Could higher global EV sales boost ASX 200 lithium shares?

Electric vehicle (EV) sales could grow faster than expected, according to new global analysis.

ASX 200 lithium shares that may be impacted by electric vehicle demand include Core Lithium Ltd (ASX: CXO), Pilbara Minerals Ltd (ASX: PLS), and Sayona Mining Ltd (ASX: SYA).

Let’s check the latest outlook for electric vehicles.

What’s ahead?

Lithium is used in EV batteries. More demand for EV’s can weigh positive on both the lithium price and investor sentiment in lithium shares.

New analysis from EY Global tips EV sales in the US, China, and Europe to “outstrip” all other engine sales by 2030. This is three years earlier than previously forecast.

EY predicts by 2040, internal combustion engine vehicles could shrink to less than 1% of all sales. EY Global Advanced Manufacturing & Mobility Leader Randall Miller said “the EV revolution continues to gain momentum” despite finance and energy headwinds in the last 12 months.

Commenting on the outlook for multiple regions, Miller added:

In Europe, car sales in general are down and we would expect the move over to EVs to potentially struggle if the energy crisis persists. This would require more government assistance to maintain the current pace.

In China, while we expect EVs to dominate sales by 2032, we also see hybrids sustaining their market share all the way up to 2050.

In the US we see large population states leading the way, so there remains cause for optimism in meeting the 2030 target for 50% of sales being EVs. 

A recent KPMG report was also positive on EV sales, as my Foolish colleague Tristan reported yesterday. The report stated:

The pace of EV sales is increasing with nearly half of the current stock of EVs sold in the last year. But the transition away from fossil fuels will continue to require a rapid increase in the number of EVs manufactured.

Global passenger plug-in EV sales grew by 46% compared to a year ago with 1.06 million new electric cars registered globally in November, Inside EVs reported overnight.

In Australia, 33,410 new full-battery EVs were sold in the 2022 financial year, The Driven reported recently.

Core Lithium has recently shipped its maiden lithium oxide consignment from its Finniss Lithium project in the Northern Territory to a customer in China.

Pilbara Minerals produces lithium from the Pilgangoora Project in Western Australia. Pilbara recently sold two cargos of spodumene concentrate to Chinese buyers for an average price of US$7,552 a tonne.

Sayona Mining is planning production from its North American Lithium operation in 2023.

Share price snapshot

The Core Lithium share price has soared 82% in the last year.

Sayona Mining shares have rocketed 73% in the past year.

Pilbara Minerals shares have gained 10% in a year.

The post Could higher global EV sales boost ASX 200 lithium shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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