EV battery use to fuel demand for Philippine metals

MANILA, Philippines — The Philippines is expected to derive dividends from higher consumption of metals used in batteries of electric vehicles (EVs) amid the global shift to electric cars, according to a report by Moody’s Investors Service.

Moody’s said the consumption of metals used in battery EVs would increase six-fold by the middle of 2020.

It also expects the penetration levels of these batteries to reach eight percent next year.

Metal used in the batteries of EVs are cobalt, lithium, nickel and copper.

Australia, Chile, Democratic Republic of the Congo (DRC), Indonesia, Peru and the Philippines have particularly large shares of these metals, the report said.

DRC is seen to reap the most benefits from this projected growth in metal consumption.

Moody’s said DRC’s cobalt production would represent more than half of its goods exports, and 133 percent of government revenue by 2030.

This is expected to transform the country’s fiscal and external profiles, even if partially realized.

However, governance and infrastructure deficiencies will significantly constrain the credit benefits to DRC.

The report also showed Chile and the Philippines are the next countries positioned to see the greatest potential economic and fiscal boosts from the rising demand for metals used in batteries for EVs.

“Chile and the Philippines, for instance, will experience higher GDP (gross domestic product) growth, government and export revenues, but without significant impact on the sovereigns’ credit profiles,” Moody’s said.