The impact of electric vehicle proliferation will, we believe, be widespread, at both a corporate and a country level. That means investors will need to take these factors into account when analysing their portfolios.
So where are the winners and losers in this scenario of a transition to a cleaner, greener world of mobility?
One obvious place to start when considering the winners is to think about the resourcing question. Over time the world’s producers of copper, cobalt, rare earth elements, graphite, nickel, aluminum, and lithium will likely benefit from increased demand.
Battery providers and electronics firms also stand to gain from the increase in the number of EVs being manufactured, and therefore higher demand for the technology powering them.
Pace of adoption is a key variable that could determine how great an impact the shift to EVs has on various areas of the market, as ultimately a speedy transition would make it more difficult for corporates, the energy sector and countries to adjust. Investors can better gauge the potential impact on their investment portfolios by examining how the rising demand for electric vehicles may affect investments in the automobile sector, the energy sector and country exposures.
Gareth Colesmith, head of global rates and macro research, Insight Investment.
Doc ID: 733460