Australia has a critical role in the global EV industry 

27.2.2024

There is enormous growth and opportunity in the global Electric Vehicle (EV) industry and Australia has a critical role to play in the future. According to Clairfield International’s H2 2023 Global Electric Mobility Sector update global EV sales grew 70% in both 2022 and 2023 reaching $US1,573 billion. One of the primary drivers behind this growth in demand? The falling cost of EVs, investment in battery innovation and gains in manufacturing productivity.

Mergers and acquisitions fuel growth  

Companies in the sector are looking to secure strong competitive positions in EV manufacturing and in battery technology. This has driven a 3% increase in M&A deal volume in the second half of 2023.

EV manufacturer Stellantis was the most prolific dealmaker, with seven deals ranging from their acquisition of 20% of Chinese EV manufacturer Leap Motor, to a Joint Venture in a battery recycling facility with Orano. Luxor Capital Group LP acquired Volta Trucks Ltd the UK based automotive company specialising in the manufacture of electric trucks. And, Emirate of Abu Dhabi, the UAE based emirate government, is to acquire 15% of NIO Inc, the China-based manufacturer of EVs. 

Volta manufacturers Electric trucks.  Australia has a critical role in the global EV industry
Volta manufactures electric trucks and was acquired by Luxor Capital Group LP

Battery technology and charging infrastructure  

The Chinese continue to dominate the EV battery industry. However, strong investment in battery and EV production in Europe and the US is helping companies in these regions become more competitive. This increase in investment is largely driven by aggressive Government incentives and regulatory reform in both regions.   

Market analysis indicates continued strong demand for passenger and commercial EV’s globally in the coming years. Cost reduction initiatives include continued R&D in battery technologies, as well investment in production innovation and charging infrastructure. Battery R&D includes a focus on solid state batteries which have many theoretical benefits over existing Lithium-ion. New chemistries such as sodium ion are also a top priority.   

Australia’s critical role in the global EV industry

The future of the EV industry is dependent on batteries. Batteries are dependent on the availability of raw materials, something which Australia has in abundance. In fact, more than half of the world’s lithium is already produced in Australia. This presents us with a major opportunity to target global battery manufacturers who require a secure supply of mineral raw materials. To succeed, Australia must focus on proprietary ownership of the methods and capability to locally produce battery-grade raw material. 

More than half the world’s lithium already comes from Australia

At the same time, we’ll continue to see a push for greater adoption of EVs in Australia. Like in other countries, the near-term challenge is to supply the infrastructure to support more EVs on the road. This not only includes the charging infrastructure, but clean energy to power it. This need will grow exponentially in the near term. It will require large amounts of capital investment to deploy clean energy generation and distribution infrastructure. 


30.10.2024

Employee Q&A: Anuk Manchanda

We recently sat down for a chat with Anuk Manchanda, our talented M&A Director here at InterFinancial. With over 12 years of solid experience under his belt, Anuk shares what drives his passion for M&A, how he builds meaningful client relationships, and the key lessons he’s picked up along the way. With a background that […]

Read more
30.10.2024

China M&A market briefing as of October 2024

The Chinese economy is undoubtedly undergoing fundamental shifts due to a combination of factors, including slowed economic growth, ongoing political tensions with the West, a large aging population and changing demographics. Since the beginning of 2024, the capital market in China has witnessed several significant shifts in various industries and sectors.   Sluggish IPO market; […]

Read more
30.10.2024

Becoming Investor Ready is more than a stroke of luck

Imagine if you had access to a crystal ball 2 – 3 years before you raise capital or sell your business. What insights would you seek to make sure you’re getting the best possible valuation? This foresight, if it existed, would be invaluable. It will allow you plenty of time to make strategic improvements, strengthen […]

Read more
30.10.2024

Sector dashboards October 2024

Our monthly sector dashboards are out! Our dashboards look at the valuation multiples across seven key sectors, each made up of a number of subsectors. The data takes into account the sale prices of similar companies based on; products, end markets, services, assets classes or other characteristics. The publications include all companies listed on the […]

Read more
29.9.2024

Sector dashboards September 2024

Our monthly sector dashboards are out! Our dashboards look at the valuation multiples across seven key sectors, each made up of a number of subsectors. The data takes into account the sale prices of similar companies based on; products, end markets, services, assets classes or other characteristics. The publications include all companies listed on the […]

Read more
29.9.2024

Investing in Consumer Goods and Retail: is it time to go shopping?

It’s been a challenging few years for Consumer Goods and Retail companies. The pandemic, supply chain disruptions, rising interest rates and cost of living pressures have all had an impact on profits in the sector.   Of course, some companies did quite well during the pandemic. Think online shopping, home delivery meal boxes and camping […]

Read more
17.9.2024

From lab coat to deal sheet: celebrating Michael Kakanis’ journey to Director

We’re thrilled to announce the promotion of Michael Kakanis to Director at InterFinancial and his recent appointment as Co-Chair of Healthcare at Clairfield International.   Michael’s journey is nothing short of inspiring. Working as a lecturer in Physiology and Biochemistry while completing his PhD in Immunology, Michael was all set for a long career in Academia. […]

Read more
03.9.2024

7 key challenges to overcome when investing in Australian renewable energy

Properly understanding the potential financial returns of an investment in the context of operations in the Australian Energy market  Renewable energy generation projects utilising solar, wind and battery technology find revenue sources from offtake agreements, arbitrage of wholesale electricity prices, providing grid stabilization services via mechanisms such as FCAS and by accessing green trading certificates […]

Read more
27.8.2024

Employee Q&A: Nasia Christodoulou

At InterFinancial, our strength lies in the passion and expertise of our talented team. Today, we’re shining the spotlight on Nasia Christodoulou, who joined us as a Research Assistant in January 2023 and has since progressed to Analyst. In this Q&A, Nasia gives us a glimpse into her daily routine, the challenges she overcomes, and […]

Read more