha Pillay believes it is her responsibility as a parent to ensure her disabled daughter lives a comfortable life.

Cyclists brought the heat as they tackled the 2018 Telkom 947 Cycle Challenge

Cyclists brought the heat as they tackled the 2018 Telkom 947 Cycle Challenge

The annual Telkom 947 Cycle Challenge showcased pure heart as 24 000 riders took to the streets to tackle the 95km route which has been ‘flipped’ for the first time.

I didn't grow up accepting that my race made me inferior  - Akin Omotoso, actor

I didn't grow up accepting that my race made me inferior - Akin Omotoso, actor

In the profile interview, actor and film director Akin Omotoso shares some personal experiences of his upbringing, and chats about moving from Nigeria to South Africa during Apartheid.

I broke my cell & deactivated my account after I saw Gigaba's vid - Coconut Kelz

I broke my cell & deactivated my account after I saw Gigaba's vid - Coconut Kelz

In the Current Affairs segment, satirical comedian Coconut Kelz chats about the real reason behind Malusi Gigaba's resignation.

[LISTEN] Is Gqom really music? Callers share their views

[LISTEN] Is Gqom really music? Callers share their views

Callers on the open line discuss class appropriation by musicians and music genres.

Gift of the Givers' Dr Imtiaz Sooliman – angel amongst men – talks about money

Gift of the Givers' Dr Imtiaz Sooliman – angel amongst men – talks about money

"I have no desire for clothes. I have no desire for holidays. I have no desire for outings. All I see is the suffering of people…"

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.