Battery technology improvements are driving the expansion of the electric vehicle industry with vans, ships and aircraft becoming increasingly viable as battery weight and size issues and efficiency improve, according to a webinar discussion between Hamad Ebrahim, Head of Research at NTree International and Mark Copley, Associate Professor, WMG, University of Warwick.
But increasing demand for metals for batteries is turning the spotlight on ESG issues in metal mining, and NTree says blockchain technology will play an important role in addressing ESG concerns and ensuring metals are responsibly sourced.
The presentation highlighted forecasts that global electric vehicle sales will grow from five million globally to around 40 million by 2040 and expansion into vans, shipping, and aircraft will increase demand for batteries and metals. Amazon plans to have 10,000 electric vans operating by 2022 and 100,000 by the end of decade while batteries are being used in powering ships and aircraft with electric Vertical Take-Off and Landing (eVTOL) and drones a major source of growth.
Expansion of battery technology relies on key metals like Nickel, Cobalt and Manganese which are vital to the production process. Battery technology has been improving over the years with efficiency and capacity increasing significantly and higher concentrations of Nickel has been crucial to producing high specification batteries. However, metal mining suffers from a poor reputation on ESG, and investors can do their part in supporting the industry to differentiate responsibly sourced metal and help cleaning up the industry.
Blockchain technology can play an important role in capturing supply chain ESG data and Global Palladium Fund, which is supported by NTree, offers a range of metals ETCs with a strong focus on ESG. It is also the first ETC provider to use Blockchain technology to record bar information into Distributed Ledger Technology thereby providing an extra layer of security and proof of ownership to the Issuer. The use of Blockchain is in addition to the traditional recording processes used by the custodian.
NTree International, which has expertise in investor education and the distribution of ETFs, promotes Global Palladium Fund in Europe and organised the webinar Battery Technology: An industry of the future? under its Metal. Digital brand with Hamad Ebrahim, NTree International Head of Research and Mark Copley, Associate Professor, WMG, University of Warwick.
Hamad Ebrahim, Head of Research, NTree International said: “Blockchain technology is a great way of using technology to capture supply chain ESG data and empowering consumers and investors to make a difference.”
Mark Copley, Associate Professor, WMG, University of Warwick said: “Lithium ION technology has long since moved from hype to bringing down costs. It is only going in one direction.”
Developments in electric vehicles have included the launch of the Mercedes Vision EQXX which has a driving range without recharging of 750 miles – effectively the length of the UK – while according to Mark Copley growth in eVTOLs is “exponential in the UK in terms of start-ups. There is an explosion of interest and developments in this area”.
Pricing of the key metals – Nickel, Manganese and Cobalt – generally tracks each other bar a surge in the cost of Cobalt in 2017/18 when investors worried about restrictions in supply and the price suffered extreme volatility making it harder for manufacturers to use.
Cobalt has also been the focus of ESG issues over the use of child labour in its production underlining the importance of blockchain technology to ensure rigorous standards are met. To watch a recording of the webinar go to https://www.brighttalk.com/channel/17849/
