VOLVY - European Battery Plant Expansion And Their Implied Lithium Demands
Investment Thesis
Through a combination of emission regulations, growth in renewable energy initiatives, buyer incentives and pure economics, EV penetration in Europe is imminent. OEMs are planning ahead, no more so that Volkswagen (VWAGY) (VLKAF). Europe has correctly identified risks along the supply chain and the need for regional integration of the production process. VW has publicly stated its medium-term goal is to support lithium projects in Central and Southern Europe. There are very few economically viable projects in the region, leaving investors with a short list of listed equities to choose from.