- Batteries play a very strong role in the low-carbon energy transition by providing significant energy storage space.
- The current surge in electric vehicles' demand has created pressure on nickel, lithium, and cobalt suppliers.
- Australia, being the major supplier of key battery metals, attracts many miners who have made a huge investment in the sector amid surging demand for nickel and lithium.
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Batteries have become an integral part of the green mission. The global trend to adopt green energy technologies to save the environment by dodging fossil fuel energy sources has pushed the demand for key battery metal to record highs. Nickel, Lithium and Cobalt are the main components of the new-age batteries capable of providing high-energy intensity.
The current growth in the demand for battery metals is highly attributed to the soaring electric vehicles’ (EV) demand. Strong support from the worldwide governments and a commitment to curb the carbon emission level has fuelled the EV revolution. New age batteries are the backbone of the revolution. The recent advancement in battery technology has supported the industry to cope with the challenges faced by earlier EVs like - lower mileage, lower power, and large charging time, etc.
Interesting Read: Australia needs to react to climate change- here’s why.
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However, the current surge in EVs and battery demand has really exerted pressure on the supply side. The prices of cobalt, nickel and lithium hit multi-year highs lately due to the abrupt surge in the demand for these metals, luring speculators to invest in the sector.
In the backdrop of this, let us have a look at few good battery metal stocks that can provide decent returns.
Piedmont Lithium Limited
Piedmont Lithium Limited (ASX:PLL) is an ASX-listed lithium player, which aims to become the only integrated producer of lithium hydroxide from spodumene ores in the US. The miner holds world-class assets in the Carolina Tin Spodumene belt in North Carolina. The key strategic location of PLL’s mine provides affordability and good accessibility to the American companies which are into the battery business.
The company-integrated business intends to enable a net-zero world and the creation of a clean energy economy in America.
The stocks of the company have provided a return of more than 900% in the last one year.
Galaxy Resources Limited
Galaxy Resources Limited (ASX:GXY) is an Australia, Argentina and Canada-focused lithium player. The miner holds a diversified portfolio with a hard rock mine and concentrator in Western Australia, one hard rock mine in Canada and one Tier-1 brine development project in Argentina.
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The miner has gained traction after the success of Mt Cattlin operations, which has served its high-quality product to global supply chains. GXY’s Argentina-located Sal de Vida project is recognised as a Tier 1 asset due to its high-grade and superior brine chemistry.
The miner is well positioned to supply lithium from brine and hard rock deposits. GXY's James Bay spodumene project located in Canada is also in the ready stage to provide high-grade lithium to the buyers.
The stocks of the company gained more than 315% in the last one year.
IGO Limited (ASX:IGO) is a diversified metal and mining company focused on producing critical metals through high-quality assets necessary for the clean energy transition. The company is involved in the discovery, development, and operation of high-quality assets in Australia.
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The miner holds and operated the Nova Nickel-Copper-Cobalt project in Australia. Apart from this, the diversified miner also holds numerous exploration projects in Australia and Greenland.
The stocks of IGO have given an annual return of 53.78%.
Jervois Mining Limited
Jervois Mining Limited (ASX:JRV) aims to become the global battery metal supplier in the emerging battery market. JRV is a leading cobalt-focused miner with significant interest in nickel and copper too. The company has the vision to become the leading supplier of responsibly sourced battery minerals.
The company holds Idaho cobalt operations, Nico Young deposit, in Australia and the largest Nickel Cobalt refinery in Latin America and the Sao Miguel refinery in Brazil.
JRV stocks have gained more than 293% in the last one year.
Poseidon Nickel Limited
Poseidon Nickel Limited (ASX:POS) is a Western Australia-focused nickel sulphide exploration and development company with flagship projects located in the Goldfields region of Western Australia. The miner has a resource base of nearly 400,000 tonnes of nickel.
The miner holds and operates Black Swan, Windarra and the Lake Johnston Nickel Projects. Apart from mines and infrastructure, including concentrators at the mine sites, the operations have significant exploration opportunities, which are demonstrated by the discovery of Lake Johnston's Abi Rose deposits.
The miner has provided an incredible return of 153.57% in the last one year.