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.

Lithium

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).

Cobalt

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).

Graphite

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.

Nickel

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).

Copper

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.

Rare Earths

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.

Closing remarks

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.

Further reading

Disclosure: The author is long Tesla and many of the EV metal miners mentioned in this article.




Jack Lifton on Apple Cars Rare Earths Supply Chain Rumors

In this episode of InvestorIntel’s Critical Materials Corner with Jack Lifton, Jack talks about the rumored soon-to-be signed contract between Apple and LG Electronics and Magna International joint venture, e-Powertrain, to produce electric Apple Cars.

In this InvestorIntel video, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Jack went on to say that the joint operation will need large quantities of lithium-ion batteries and rare earths. He further added that it is great news for the Canadian lithium, cobalt and rare earths miners as Magna International, being a Canadian company, “is going to focus on domestic sourcing.” He continued, “We are going to see a regional development of the supply chain.” Calling Magna “the Foxconn of the automobile industry”, Jack explained why Apple’s rumored decision to go with Magna makes very good sense and is just the “tip of an iceberg.”

To watch the full video, click here

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