To benefit from Australia’s transition to renewable energy, consider investing in lithium mining companies.

0

Investment opportunities in lithium mining firms to benefit from Australia’s transition to renewable energy

Investing in mining companies that specialize in the extraction of a crucial component required for electric vehicle batteries will be profitable for Australian stock market investors.

To reach (dollar)2.632 billion in the year ending in June, Australian lithium exports increased by 737%.

When the June quarter of 2022 and the June quarter of 2021 were compared, new Australian Bureau of Statistics data revealed an eight-fold increase in the exports of this mineral from (dollar)314 million.

With 46% of the global lithium supply in 2020, Australia will be the world’s largest lithium exporter.

In an effort to combat climate change, the US, UK, EU, Japan, and South Korea have similar goals to Australia: net zero carbon emissions by 2050.

Adam Bandt, the leader of the Greens, has promised that his party will pass the legislation in the Senate after Labor’s plan to cut carbon emissions by 43% by 2030 passed the House of Representatives on Thursday.

Lithium, a crucial component of solar and electric vehicle batteries, will be in high demand as Australia and much of the developed world reduce their reliance on gasoline-powered vehicles and coal-fired power plants.

Mobile phones, laptops, and cameras all use lithium as a key component.

A massive 1,189% increase over June 2021 was seen in lithium concentrate exports, the fuel used to power batteries, which in June reached a record-high (dollar)1.163 billion.

From just (dollar)90 million a year ago, the value of these exports has increased by almost 13 times.

Lithium demand will rise as a result of government subsidies from the US and Australia, according to Jessica Amir, market strategist at Saxo Capital.

She told Daily Mail Australia that many of the key components and the means by which they will continue to produce electric vehicles are sourced from Australia.

“All it means is that the lithium sector now has a baseline of support.”

“The shortage of supply and rising demand” are the current points of emphasis.

Since January 2021, Western Australia has been responsible for more than 99 percent of all Australian lithium exports, and the state already has a nearly monopoly on the country’s iron ore exports.

A contract to supply spodumene concentrate, a crucial mineral for electric vehicles, was signed in 2019 by Pilbara Minerals, Australia’s largest lithium miner, and Chinese automaker Great Wall Motor.

Located 120 kilometers from Port Hedland, Pilgangoora Project and Operation are entirely owned by Pilbara Minerals, Australia’s largest lithium miner.

Nokia News – Quick Synopsis.

Lithium is a key component needed to power electric vehicle and solar batteries Australia’s lithium exports in year to June surged by 737 per cent to $2.632billionValue of these exports multiplied by eight in just a year from $314million in 2021Lithium concentrate exports climbed 1,189 per cent, multiplying almost 13 times

Share.

Comments are closed.