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Rising lithium prices could derail the EV boom 

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If they’re already struggling to get enough lithium when EVs have only a small market presence, where are the supplies for the massive planned EV expansion supposed to come from, and at what cost in already expensive machines? Mining operations don’t spring up overnight, and time is short if supply is to meet the expected demand from the manufacturers.
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As the price of lithium has skyrocketed over 400% in the past year, the demand for lithium-ion batteries appears more intense than ever, says AG Metal Miner @ OilPrice.com.

Lithium has earned the ‘white petroleum’ label due to its dramatic need for supplies from the rise of battery giga-factories, electric vehicles, powerwalls and energy storage businesses.

Battery makers including Tesla, Panasonic and LG Chem, have to budget for the rising cost of lithium. Batteries that go into electric cars require lithium. More battery makers will need to expand production to keep up with demand from electric cars.

“The demand for lithium-ion batteries is higher than ever,” said Chris Berry, President and strategic metal consultant at House Mountain Partners. “Lithium’s lightness helps it store a lot of energy which is very useful for electronics.” As the price has jumped to nearly $50,000 per ton, some battery manufacturers have raised prices.

Despite microchip shortages and changing demand from customers, the clean energy revolution appears well underway. Volvo Cars committed to putting one million electrified cars on the road by 2025. In addition, 50% of its sales volume will come from fully electric vehicles.

France plans to end sales of all gas and diesel cars by 2040. Whereas Germany has mandated that all new cars will go electric by 2030.

High grade lithium seems hard to find

The quest for EV manufacturers to get access to high-grade lithium appears challenging. The United States and other countries continue to look to disentangle their clean energy supply chains from China.

China currently serves as the leading lithium producer. Thus, an urgency to look in safe geopolitically friendly lithium-rich countries such as Chile has become important.

Continued here.

via Tallbloke’s Talkshop

 February 17, 2022 by oldbrew

Rising lithium prices could derail the EV boom