5 FTSE electric vehicle stocks to buy in August

Highlights 

• According to Society of Motor Manufacturers and Traders (SMMT), electric cars accounted for 8.4 per cent share in the total car sales in May 2021.
• All major automobile manufacturers are rushing to make the most of the government net zero mandates in favour of adoption of electric vehicles.
• There are lots of EV related stocks that have been showing good surge with the boom in the sector.

Electric vehicles constitute an important aspect of the UK’s plan to attain net zero carbon emissions by 2050, aimed at preventing the future destruction of the climate. Last year the government also announced ban on sales of new petrol and diesel cars in next 10 years by 2030 (hybrids that combine battery and engine to be banned by 2035).

The UK’s Climate Change Committee in June prioritised developing the country’s charging network before the 2035 ban on new diesel and petrol engines, beyond London. London accounts for about 31 per cent of public chargers, as charging companies focus on wealthier citizens.

Apart from the government incentives on offer to drive the uptake of electric vehicles and speed up the transition to zero electric vehicles, it is also collaboration with various players in the electric vehicle supply chain to address the demand.

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All major automobile manufacturers are rushing to make the most of the growing number of government mandates in favour of adoption of electric vehicles. Tesla (NASDAQ:TSLA) is one of the biggest names in the global electric vehicle market. The Tesla Model 3 became the one of the most trendy battery-driven electric car in the UK. It overtook sales of Nissan’s Leaf models during January to April period in 2021.

Electric car sales in the UK are surging as traditional carmakers are required to comply with strict carbon emission requirements. According to Society of Motor Manufacturers and Traders (SMMT), electric cars accounted for 8.4 per cent share in the of total car sales in May 2021. Other leading electric vehicle makers such as Audi, BMW, Daimler, etc., are launching their EVs to drive sales and remain relevant.

Here we take a look at five FTSE electric vehicle related stocks that have given robust return to its shareholders in the last one-year.

Ceres Power Holdings Plc (LON:CWR)

Ceres Power Holdings is a company that specializes in fuel cells and electrochemical technology for electric vehicles. The company’s revenues for the half year ended on 30 June 2021 is estimated at around £17 million, up from £8.9 million in H2 2020. Its order book and pipeline stood at £42 million and £44 million respectively, compared to £54 million and £44 million for the H2 2020.

Ceres Power’s shares were trading at GBX 1,030.00 as of 10:07 AM on 17 August 2021, and it gave one-year return of 99.01 per cent to its shareholders. The market cap of the company stood at £1,946.00 million.

Kodal Minerals Plc (LON: KOD)

Kodal Minerals is into the exploration and development of minerals. The company’s licence application for Bougouni Mining is currently is waiting for final approval from the Ministry of Mines, Mali. It also announced successful first gold exploration operations at the Nielle concession. In response to the growing demand for EVs across the globe, the company plans to step up its spodumene lithium production used in batteries of EVs.

Kodal Minerals boasts of massive lithium footprint in southern Mali, in addition to its flagship Bougouni Lithium Project, which includes 200 sq km Bougouni West Project and 109 sq km Diendio Project.  Kodal has a total land holding of over 800 sq km in Mali, making it the largest lithium developer (in terms of acreage) in West Africa.

Kodal Minerals’ shares were trading at GBX 0.36 as of 10:07 AM on 17 August 2021, and it gave one-year return of 630.42 per cent to its shareholders. The market cap of the company stood at £59.30 million.

Bacanora Lithium Plc (LON: BCN)

Bacanora Lithium is a UK-based lithium development company. Bacanora collaborated with its shareholder, Ganfeng Lithium, for development of a 35,000 tonne, open-pit lithium carbonate operation at the Sonora Lithium Project in Mexico. Bacanora also owns a 35.5 per cent stake in Zinnwald Lithium Plc, the owner of Zinnwald Lithium Project and the Altenberg, Falkenhaim, and Sadisdorf licences in Germany.

Bacanora Lithium’s shares were trading at GBX 58.00 as of 9.41 AM on 17 August 2021, and it gave one-year return of 152.17 per cent to its shareholders. The market cap of the company stood at £222.80 million.

Royal Dutch Shell Plc (LON: RDSA)

FTSE 100 listed Royal Dutch Shell is a major oil and gas company, however, the company is focusing on addressing the charging needs of electric vehicles – at home, work, or on-the-road. In January 2021, Shell announced the takeover of Ubitricity. The company owns 2,700 on-street charge points in the UK. The deal is slated for completion by the end of 2021. The acquisition will help Shell scale its EV charging offer.

Royal Dutch Shell’s board announced an interim dividend for the Q2 2021 of US$ 0.24 per ordinary share, an increase of over 38 per cent from Q1 2021.

Royal Dutch Shell’s shares were trading at GBX 1,427.00 as of 9.40 AM on 17 August 2021, and it gave one-year return of 21.76 per cent to its shareholders. The market cap of the company stood at £58,459.07 million.

AMTE Power Plc (LON:AMTE)

AMTE Power is a company engaged in developing and manufacturing lithium and sodium-ion battery cells for specialist applications. In March 2021, the company raised £12.9 million for the completion of the first phase of product development and support for establishment of its gigafactory.

In June 2021, AMTE Power was selected for the government funded 3-year ULTRA project that focuses on bringing two AMTE Power lithium-ion batteries for commercialisation in the auto sector. As a part of the project, AMTE Power will receive £2.3 million over the period of next three years.

AMTE Power’s shares were trading at GBX 207.50 as of 9.39 AM on 17 August 2021, and the market cap of the company stood at £71.93 million.