‘EV materials demand to stay solid in 2024; uranium demand to soar in next five years’
John Ciampaglia, CEO of Sprott Asset Management, tells IGTV financial analyst @AngelineOng why demand for EV-related materials in 2024 will remain strong, but perhaps not at the same pace as the last few years.
(Video Transcript Summary)
EV adoption growing globally
In this video interview, John Ciampaglia, CEO of Sprott Asset Management, talks about the materials that are essential for the energy transition and shares his thoughts on the future of uranium.
Ciampaglia explains that electric vehicles (EVs) are becoming more popular worldwide, although the rate of growth may differ between countries. However, he believes that the overall adoption of EVs is increasing and expects it to continue to rise in the future.
This is because consumers now have more options and the prices of EVs are becoming more comparable to traditional cars. To meet the growing demand for EVs, the battery metals sector, which includes metals like nickel, manganese, cobalt, graphite and lithium, will experience significant growth.
Traditional automakers playing catch-up
Ciampaglia mentions that China's BYD and Tesla are currently major players in the EV market. BYD is known for exporting affordable EVs, while Tesla is making a significant impact in North America.
Traditional automakers are working to catch up, but Ciampaglia believes that they will also experience greater adoption of EVs in the coming years, further boosting the EV market.
Lithium, cobalt critical to energy transition
In terms of the energy transition, Ciampaglia emphasises the importance of minerals like lithium, cobalt, and others for storing renewable energy. He expects the demand for these metals to continue increasing as more people switch to EVs.
Additionally, Ciampaglia is bullish on uranium, as governments are changing their attitudes towards nuclear energy and prioritising energy security. He predicts that the price of uranium, which has already doubled in the past year-and-a-half, will continue to rise due to under-investment and the anticipation of a future supply deficit. Ciampaglia even suggests that the price could go beyond $100 per pound.
Overall, Ciampaglia is optimistic about the growth prospects of the materials involved in the energy transition and expects further advancements in the EV and uranium sectors.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
