While many analysts see a shaky outlook for the global auto industry, ICBC/Standard Bank said it remained neutral on the sector, with possible upside potential from the growing electric vehicle side of the business.
The upcoming move away from pure combustion engines towards hybrids and pure electric powertrains looks set to be a dominant global theme over the next decade. That will likely support metals such as copper, nickel, cobalt and lithium, as well as tin to a lesser degree, according to ICBC research.
Glencore included a CRU study in its December 2018 investor update, which estimated the impact of both electric cars and associated infrastructure on copper, nickel and cobalt demand.
Specifically, they project that total electric vehicle related copper demand will grow from 391,000 mt in 2020 to 4.08 million mt in 2030, while Nickel demand will surge to 1.14 million mt from 86,000 mt over the same period.
Metal Tiger plc (LON:MTR) is listed on the London Stock Exchange AIM Market with the trading code MTR and invests in high potential mineral projects with a base, precious and strategic metals focus.
