Tuesday, March 21, 2023

"Lithium prices in China halve in just four months"

To paraphrase Elon Musk, mining lithium is not a bottleneck, and refining and fabricating are not yet a problem but probably will be.

From Bloomberg via Mining.com, March 21:

The frenzy for lithium, which saw Chinese prices of the electric-vehicle battery material surge more than 1,300% in just two years, has turned into a rapid retreat.

Prices of lithium carbonate, the benchmark product, have halved since rocketing to a record last November, according to data from Asian Metal Inc. That reflects two major pressures: the prospect of much more global supply coming online this year, and signs that the breakneck growth of China’s EV sector is starting to moderate.

“Lithium carbonate prices saw a greater rate of decline as greater supply growth outlook for the year coincides with weaker demand sentiment,” according to a BloombergNEF report this month.

The two-year price surge in lithium and other battery materials jolted the EV-supply chain and sparked a scramble by battery manufacturers and carmakers to lock in supplies.

While the decline of lithium prices offers some cost relief to automakers and battery manufacturers squeezed by soaring costs, the raw material remains at still-lofty levels compared with its lows in 2020.....

....MUCH MORE

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