The Torquest - Your Daily Auto Fix

March 9, 2021. Newsletter, Issue No. 2

1. Battery metals are back in buzz on European Electric Vehicle boost: Reuters

In the early 1900s, electric cars and electric taxis ran on New York streets and represented nearly one-third of all vehicles. In fact, the Fritchle Electric back then claimed to have clocked 100-miles on a single charge! That robust and initial EV rush however peaked in 1912 and was cut short as Henry Ford’s mass-produced and gas-powered Model T spelt doom for the electric cars until of course its most recent revival.

EVs are making a comeback and so are the battery metals. Both Lithium and Cobalt have sprung back to life in 2021, with prices rallying hard in January and February, driven by generous government subsidies for EVs during the pandemic and in turn defying the broader global downturn in automotive sales, reports Reuters.

For the first time in 2020, Europe sold more battery-electric-vehicles (BEV) and plug-in-hybrid electric vehicles (PHEV), overtaking China. EV registrations in Europe (EU, EFTA and UK) more than doubled to 1.36 million in 2020, according to the European Automobile Manufacturers Association.

In a January 2021 report, S&P’s forecast global passenger Plug-in electric vehicle sales to increase from 2.9 million units in 2020 to 9.5 million units in 2025 with Europe and China expected to dominate the passenger PEV sales and growth to 2025.

The driver for both Li and Co demand is the EV revolution which is gathering charge quickly. Luckily prices are rising and metals producers who have spent much of the last two years deferring expansions due to low prices and trading conditions, are catching up on the buzz. As Europe now joins China in the EV revolution, demand is only going to go one way.

It's a party everyone's getting dressed up for.

2. Tesla lifts off, rockets toward best day since 2013: Reuters

Market cap of ~8 General Motors or ~13 Fords = Tesla's market cap now!

Shares of Tesla Inc jumped 20% on Tuesday, bouncing back from a selloff and on track for its largest one-day gain in nearly eight years, after data showed a rise in China sales, reports Reuters.

The jump, which added over $100 billion to Tesla’s market capitalization, would end a five-day streak of losses for the company in a Nasdaq slump in which investors spooked by rising interest rates have abandoned growth stocks with heady valuations.

Tesla sold 18,318 China-made vehicles in February, up from 15,484 in January, Chinese auto industry body CPCA said.

New Street Research upgraded Tesla's stock to a $900 price target and said ittesla meme could deliver 2 million electric vehicles in 2023.

3. Toyota’s JIT+BCP strategy is helping it thrive amidst chips shortages

Toyota’s business continuity plan (BCP) that requires suppliers to stockpile anywhere from two to six months’ worth of chips has so far kept the Japanese automaker largely unscathed from the global shortage of semiconductors even as many rival automakers have been forced to suspend production, reports Reuters. And its not just Toyota, Hyundai and its sister firm Kia Corp too have maintained a stockpile of low-tech chips that helped them keep up production.

4. Is Harley's LiveWire 2021 e-motorcycle getting a bigger battery?

More weight, less power. The new 2021 Australian certification filings for the LiveWire indicate that the weight of the bike will increase six units to 255 kgs and the power will slightly decrease three units to 75 kW, compared to the same filings made in 2020, reports electrek.

The current Harley-Davidson LiveWire uses a 15.5 kWh battery. That provides the bike with a city range of 235 km (146 mi) and a combined city/highway range rating of 153 km (95 miles).

5. Chinese EV trio eye HK listings this year to raise combined $5 billion: Reuters

U.S.-listed Chinese electric vehicle makers Li Auto Inc, Nio Inc and Xpeng Inc plan to list in Hong Kong as soon as this year, tapping a growing investor base closer to home, Reuters reports citing sources.

6. LG hopes to make new battery cells for Tesla in 2023 in U.S. or Europe: Reuters

With aggressive production targets, everyone's seeking more charge. The South Korean supplier LG Energy Solution aims to build advanced battery cells for Tesla Inc's electric vehicles in 2023 and is considering potential production sites in the United States and Europe, Reuters reported on Tuesday.

Elon Musk had last year announced an ambitious plan to develop new cells in-house, prompting suppliers like LG and Panasonic to embrace the unproven technology or face risks of losing a major customer for the longer term.

LG currently has a $2.3 billion joint venture with General Motors Co in Lordstown, Ohio, to make pouch-type electric vehicle batteries for future GM electric vehicles and is separately considering building a second U.S. battery factory with LG.