![]() Vale’s executive vice president of base metals Deshnee Naidoo told analysts, “But all I can say from the data that we are looking at is that the EV demand still continues to be strong despite some of the softening that we are seeing today.”Īt 6 times expected earnings and 15x FCF, Vale is a mining stock that’s cheap and gives investors EV exposure as well as other critical minerals and metals.QuantumScape touts a lithium-metal battery technology that could change all that. That is fine by Vale, as it isn’t worried about any slowdown in EV demand. Those won’t really begin to hit their strides until the third quarter of next year. Vale is in the middle of a transition from an open-pit mine at Ovoid to underground mines at the Voisey’s Bay project in Canada. Management maintains, though, that nickel production is patchy quarter to quarter, even month to month. It’s why the miner is looking for higher sales and production this time around as well. It explained that’s what occurred last year. Yet Vale expects to sell much of that in the fourth quarter. It’s an impact many miners are experiencing, whether it’s nickel, lithium or other metals. In the recently completed third quarter, Vale produced 42,000 tonnes of nickel, though it has seen prices decline. Vale (NYSE: VALE) is primarily known for its iron ore and copper operations, but it is also one of the world’s largest nickel miners in the world. With lithium demand expected to double by then, ExxonMobil will quickly leapfrog into an industry-leading position.Īlthough lithium grabs most of the headlines regarding EV batteries, nickel is another essential component in their manufacturing. The oil giant won’t begin production until 2027, but it expects that by 2030 it will be producing enough lithium to supply over one million EVs a year. ![]() Exxon can pour a lot of money right away into this initiative. To put that in perspective, leading lithium miner Albemarle‘s (NYSE: ALB) revenue for all of last year was $7.3 billion. It just reported third-quarter operating earnings of $9.1 billion, up 15% from the second quarter. The southern Arkansas region possesses one of the most prolific lithium resources of its type in North America.Įxxon is getting into the game late, but it possesses financial resources unavailable to most players. It acquired 120,000 acres of the Smackover formation earlier this year. That’s obviously directly in our wheelhouse and capability skillset.” The oil stock’s head of low-carbon solutions, the company’s President Dan Ammann, told The Financial Times, “We’re drilling wells 10,000 feet underground into these saltwater reservoirs. In fact, the company just announced it will begin drilling in Arkansas to produce lithium.Įxxon long resisted buying into the renewables space, but this lithium field it intends to exploit is right in its core competency. While its acquisition of Pioneer Natural Resources (NYSE: PXD) shows the energy leader is still committed to fossil fuels. What the heck? Oil and gas giant ExxonMobil (NYSE: XOM) is a battery stock? Well, not right this second, but it soon will be. The following three companies offer that option and are ready to scoop up right now. Investors looking for battery stocks to buy now may want to focus on technologies that exist. Yet these are all unproven at the moment. ![]() IBM (NYSE: IBM) is working on science that will allow for heavy metal-free batteries. NAWA Technologies is using 3D carbon-based nano-materials to boost battery power 10-fold over existing technologies. QuantumScape (NYSE: QS) is developing solid-state batteries. Manufacturers are pushing to develop new technologies. ![]() Local governments continued supporting the industry, which market research firm Rho Motion said allowed the world’s largest EV market to record 29% year-to-date growth through September. Instead, China reported record EV sales in October. That means EV batteries have a strong tailwind at their back.Ĭhina ended EV subsidies last year, which analysts thought would kill the market. electric vehicle (EV) market is slowing, but demand remains upbeat elsewhere around the world. InvestorPlace - Stock Market News, Stock Advice & Trading Tips
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