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Highlights
- The demand for electric vehicles has been rising at a steady pace in the UK. The production of electric vehicles and hybrid cars was at record high levels in November 2021.
- Despite multiple challenges, the market share and sales of electric vehicles are growing progressively as many people are rapidly adopting electric vehicles.
The demand for electric vehicles has been rising at a steady pace in the UK. The production of electric vehicles and hybrid cars was at a record high level in November 2021, despite a fall in overall car production, including petrol and electric cars. According to The Society of Motor Manufacturers and Traders (SMMT), the output of the electric vehicle in November increased by 52.9% to 10,359 units, representing close to 13.7% market share of all production output.
The overall car production in the UK was down for the fifth consecutive month as the automotive industry continues to face multiple issues like semiconductor shortage, rising inflation, and low economic growth.
Despite multiple challenges, the market share and sales of electric vehicles are growing progressively as many people are rapidly adopting electric vehicles to take benefit of government incentives and support the government initiative of net-zero carbon emission by 2050. Also, the UK government has announced plans to ban new petrol and diesel cars sales from 2030, which is pushing automobile makers towards electric vehicle production.
Let us look at FTSE listed stocks that can give investors exposure to the electric vehicle ecosystem:
Rio Tinto Plc (LON: RIO)
FTSE 100 constituent company is engaged in metal and mining activities. However, the company is diversifying its business operation by entering the electric battery material business to achieve the goal of the global energy transition. The company has announced the acquisition of the Rincon lithium project, an undeveloped lithium brine project situated in Salta Province of Argentina. The company aims to deliver battery-grade lithium carbonate from the project site to meet the rising demand for lithium, which is expected to grow at 25-35% per year over the next decade. The acquisition deal was signed for a total amount of USD 825 million.
Rio Tinto Plc’s last close was at GBX 4,854.5 on 22 December 2021, with a market cap of £61,196 million.
AMTE Power Plc (LON: AMTE)
The company manufactures lithium-ion battery cells. Its products are primarily utilised in the automotive industry, and the energy storage industry. FTSE AIM-listed company recently announced that it has been selected as one of the partners in the UK government-funded CELERITAS Project, which aims to develop ultra-fast charging systems to deliver 80% charge in under 12 minutes. The company will manufacture high-power cells which will be used in a rapid charging system for the project.
AMTE Power Plc’s last close was at GBX 147.50 on 22 December 2021, with a market cap of £51.99 million.
Ceres Power Holdings Plc (LON: CWR)
The fuel technology company has operations in North America, Asia, and Europe. The company’s fuel cell technology has application in the transportation industry and many other sub-sectors like data centers. For the six months ended 30 June 2021, the company reported a 96% rise in revenue at £17.4 million, mainly driven by the solid performance of the commercial partnership business.
Ceres Power Holdings Plc’s last close was at GBX 990.50 on 22 December 2021, with a market cap of £1,889 million.
