24th October 2017
Olivier Aeschlimann, Senior Financial Analyst and Fund Manager
Since a few years now, the boom of electric cars has become a true investment theme. This is why everything, which contributes to the production of batteries, is very much appreciated: companies producing lithium, cobalt or graphite have seen their stock prices go through the roof. However the move from a simple investment theme to a true reality, which has the potential to restructure urban planning and the mobility of the 21st century, will require heavy investments. The electricity network will have to be reinforced to accommodate all the new charging stations. More electricity will also have to be produced. Bernstein Research estimates that every electrical car will require additional capacity of between 250 and 800 watt (depending of the type of car and charger). Ultimately, while the technology of batteries is going to change (and what then for cobalt?), much more copper will certainly be needed to develop infrastructure.