The Apple electric car adds extra power to an already rising EV super cycle boom
Rumors have been swirling around for some time that Apple may soon launch an electric car to rival Tesla. The most credible one is with Apple using Magna International (NYSE: MGA | TSX: MG) and Magna JV partner LG Electronics to build the car, most likely in the USA or Canada. Batteries could be supplied by LG Energy Solution (formerly LG Chem). LG Energy Solution has a production base in Michigan, USA.
If an Apple electric car or an Apple EV (maybe a shuttle autonomous vehicle) is launched and becomes as popular as the Apple iPhone then it would be an industry defining moment with enormous sales to follow. This will add to the forecast burgeoning demand for EV metals with an EV metals supercycle of a magnitude never seen before in history. For example, a November 2020 UBS forecast is for “lithium demand to lift 11-fold from ~400kt in 2021 through to 2030.”
Today I look at the most likely EV related miners from North America that could supply Apple-Magna-LG with the valuable battery and electric motor metals such as lithium, cobalt, graphite, nickel, manganese, copper, and rare earths.
The big established lithium miners such as Albemarle (NYSE: ALB) have only a very small mining presence in North America, whereas there are several lithium junior miners with significant North American projects on the way towards production. These include Piedmont Lithium Limited (NASDAQ: PLL) (Charlotte North Carolina, USA), Standard Lithium Ltd. (TSXV: SLL | OTCQX: STLHF) (Southern Arkansas, USA), Galaxy Resources Limited (ASX: GXY) (James Bay, Quebec, Canada), Critical Elements Lithium Corp. (TSXV: CRE | OTCQX: CRECF) (Canada), Sayona Mining Limited (ASX: SYA) (James Bay Quebec Canada), Frontier Lithium Inc. (TSXV: FL) (Ontario, Canada). Promising South American projects that could also be possible lithium suppliers are Sigma Lithium (TSXV: SGMA) (Brazil) and Neo Lithium Corp. (TSXV: NLC | OTCQX: NTTHF) (Argentina). There is also the lithium clay junior miners Lithium Americas Corp. (NYSE: LAC | TSX: LAC) (Nevada), Cypress Development Corp. (TSXV: CYP) (Nevada). Another Nevada lithium-boron junior is Ioneer Ltd. (ASX: INR).
Promising cobalt junior miners with North American projects include Jervois Mining Limited (ASX: JRV | TSXV: JRV) (Idaho, USA), First Cobalt Corp. (TSXV: FCC) (Idaho, USA), Fortune Minerals Limited (TSX: FT) (NWTs, Canada), Global Energy Metals Corp. (TSXV: GEMC) (cobalt in Canada, lithium in USA), Canada Silver Cobalt Works Inc. (TSXV: CCW | OTCQB: CCWOF) (Ontario, Canada), and CBLT Inc. (TSXV: CBLT) (Canada).
A promising graphite junior and growing graphene producer that we follow at InvestorIntel is ZEN Graphene Solutions Ltd. (TSXV: ZEN). Their Albany Graphite Project is located in Ontario Canada.
The largest North American nickel producer is Vale SA (NYSE: VALE) with their huge projects in Voisey’s Bay, Canada. Promising North American nickel juniors are Talon Metals Corp. (TSX: TLO) (Minnesota, USA), Canada Nickel Company Inc. (TSXV: CNC) (Ontario, Canada), and Garibaldi Resources Corp. (TSXV: GGI) (BC, Canada).
A promising copper junior that we follow at InvestorIntel is Kodiak Copper Corp. (TSXV: KDK | OTCQB: KDKCF) with its 100% owned copper porphyry projects in Canada and the USA.
North America’s main rare earths producer is MP Materials Corp. (NYSE: MP) in Mountain Pass California. Promising rare earth juniors include Appia Energy Corp. (CSE: API | OTCQB: APAAF) (Saskatchewan, Canada), Avalon Advanced Materials Inc. (TSX: AVL | OTCQB: AVLNF) (Canada), Vital Metals Limited (ASX: VML) (NWT, Canada), Quebec Precious Metals (TSXV: QPM) (Ontario, Canada), Search Minerals Inc. (TSXV: SMY) (Labrador, Canada), and Granada Gold Inc. (TSXV: GGM) who recently discovered some rare earths in Quebec, Canada.
An EV metals supercycle is coming this decade as EV sales look likely to increase many fold, from 4.2% global market share in 2020 potentially to around 50%+ market share by 2030. An Apple electric car will only add to the boom.
Investors can look to take positions into the quality EV metal miners as discussed above, then sit back for a decade and enjoy the ride.
Disclosure: The author is long Tesla and many of the EV metal miners mentioned in this article.
Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment, and a Graduate Diploma in Financial Planning. He ... <Read more about Matthew Bohlsen>