[Johannesburg 10th Reuters]-Rating major Moody ’s will increase the demand for metal used in batteries for electric vehicles by 6% if electric vehicles account for 8% of road traffic by the mid-2020s. Released a research note that may
According to Moody's, the global shift to electric vehicles could boost demand for cobalt, lithium, nickel and copper. The Democratic Republic of the Congo, the world's largest producer of cobalt, will benefit, but political weaknesses can lead to investor concerns and undermine potential.
Other countries that would benefit include Chile, the Philippines, Peru, Indonesia, and Australia.
Moody points out that the battery boom may lead to a sovereign rating upgrade in Congo. This is because the amount of metal produced is “very large” compared to the economic scale.
On the other hand, he pointed out that very weak governance, poor infrastructure, and social instability continue to be the main obstacles to foreign investment, restraining production growth. The growing interest in the environment also showed the view of risks for the Congo.