EVs more than double Europe auto market share in 1Q

New European registrations of electric vehicles (EVs) rose sharply in the first quarter of 2020, bucking the downward trend in the continent's wider automotive sector and providing a robust demand signal for battery metals that is likely to be welcomed by suppliers facing multiple headwinds.

EVs accounted for 6.8pc of European vehicle registrations in January-March, up from a 2.5pc share a year earlier and at odds with the overall narrative of sharp economic decline amid the Covid-19 crisis. The market share for diesel vehicles fell to 29.9pc from 33.2pc in January-March 2019, according to data from the European Automobile Manufacturers' Association.

Registrations of electrically chargeable vehicles (ECVs) more than doubled over the period, rising by 100.7pc to 167,132 cars from 83,281 cars in the first quarter of 2019. There was also a rise in hybrid electric vehicle sales, which were up by 45.1pc to 232,525 cars.

Sales of ECVs were up in all of the largest European economies. In Germany, Europe's largest passenger car market, registrations were up by 124.9pc to 52,449. French ECV registrations increased by 144pc to 35,383. In the UK, which is now not part of the EU, ECV registrations were up by 118.9pc to 31,918.

Overall, January-March passenger vehicle registrations in the EU were down by 25.6pc year on year at 2.48mn cars.

EVs are a key consumer market for several metals like cobalt, nickel, manganese and lithium. While demand for cobalt has been falling from other markets, such as the aerospace industry, demand from the EV sector is set to remain robust if sales figures continue to rise. Argus last assessed chemical grade cobalt prices at $14.50-15.50/lb in warehouse Rotterdam on 7 May.

By Thomas Kavanagh