By - Abhishek Sharma
- Lithium's role becomes crucial because the world is presently at crossroads regarding climate change.
- The rising number of electric vehicles also means the lithium requirement is also rising.
The shift to electric vehicles (EVs) has hastened in recent years amid the rising cost of petrol and diesel. People look at long-term running costs even as they have to pay more for EVs. However, there are concerns that even after gaining a lot of popularity, EVs may not be able to end the reliance on fossil fuels.
According to a report citing a senior Toyota executive, a "silent majority" of car companies are concerned over the future of EVs, wondering whether the battery-operated vehicles are enough to be a single option.
While there's pressure on automakers to go green, the industry is struggling to do so, primarily because of the supply chain issues and complex processes that keep the cost of manufacturing an electric vehicle high.
Image source: © Dashark | Megapixl.com
Besides, the rising number of electric vehicles also means an increasing requirement for lithium, a metal used in batteries. The metal's role becomes even more critical because the world is at crossroads at present regarding climate change.
Let us look at some Lithium-related stocks listed on the LSE and explore their investment prospects in the current scenario, especially when carmakers are taking more interest in battery-powered vehicles.
AMTE Power Plc (LON: AMTE)
The FTSE AIM-listed firm is among the leading lithium-ion battery cell manufacturers in the UK. The company has been in business for over 30 years and produces the cells at its factory in Scotland. AMTE's share price stood at GBX 56.00 as of 9:00 am GMT on 20 December 2022. The company has a market cap of £20.29 million, and its EPS (earnings per share) is in the red at -0.13. Its one-year return stood at -62.67% at the time of writing.