Lithium Becomes 900% More Expensive, And The Future Of Electric Cars May Be Affected

Written by Valdemar Medeiros

Published on 10/09/2022 at 13:35

Fábrica chinesa de baterias de lítio, mineral estratégico da transição energética. – AFP

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Lithium Suffered a 900% Increase in Just Two Years and the Expectation Is That It Will Continue to Rise. Studies Show That the Price of the Material May Impact the Future of Electric Cars.

The Lithium is not a rare material; however, its production is complicated, posing a real problem when trying to electrify a large part of the automotive industry. The price skyrocketed to absurd levels a few years ago, and the forecasts for a decline are not encouraging for the future of electric cars. According to estimates from Benchmark Mineral Intelligence, the price of lithium has increased by 900% since January 2020.

Increase in Demand for Electric Cars Affects Lithium Price

According to market analyses, in just over two years, the price of lithium has risen due to the increasing demand for electric vehicles in the global market, whose sales continue to expand month after month.

The Chinese government mandated that companies halt mining due to low hydropower production generated in recent months.

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Pressure from the Transition to Electric Cars Contributes to Lithium Price

As the global lithium supply is already inadequate, numbers indicate that it will intensify soon, impacting the future of electric cars. At the same time, Europe is applying pressure on the vehicle industry to implement changes and transition towards a more sustainable segment.

Starting in 2035, automakers will no longer be able to sell polluting vehicles, and before that, the European emission regulation Euro 7 will push to ensure that the road is already paved for electric or highly electrified cars to be more common on the streets.

The global context is generating a struggle to secure enough lithium to expand battery production and electric cars. Manufacturers are closing essential deals to secure lithium produced from certain mines.

Exclusive Agreements Reduce Available Lithium Supply

Volkswagen and Mercedes have taken positions in Canada, where there is an unexplored source of lithium. The problem, according to information from Benchmark and Cleantechnica, is that these decisions only add more pressure to the market.

Exclusive agreements mitigate the supply of available ore, and also new mines coming online need five to seven years to operate at full capacity. Some timelines have been announced for potential lithium mines located in Extremadura.

Lithium Becomes 900% More Expensive, And The Future Of Electric Cars May Be Affected

Lithium Suffered a 900% Increase in Just Two Years and the Expectation Is That It Will Continue to Rise. Studies Show That the Price of the Material May Impact the Future of Electric Cars.

Increase in Demand for Electric Cars Affects Lithium Price

Pressure from the Transition to Electric Cars Contributes to Lithium Price

Exclusive Agreements Reduce Available Lithium Supply

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Lithium Becomes 900% More Expensive, And The Future Of Electric Cars May Be Affected

Lithium Suffered a 900% Increase in Just Two Years and the Expectation Is That It Will Continue to Rise. Studies Show That the Price of the Material May Impact the Future of Electric Cars.

Increase in Demand for Electric Cars Affects Lithium Price

Pressure from the Transition to Electric Cars Contributes to Lithium Price

Exclusive Agreements Reduce Available Lithium Supply

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With an 88-meter wingspan, a capacity of 250 tons, six engines, and 32 wheels, the Ukrainian giant became the greatest symbol of extreme air transport and one of the most impressive machines in aviation history.

The United Kingdom removed approximately 1.8 million cubic meters of sand from the seabed and is depositing it all on 6 kilometers of beaches in Norfolk, in a mega-operation to curb erosion, protect coastal villages, and shield a vital gas terminal against the encroaching Atlantic.

After 16 years and almost 600 prototypes, a Chinese inventor unveils the world’s smallest and cheapest manned jet, at just 3.80 meters long and costing US$7.2 thousand in materials.

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