EV Industry Disappointed With New Lithium Supply | OilPrice.com

The last time lithium prices went down in tears a few years ago, due to expectations of the EVI revolution. At that time, the growth of production was accelerated as manufacturers increased their production. At present, lithium is almost exclusively used for transport electrification.

But this time it is different.

A.D. In 2015, when the previous lithium price hike began, Tesla was echoing the big news, big trucks were often in business as usual. They were making electric models, but nothing like the demonstrations of VW, Reno, GM and Ford likes last year or more. Now, cars plan to become all-EV in the near future according to government policies.

With such a plan by the world’s largest car manufacturers, the demand for lithium is set to enjoy a long procession. This motivates buyers to avoid long-term contracts.

According to Reuters this week, the price of lithium carbonate in China has increased by 276 percent since the beginning of the year, much to the chagrin of electric vehicles. In the first half of 2021, EVs — including plug-in hybrids and battery-powered cars — were made 7.2 percent From the global car sales. This is 4.3 percent compared to last year and 2.6 percent in 2019. The number is growing exponentially, along with the cost of lithium.

“Prices are up more than 230% today,” Benchmark Minerals Intelligence analyst told Reuters. “As a result, people are more likely to sign long-term contracts with 2022 break-ins,” added Caspar Raul. Price breaks refer to regular periods when commodity prices are re-negotiated.

Bloomberg last month Reported With the growing demand for lithium, buyers are not only opting for long-term contracts but also buying and supplying lithium minerals themselves. It’s too late.

In October, Bloomberg reported that Joe Lowry, an independent consultant and veterinarian in the mining industry, “is a vengeance like miners.” “The suppliers are in the driver’s seat, and they will stay that way for some time,” according to Morningstar forecasts.

In general, no one expects lithium litigation to end soon. But this is creating a new concern: that it will take a long time for affordable EVs to reach affordable prices with internal combustion engines. Their manufacturers need to achieve this balance so that they can push EVs instead of gas carriers, but all the battery prices are rising rapidly and that time is moving forward.

And this is not the only problem. Some are warning that lithium could be the new oil effectively, making some countries more dependent on imports rather than on their own.

China is currently the world’s lithium king, and this is certainly not good for decision makers in Europe or the United States. This new lithium mining project could inspire lithium wherever it is located in the United States but it is still doubtful how fast this new supply will come. Until the answer is found, lithium prices and EVA prices will remain high, and combined with current inflation, trade could delay global EV transfers.

By Irina Slav for Oilprice.com

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