Key facts
- Electric vehicle sales have surged across much of Asia.
- Higher fuel prices resulting from the U.S.-Iran conflict are driving EV demand in Asia.
- China's EV market is experiencing a slump.
- The rollback of government subsidies in China is contributing to its EV market slump.
- Australian lithium producer PLS plans to increase its production by approximately 20%.
- PLS aims to achieve this production increase by fiscal year 2027.
- Hong Kong taxi and light bus drivers are calling for an extension of the LPG subsidy.
- Drivers warn that the expiry of the LPG subsidy will lead to increased operating costs.
Electric vehicle (EV) sales have seen a significant increase across many parts of Asia, with higher fuel prices, a consequence of the U.S.-Iran conflict, acting as a primary driver. This trend is contributing to a global uptick in EV demand.
However, the outlook for overall global EV sales growth is being tempered by a slowdown in China's EV market. This slump in China is attributed to the rollback of government subsidies that previously supported EV purchases. Despite this, other Asian markets are experiencing robust growth.
In parallel, the demand for key battery metals is spurring expansion in the mining sector. Australian lithium producer PLS has announced its intention to boost its lithium output by approximately 20% in fiscal year 2027. This move by PLS is indicative of a wider trend among Australian miners of essential battery metals, who are eyeing expansion to meet the growing demand.