How EV Batteries Are Reshaping the Stock Market and Global Commodity Prices

Most people think that the price of an electric vehicle is only affected by the battery. Investors know that’s only the beginning. Every battery requires metals. These metals must be mined, refined, transported and manufactured. Each stage creates winners and losers across the global economy. This means that the rise of EV batteries is not only changing transportation; it is also reshaping commodity markets, stock valuations and even the currencies of countries that are rich in battery materials.

In this article, I’ll explain how I think about this trend, and why I believe every trader, not just EV investors should capitalise on it. I will also share the exact methods I’ve used to profit from this ripple effect.

Why EV batteries matter more than most people Think

Global demand for electric vehicle (EV) batteries reached 1.2 Terawatt-hours (TWh), marking an increase of nearly 30%. EVs continue to dominate the broader battery ecosystem, accounting for over 70% of all global battery deployment.

Basically Roughly 3 out of 10 new cars bought globally this year are electric. Compare that to just five years ago when only 1 in 10 car buyers chose an EV. By 2030, the trend suggests that more than four out of ten new cars sold globally will be electric.

Since many households keep their older, gas-powered cars for a long time, the shift in what people are actively shopping for is massive, even though we are looking at this through the lens of ‘new car sales’ rather than ‘total households’

Image by author showing comparative cost between the two energy powers

It’s sudden demand mostly comes down to two major shifts.

First, China China China, it’s explosive adoption has tilted the global scales; over half of all new cars sold there are already electric.

Secondly, the massive drop in battery production costs means that car manufacturers can finally produce electric vehicles at a similar price to older petrol cars. In 2010, the average cost of manufacturing a battery was $1,474 per kWh; now, it has plummeted to just $103 per kWh.

All this matters because driving 10 miles with an EV motor would cost you roughly $0.53, whereas with a gas engine it would cost $1.40.

That’s said, it’s clear we are about to be caught up in a corporate struggle, and I’ll show you exactly how we can earn from it, and It’s not to the mines looking for lithium lol, it’s much worse

Now what does the typical ‘Uncle Sam’ have to say about all this

Here is how governments look at battery mining:

The Problem

Cars need special minerals(raw materials)to make batteries.

Currently, China, China, China as always has almost all the machinery to clean these rocks.

Other countries are scared that if that one country gets mad, it will stop sharing the raw materials, and nobody else will be able to make electric cars for cheap.

The Plans

• America and Europe: They are investing heavily in mining their own raw materials so that they do not have to buy them from anyone else.
• China: They are keeping their rock-cleaning machines a secret so that they can remain the dominant force in the car industry.
• Places with raw materials, such as Africa and South America, are saying: ‘No more selling our rocks cheaply. If you want our rocks, you have to build your factories in our towns and provide jobs for our people.’

Hmm, fair enough.

Image by author

As a forex trader what does all this information mean

The Stock Market

• The rock diggers (Mining company stocks): Companies that dig up raw materials such as lithium, cobalt and nickel are seeing their stock value jump up and down like a bouncy ball. If a country says, 'we found more rocks’, the stocks go up. If they say, 'No more digging,' the stocks crash.

• The traditional car Giants: Old car companies that only manufacture petrol engines are losing favour with investors. If they do not start buying battery minerals quickly, stock traders will treat them like old, broken toys that no one wants anymore.
• The Tech Smashers (Recycling Stocks): Wall Street investors are pouring millions into companies that are building big acid baths and battery-smashing machines. These recycling companies are seen as the new ‘secret gold mines’ because they don’t have to dig into the ground to find the materials.

Below are the main companies to watch in order to capitalize on their stock

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💱 The Forex Market (Trading Country Money)

• The Rock-Rich Money (Winning Currencies): Look at the Australian dollar (AUD) and the Indonesian rupiah (IDR). Because these countries sit on the largest reserves of lithium and nickel, and other countries must buy their currency just to pay for these resources. This strengthens and increases the value of their national currency on the global trading board.
• The Energy Shift (Losing Currencies): Countries that have become wealthy by selling oil for gas cars (such as some Middle Eastern nations) are gradually losing their long-term financial power. Forex traders are moving away from oil-backed currencies and investing in tech-backed currencies instead.
• The China vs. America Fight: Because China owns all the rock-cleaning machines and America is spending billions to build its own, the Chinese Yuan (CNY) and U.S. Dollar (USD) are constantly pushing and pulling against each other. When a new trade ban or tariff is announced, it acts like a miniature earthquake, shifting the exchange rates between these two massive currencies overnight. As a forex trader, it is your job to decide how to act on this nformation each time

The Ripple Effect on the global stage traders fail to notice before getting sucked in

A lot of changes are about to happen: employment rates and cuts, inflation, subsides, supply chains, trade wars, the list is endless. If you haven’t noticed it then congrats on finding this article cause you’d have been sucked in clean.

I’ve told you what you can capitalize on for the meantime above and what you can expect from the ripple effect. There’s more you can capitalise on, but you can only do so by thinking cognitively about the markets and asking yourself the right questions. For example,

• If the price of lithium doubles, who wins and who loses?
• How could higher exports strengthen a currency?
• What happens if commodity prices collapse?

Risks That Could Change Everything

1. Battery recycling: If corporations can capitalise on battery recycling more, it will take away the monopoly and burden of looking for new batteries, thereby stabilising the market.

2. Alternative battery chemistries: Just imagine if another element could replace lithium in batteries. That would dramatically change the market, but this can only be achieved through lots of research, time and funding, none of which most of these corporations and countries can afford to lose while others are making moves.

3. Alternative solid state battery: A solid-state battery is a new type of car battery that replaces the dangerous liquid inside traditional batteries with a solid piece of material, such as ceramic or glass. The three main advantages of this technology are:

✅ No more fires: As there is no flammable liquid inside, these batteries will not burst into flames or explode in the event of a crash.

✅ Super-fast charging: You can charge the entire battery in just 10 to 15 minutes, compared to the 30+ minutes it takes today.

✅Double the driving distance: These solid materials can pack twice as much energy into the same space, enabling cars to travel much further on a single charge.

Why You Can’t Buy One Yet; Right now, it is incredibly difficult and expensive to manufacture these batteries in factories without creating microscopic cracks in the solid material. Big traditional car manufacturers such as Toyota are investing billions of dollars in building the first large-scale production facilities to make these batteries, but it will likely be a few more years before they hit the roads in large numbers

4. OVERSUPPLY ; Oversupply in the sense that factory owners may build way too many batteries and mined too many minerals before regular people were ready to buy that many electric cars. Having too much inventory on the shelves causes a massive crash, it’s the basic law of demand and supply. Here is how oversupply can affect the EV battery boom:

♦ The Rock Prices Crash (Hurting the Mining Stocks)

When battery factories realise that they have huge stockpiles of unsold batteries sitting in their warehouses, they stop buying raw materials from miners. • The result: The market gets flooded with rocks. The price of lithium and nickel crashes.

• The damage: Mining companies lose all their profits, their stocks piece crash, and they have to close their mines and lay off workers because extracting the rocks is no longer profitable.

♦ Factory price wars (hurts the tech smashers and makers): because countries like China have built gigantic factories that can produce millions of batteries a day, they will start desperately fighting each other to sell their excess stock. • The result: Factories cut their prices lower and lower just to get rid of the batteries. •The damage: Smaller battery manufacturers and lesser-known recycling companies go bankrupt because they cannot afford to sell their products at a loss. Only the biggest and richest companies survive.

♦ Future investments freeze up

When Wall Street investors see battery companies losing money and failing because of price wars, they become fearful.

• The result: Investors stop funding new tech start-ups.

• The damage: The money needed to invent solid-state batteries or build brand-new recycling plants dries up, which slows down the future of clean energy technology as a whole. ‘…If all this doesn’t sound like the end of the world, then I don’t know what does…’ ~ Pere (author

5. Government policy: Uncle sam can literally just say, "we're gonna bomb your 401K if you import any Electric powered vehicle( in Trump's voice and hand gestures)"

Well you get the gist, governments of different countries can make different policies that either saturate or plummet the electric vehicle (EV) market.

What I’m Personally Watching

Image generated by AI

No more am I going to be a pawn in this corporate madness, I’m going to earn and beat these corporate moguls for a change. These are the signals I’ll be monitoring to achieve that:

→Lithium prices →Copper inventories →EV sales →Battery breakthroughs →Mining investments →Government incentives →Interest rates

And Tesla...yup, only to sell that is🙂

This obviously includes everyone and everything responsible for achieving that, such as companies responsible for battery research breakthroughs, distribution and storage companies, and countries responsible for exporting raw materials or increasing employment in jobs related to the EV breakthrough. As I said, the possibilities are endless, but these things personally serve as a base layer for me to track more opportunities.

Final thoughts

The next decade won’t be shaped by batteries alone. It’ll be shaped by everything batteries forced the world to change. As traders and investors, our job isn’t just to watch price charts. We must also understand the forces that create those charts in the first place. That's what seperate you placing a trade versus waging a gamble.

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Disclaimer: I make no guarantee concerning to the results contained in this article. To the maximum extent permitted by law, I disclaim all implied warranties of merchantability and liability if the information contained in this article proves to be inaccurate, incomplete or unreliable or results in any losses (investment or other losses). The use of the information in this article is at your own risk. In addition, you should never make an investment decision without consulting your financial adviser and conducting your own investment research and due diligence.