Chinese EV maker NIO wants to produce more cars... so it invested in a small Australian lithium miner.
👉 Background: NIO is a Chinese electric vehicle company that launched back in 2014. It has created electric SUVs, sedans, coupes and even has an electric minivan on the way.
👉 What happened: In 2018, NIO listed on the New York Stock Exchange worth $1.8 billion USD. Like many EV makers, NIO is desperately trying to source lithium… because it needs to produce a hell of a lot of cars.
👉 What else: Now, NIO has invested $12 million into a small Australian lithium miner called Greenwing Resources...and lil old Greenwing saw its share jump over 70%.
💡Desperate lithium times call for desperate lithium measures. Rather than just partnering with lithium miners, EV makers are now jumping into bed with miners through significant investments.
💡It helps the lithium miners accelerate their lithium developments with bags of cash but it also means EV car makers could secure long term supply deals with hard-to-get resources.
Sign up for Flux and join 100,000 members of the Flux family