https://finance.yahoo.com/m/0b31c000-4623-3cb1-aef4-6eb33471… Hitting Ford’s EV Goal Won’t Be Easy. ‘There Isn’t Enough Metal.’ Morgan Stanley analyst Adam Jonas sees supply chain constraints impacting EV production at Ford and General Motors for longer than investors might expect.
Short term hic-up or long term problem as EV production ramps ups. If long term problem, we may never see the $25,000 EV.
More than the ‘hiccup’ represented by metals availability might be the fall out of the Felicity Ace disaster. What about insurers?
Is the event going to be ascribed to the cargo EV vehicle’s batteries?
Will insurers be willing to write policies covering EV cargo? Prohibiting it altogether? Or sky high premiums???
The industry is pretty much silent about any such developments. But the F.A. fire and sinking has got to be in high level discussions at insurers’ board rooms today. Just haven’t seen any news about it.
High raw material costs, COVID-19 measures challenge China’s NEV industry www.spglobal.com/commodity-insights/en/market-insights/lates…
Domestic demand for copper, used as wiring in electric vehicles, was expected to increase on the back of strong EV sales in China, but the outlook for cathode imports has been dim as the import arbitrage remained largely closed through March, in addition to increased trade financing pressure. Demand plummeted further since strict lockdown measures were implemented in Shanghai…
Market sentiment was strongly affected for battery metals as well, though trading had already been slowing through March due to high [lithium] salt prices…nickel and cobalt salts were less impacted by port congestion…
Even if restrictions are lifted, market sources said the key challenge of high salt prices would continue to hamper the NEV industry, and it remains to be seen how well end-users would respond to higher EV prices come April, though the economic strain from the current lockdown measures could dampen demand in the short term.
China is facing deep throws of stagflation. Depending on the central bank eventually tightening. China’s economy is the biggest basket case we could ever possibly witness.
As US FF rates rise into early next year it will be interesting to see if China’s real estate industry/construction companies collapse.
If so we need a real handle on the swaps market some how. Other wise we are flying blind on how US financials will do.
I am expecting my income to rise substantially this year. But am sussing out a better entry early 2023.