The EV Charging Industry Is Booming

If you’re one of the millions of Americans who commute to work, you’ve noticed the price to fill the tank has gone up exponentially.

With gas prices rising, consumers foreign and domestic are demanding a new solution.

That solution is electric vehicles, or EVs.

Globally, sales for EVs shot up 160% in the first half of 2021.

To meet this increasing demand, major auto manufacturers such as Ford, Volkswagen, and Toyota have plans to reveal several EV models in 2022 and beyond.

Considering all the factors, you might think this is an endorsement for buying stock in an EV manufacturer like Tesla (NASDAQ: TSLA).

Smart investors will see the bigger picture here, and that is the EV charging industry.

After all, EVs need to power up somewhere, and not everyone has the facilities to charge at home.

Be a smart investor and learn how to play the EV charging market.

Rapidly Increasing Consumer Demand For EVs

Consumer demand for EVs surged in 2021, and should continue on that trajectory in 2022.

But what is driving more consumers to go with an EV over a traditional gas-powered vehicle?

Here are six reasons for this phenomenon.

1>More Options
A decade ago, Tesla models were one of the only recognizable and functional electric vehicles available. Today almost every major manufacturer has at least one EV model.

Ford, Toyota, and other car manufacturers have seen rising demand for EVs and responded by adding over 500 new models for 2022.

As more EVs enter the market, consumers will benefit from the competition between manufacturers. The more options there are, the more affordable EVs will become.

Constructing EVs has also become less expensive. Since 2010, EV battery prices have dropped over 86%, making it cheaper than ever to mass-produce EVs.

2>More Juice in the Tank
When thinking about buying an EV, one of the big drawbacks for consumers was EVs’ lack of range. The big fear revolved around being stranded in an area without an EV charging station.

Some of today’s EVs can now travel distances nearly identical to conventional vehicles. Some models can already reach 239 miles with a single charge.

3>Lower Operating Cost

No more oil changes, checking engine lights, and other common maintenance combustion engines require.

Your standard gas-powered vehicle has far more moving parts than an EV, which means you’ll potentially pay less to keep an EV running.

4>Purchasing Incentive
To stimulate EV purchases, world governments, including the US, offer consumers tax and purchase incentives. The Biden administration’s Tax incentives for EVs max out at $7,500.

Some incentives include the purchase of hybrid vehicles, which use a combustion engine and an electric-powered motor.

Coupled with tax incentives are sustainability incentives, more people are noticing the effects of climate change, and EVs are a way to help reduce GHG emissions. However, it should also be noted that EVs require the mining of so-called “transition” metals such as copper, lithium, nickel, cobalt, and cadmium to build.

No matter your personal belief on the issues, this sentiment cannot be ignored if you plan on investing in the EV market.

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A Rapidly Expanding EV Market

Consumer demand for affordable EVs will soon be met by the ever-expanding EV market.

From 2010 to 2019, the number of EVs available globally went from 1,700 to 7.2 million.

As more and more EVs hit the roads, they’ll need more charging stations around the world.

Smart investors will keep an eye on the EV charging industry as it expands with consumer demand for EVs.

The Rise of Faster Charging

Another big drawback for some consumers thinking about buying an EV is the time it takes to charge EV batteries..

A typical fill-up at a gas station takes a few minutes, whereas an EV take 30 mins to several hours to reach full charge.

Now, with newer, fast-charging technology an EV can regain 60-80 miles worth of charge in about 20 mins.

Unfortunately, this super faster-charging technology isn’t available at every charging station yet.

In 2019, there were about 30,000 fast-charging stations around the world, but this number should grow to 227,000 by 2025.

Now is the best time to find a way into the EV industry, and we’re here to show you the way.

Where Should You Invest?

With all the advanced technology that goes into EVs and EV charging stations, you would think your best investment would be in a manufacturer.

But we’re here to show you a way to invest in the EV charging industry that maximizes your chances of a significant return.

When you break down most pieces of advanced technology, you’ll notice a lot of the same materials, but a few in particular.

One that stands out is copper. Its conductive properties make it essential to EV batteries and charging stations.

To showcase how electric vehicles affect copper demand, let’s analyze some numbers.

It would take 83 metric tonnes (MT) of copper to create 1,000 EV batteries.

For comparison, conventional vehicle battery production would require about 23 MT of copper.

And although charging stations don’t require as much copper as batteries, they’re estimated to play a big role in future copper demand.

Some estimates say by 2030 there will be over 20 million charging stations available, contributing to an increase of 250% more copper than in 2019.

All signs point to a steady demand for copper, a ripe time to invest.

Finding copper stocks is easy.

But finding the one that’ll make you the most profit?

You might need some help with that.

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Looking to get the most out of your investments? The small-cap market is full of companies with real potential to boom, but it’s also rife with companies with the potential to bust. How will you navigate between the two? By joining Dear Retail Investors.

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