The EV Revolution
The Paris climate agreement set the global economy on a path toward achieving carbon-neutrality by 2050. With around 20% of global CO2 coming from transport, the widespread adoption of electric vehicles is a key strategy for meeting this goal.
With pricing and performance improving, and with government mandates setting firm timelines, the pace of adoption has surprised even the more bullish forecasts in recent years.
This worthy goal requires a step change in the supply of raw materials however, because if you want an electric vehicle, you need lithium, nickel and cobalt. The forecasted increase in demand for the key inputs for a decarbonised economy are significant and sustained.
The evolution of policy and pricing will dictate how the demand growth plays out, but the nickel market looks particularly tight and by some forecasts, cobalt demand is expected to double over this period.
Alligator Energy has good exposure to this strong thematic through our holding in the Piedmont Project in Italy, and enjoys the benefits of doing so in a tier one jurisdiction and close to primary markets.