The battery-metals sector has been declining but the increase in electric vehicle demand has ignited renewed interest from investors.
Tesla's Effect On The Industry
In 2020, Tesla sold nearly 500,000 electric cars and some industry experts believe the rise in sales is encouraging investors to open up to battery metals.
While the use of battery-making metals started to increase in 2017 the demand for electric vehicles at that time wasn't enough for sufficient profits.
In 2021 industry analysts expect a 36% increase in demand for Tesla EV sales. Experts believe that with demand for electric cars increasing, investors may start to become more interested in battery metals.
European Investment Rally
Europe is at the center of a new COVID-19 variant that could put its economy in the shadow of recovering countries.
However, the pandemic appears to have driven more interest in battery metals as several countries commit to big investments in research and production.
Poland, Germany and France announced more spending in battery industries - including battery-making metals. Experts believe that as EV demand increases in 2021 other European nations will follow suit.
Green Revolution Opens Lock To Revival
The biggest breakthrough in the battery metals industry in 2020 - aside from the rise of Elon Musk's Tesla - was the apparent revolution of "green" segments.
More consumers are educating themselves with the ins and outs of green driving, green manufacturing and other environment segments. Investments in green production in the auto sector have increased.
Renewable energy was at the center of car industry talks in 2020 and industry analysts are expecting more conversations about how battery metals can play a role.
Investors are expected to focus on projects that seek the development and expansion of electric car production using specialty metals such as lithium - a big component in EV battery production.
Joe Biden's Potential Role In The Revolution
When U.S. president-elect Joe Biden won the 2020 election talk started about his potential role in reigniting investor interest in battery metals as a result of his pledges regarding clean energy.
The energy department loan authority might kick-start Biden's plans.
Clean energy advocates believe the Biden administration's commitment to green energy could further power the electric vehicle industry and, in turn, could drive activity in the battery metals sector.
Biden has asked former Michigan Gov. Jennifer Granholm to lead the department. Granholm is known for her contributions in engaging the government in clean energy projects.