Highlights
- The number of electric vehicles (EVs) in Australia is likely to grow as cheaper models turn up and efficient charging infrastructure widens.
- As per Australian Renewable Energy Agency, EVs could match petrol vehicles on upfront range and price by mid-2020s.
- EV-focused stocks like Novonix (ASX:NVX), Ampol, Rectifier Technologies and Magnis Energy are worth watching out for.
In today’s fast-paced contemporary world, there is no country that is not talking about electric vehicles (EV). The ‘plug-in and charge’ vehicles have become the go-to devices today when it comes to believing in sustainable resources of energy.
As per Resources and Energy Quarterly December 2022, sales, and production of EVs have continued their rapid growth trend, despite weakening global economic conditions. So much so, global sales of all types of EVs increased 40% in the nine months to September 2022 compared with the same period in 2021. The report further forecasts EV passenger car sales to rise from 6.8 million units in 2021 to 17.6 million units in 2024.
In Australia, the electric vehicle market is relatively still undeveloped. However, it brings a big opportunity for energy companies to lead the transition. On the back of this developing theory, let us look at some ASX-listed stocks that remain focused towards the electric vehicle market. The stocks feature Novonix Limited (ASX:NVX), Ampol Limited (ASX:ALD), Rectifier Technologies Ltd (ASX:RFT) and Magnis Energy Technologies Ltd (ASX:MNS). Let us skim through their recent developments and share price performance on the ASX.
Novonix Ltd (ASX:NVX)
One of the hottest electric-energy stocks on the ASX, Novonix is a Brisbane-based developer and supplier of high-grade graphene-based anodes for the lithium-ion battery industry. The company sells in 14 countries and has operations in the USA and Canada.
In December 2022, the company provided an update on scaling US production of synthetic graphite anode materials. It entered a deal with KORE Power to supply graphite anode material. A strategic partnership, the deal is likely to accelerate the lithium-ion battery supply chain system in Northern America. In November 2022, KORE closed the initial US$75 million of strategic financing from Siemens Financial Services to support the construction of the KOREPlex facility in Phoenix. The facility could start production in Q4 2024. Consequently, Novonix stated that it is expanding production at its Riverside facility in Chattanooga, to fulfil KORE’s requirement.
When it comes to the recent share price performance of the company on the ASX, Novonix has shed 8.43% in the last one month of trading. In the last six months, shares have lost 25.23%. During the previous year, NVX shares tumbled by 82.77% while on a year-to-date basis, they have gained 15.60% (as of 11:36 AM AEDT, 11 January 2023).
Ampol Ltd (ASX:ALD)
Petroleum firm Ampol Limited is one of the largest transport energy distributor and retailer in Australia, with over 1,900 Ampol-branded stations.
The company has pledged to bring over 100 fast-charging bays at around 19 AmpCharge sites. This year, it expects to begin detailed design work on AmpCharge sites.
In October 2022, Ampol shared its unaudited results for the nine months ending September 2022. It is heading in the right direction to deliver full year earnings of more than AU$1 billion.
On the ASX, shares of Ampol have gone up 0.92% in the last one month. In the last six months, they have lost 17.32% and in the last one year of trading, Ampol shares have shed 7.84%. On a year-to-date basis, they have shed 1.04% (as of 11:34 AM AEDT,11 January 2023).
Rectifier Technologies Ltd (ASX:RFT)
This Australian firm develops and manufactures high reliability power conversion products and deals in the sectors of electric vehicle charging, defence, oil & gas, utilities, and telecom.
In November 2022, Rectifier Technologies announced that it has product purchase orders from i-charging mobildade electra SA (worth US$22 million) for supply of a customised version of the RT22 charger module for the blueberry range of DC Fast Chargers. Orders are expected to be accomplished before 2023 ends. RT22 is a power supply module used in DC electric vehicle chargers and each RT22 is capable of delivering 50KW of power.
Meanwhile, the shares of the company have lost 20% in the last one year of trading on the ASX. In the last five years, they have gained 100% (as of11:29 AM AEDT, 11 January 2023).
Magnis Resources Ltd (ASX:MNS)
Headquartered in New South Wales, Magnis Energy claims to have strategic assets, investments, and tech interests in crucial components of the international lithium-ion battery value-chain. Magnis’ subsidiary Imperium3 New York operates a lithium-ion battery plant in Endicott.
On 3 January 2023, Magnis provided an update on its NY Lithium-ion battery plant. According to the company, the certification of lithium-ion batteries has progressed and HSBC has been appointed to assist with the funding to support the expansion to 38GWh. Magnis has a direct and indirect interest of over 60%.
On the ASX, MNS has shed 3.66% in the last one month of trading. However, in the last six months, the stock has gained 31.67%. In the last one year, shares have lost 26.85% and on a year-to-date basis, MNS has moved up 3.95% (as of 11:30 AM AEDT, 11 January 2023).