The price of lithium has tripled in the last three years. Lithium is the key element in producing the kind of high-efficiency batteries needed for electromobility. Can a lithium mine in Austria help reduce Europe’s dependence on imports?
Global automakers are planning an unprecedented level of spending to develop and procure batteries and electric vehicles over the next five to 10 years. Reuters have analysed public data released by those companies and their plans to spend at least $300 billion on EVs are driven largely by environmental concerns and government policy, and supported by rapid technological advances that have improved battery cost, range and charging time.
Our global long-term Electric Vehicle Outlook (EVO) forecasts EV adoption out to 2040 and the impact that electrification will have on automotive and power markets, as well as on fossil fuel displacement and demand for key materials.
“Our latest forecast shows sales of electric vehicles (EVs) increasing from a record 1.1 million worldwide in 2017, to 11 million in 2025 and then surging to 30 million in 2030 as they become cheaper to make than internal combustion engine (ICE) cars. China will lead this transition, with sales there accounting for almost 50% of the global EV market in 2025.”
First Berlin Equity Research has published an updated research report that maintains its recommendation to BUY at an increased price target of € 0.22. It highlights that DFS funding is secured and a likely shift in the main listing to Vienna.
The report states:
European Lithium (EUR) has announced that it has secured AUD10m in financing from the investor MEFI L.P. (Magna) of which AUD2.5m is available for immediate drawdown. The money will be used to finance the definitive feasibility study (DFS) of the Wolfsberg Lithium Project, which is expected to be completed in April 2019. We expect these funds to strengthen EUR’s position in ongoing negotiations with potential offtake partners.