In the ever-evolving landscape of electric vehicles (EV) and battery technology, strategic partnerships and geographical considerations are key to an investor’s portfolio. When it comes to capitalizing on these factors, one company worth a second look is Pan Asia Metals Limited (ASX:PAM).
What sets PAM apart? It’s the only company with firm exposure to Thailand and Vietnam, emerging as prime locations for the burgeoning EV industry. Why are these locations significant? The answer lies in the ambitious strategies of BYD, the world’s largest EV manufacturer, backed by the legendary investor Warren Buffet.
In recent years, BYD has been making significant inroads in the global EV market. It’s currently building its first overseas production facility in Thailand and planning vehicle production in Vietnam. This expansion aligns with BYD’s projected production of 3.7 million EVs and PHEVs in 2023, surpassing Tesla‘s expectation of 2.0 million EVs.
In fact, BYD’s exponential growth is such that it sold 1.86 million new energy vehicles in 2022 alone, more than the total of the previous four years combined. Moreover, it has doubled its global workforce to around 570,000, surpassing Toyota Motor Corporation, the current No.1 automaker. It’s worth noting that BYD recently overtook Volkswagen Group as China’s largest vehicle seller and has become the leading clean-car brand in several countries, despite only starting to export passenger vehicles in 2021.
BYD’s success is attributed to its ability to offer a full range of new energy vehicles, from the affordable Dolphin with a 300km range to the luxurious Yangwang U8 SUV, a faster, amphibious vehicle aimed at rivaling Range Rover and McLaren. Such diversity in offering appeals to a broad customer base, as evident in Blue Bird Group, Indonesia’s largest taxi operator, choosing BYD over Tesla for its fleet of 500 EVs.
As BYD’s global influence expands, its interest in the US market is tepid at best, signifying its strategic focus on dominating markets closer to home. This regional focus is where the significance of PAM’s position becomes apparent.
PAM is the only lithium development company worldwide with assets in both Thailand and Vietnam. Its Thai venture, a Concentrate to CAM initiative, is engaging in discussions to supply cathode active materials to the thriving Thai LIB and EV sector. Its Vietnamese venture, an MOU with VinES (a sister company of VINFAST exporting EVs to the US), aims to produce lithium chemicals for VinES and third parties. Both initiatives are currently in the feasibility stage, with pre-feasibility studies due later this year.
In conclusion, as the demand for new energy vehicles continues to surge, PAM’s unique position within the burgeoning markets of Thailand and Vietnam, alongside the growth of global EV giants like BYD, indicates a promising horizon. For investors seeking to ride the wave of the EV revolution, PAM’s strategic initiatives and geographical advantage make it a compelling consideration.
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