Chinese like electric cars

In November, many Chinese residents opted for an electric car. This is shown by the sales figures.

The electric vehicle market is showing momentum. Growth rates were very high in both the mass market and the premium market. For example, Chinese car companies such as Aito, Li Auto and Xpeng Motors were able to increase their sales figures by more than 100% compared to November 2022. Xpeng Motors even sold 245% more electric cars than in the same month last year. In Germany, on the other hand, just under 45,000 new electric cars were registered in November 2023, a quarter fewer than in November 2022. This was probably due to the expiry of the subsidy for commercial electric cars at the end of August. Overall, a good 18 percent of new registrations were equipped with an electrified drive system.

E-cars need lithium and cobalt, among other things, for their lithium-ion batteries. Lithium, also known as white gold, does not only come from China, but the country entered the lithium market very early on. China often has control over production in the producing countries. Dependence on China is not welcomed and so the US Treasury Department has taken action. Car manufacturers claiming tax credits for electric cars of up to 7,500 US dollars ("Inflation Reduction Act") have to take something into account. Namely, the batteries must not contain any components or minerals from a company that is at least 25 percent owned by a company affiliated with China. It is also hoped that this will lead to more investment in domestic battery supply chain projects.

Lithium can be found, for example, in Targa Exploration’s – https://www.commodity-tv.com/ondemand/companies/profil/targa-exploration-corp/ – projects in Quebec, Saskatchewan, Ontario and Manitoba.

Gama Explorations – https://www.commodity-tv.com/ondemand/companies/profil/gama-explorations-inc/ – also has lithium, as well as nickel and copper, in Quebec and the Northwest Territories.

Current company information and press releases from Gama Explorations (- https://www.resource-capital.ch/en/companies/gama-explorations-inc/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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