Tesla, GM Follow Own Shareholders With Push Into Lithium Miners – by Geoffrey Morgan and Esha Dey (Bloomberg News – March 7, 2023)


(Bloomberg) — As automakers seek stakes in lithium miners to lock in supplies for electric-vehicle batteries, they’re following a path already forged by their shareholders.

Take Tesla Inc., which is reportedly interested in buying Toronto-listed Sigma Lithium Corp. If Tesla succeeds, it would follow prominent funds including Manulife Financial Corp., 1832 Asset Management, Maven Securities, DZ Bank and several others that have been snapping up Sigma shares, even as they cut exposure to the electric-vehicle maker.

It’s not hard to see the attraction. Policymakers and governments around the globe have ratcheted up calls to move toward cleaner transportation and poured billions into developing EV infrastructure, which has caused the price of lithium — used in the batteries that power electric cars, buses and trucks — to skyrocket. In fact, lithium has been the top performing commodity in the past two years.

“Lithium offers investors an opportunity to get an exposure to the EV expansion at much lower valuations, and without ancillary exposure to a CEO selling billions of dollars in stock,” said Will McDonough, the chief executive officer of EMG Advisors, which runs the Element EV & Solar Battery Materials Futures ETF (ticker: CHRG) that invests in the futures of lithium, cobalt, copper, and nickel.

For the rest of this article: https://www.bnnbloomberg.ca/tesla-gm-follow-own-shareholders-with-push-into-lithium-miners-1.1892116