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HIGHLIGHTS
- The soaring prices of commodities due to the ongoing geopolitical tension may push the cost of electric vehicles further.
- The London Metal Exchange suspended trading of nickel after its prices skyrocketed to more than double in a matter of hours to US$100,000 per tonne.
- Russia is the world’s third-largest nickel producer after Indonesia and the Philippines.
Commodities prices are soaring in the wake of Russia’s invasion of Ukraine and tougher sanctions imposed on Russia, which are increasing concern that it will disrupt the global supply chain and will threaten the global transition to electric vehicles.
The global car manufacturing industry has been warning that the soaring prices of the commodities due to ongoing geopolitical tension will further push the price of electric vehicles (EVs) up as the industry is heavily dependent on commodities, such as nickel, lithium, palladium, and cobalt. Russia is the world’s third-largest nickel producer after Indonesia and the Philippines.
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Image credit: © 2022 Kalkine Media®
On Tuesday, the London Metal Exchange suspended trading of nickel after its prices skyrocketed to more than double in a matter of hours to US$100,000 per tonne for the first time in its 145-year history. The soaring prices could raise the cost of manufacturing electric vehicles to over £762.44, according to a Morgan Stanley research report.
Prices of aluminum that is used in car bodies jumped to over US$4,000 on Tuesday and prices of Palladium that is used in catalytic converters also surged to an all-time high of US$3,439 this week, after surging 80% this year. Meanwhile, lithium surged by 118% since January and copper surged to around US$10,800 per tonne.
Image credit: © 2022 Kalkine Media®
Let us look at three FTSE-listed EV-related stocks, the prices of these may get affected by surging prices.
AMTE Power Plc (LON: AMTE)
AMTE Power Plc is an AIM-listed manufacturer of lithium-ion batteries for specialist markets. The market cap of the company stood at £31.37 million as of 9 March 2022. The company’s shares since the start of this year have given a return of -38.27%. AMTE Power Plc’s shares were trading at GBX 89.50 around 9.15 AM, on 9 March 2022.
Also Read: Harworth, Safestore: Stocks you may buy amid rising housing prices
Johnson Matthey Plc (LON: JMAT)
Johnson Matthey Plc is an FTSE 250-listed specialty science chemicals company engaged in providing sustainable, cutting-edge solutions to its customers across 30 countries. The market cap of the company stood at £3,294.74 million as of 9 March 2022. The company’s shares since the start of this year have given a return of -13.61%. Johnson Matthey Plc’s shares were trading at GBX 1,847.00, up by 4.50%, around 9.15 AM, on 9 March 2022.
Ceres Power Holdings Plc (LON: CWR)
Ceres Power Holdings Plc is an AIM-listed fuel cell technology and engineering business to sustain a clean and green world. The market cap of the company stood at £1,263.58 million as of 9 March 2022. The company’s shares since the start of this year have given a return of -24.34%. Ceres Power Holdings Plc’s shares were trading at GBX 760.50, up by 0.86%, on 9 March 2022.
Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
