‘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.
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