Tuesday, October 4, 2022
News Lithium Prices are Higher than Ever due to the Demand for EVs

Lithium Prices are Higher than Ever due to the Demand for EVs

Lithium now costs three times as much per ton as it did a year ago.

  • Lithium prices have tripled over the last year

  • This is due to the increase in sales of EVs, especially in China

  • The lithium producers are still struggling to increase their output

The price of lithium has hit a new record today, with the ton costing $71,315 in China, which is about three times as much as it was a year ago.

This massive increase is apparently due to the combination of two factors. Indeed, electric vehicles are getting more and more popular while lithium producers are faced with production constraints.

Both of these elements are even more true in China since the country is home to the largest automotive market in the world as well as all of the major lithium producers.

According to the China Passenger Car Association, there could be as many as 6 million electric vehicles sold in China this year, which is almost twice as many as were sold in 2021.

This means that the demand in lithium, the key element in EV batteries, is exploding at the moment, with automakers buying all of the lithium they can get their hands on.

At the same time, companies that mine and refine lithium are operating at their maximum capacity and many of them are trying to expand their capacity by opening new mines and facilities.

To make matters worse, frequent electricity cuts affected the Sichuan province, where one-fifth of China’s production of lithium takes place, for two weeks in August, further reducing the supply of the mineral.

Following the laws of supply and demand, the price of lithium is skyrocketing and establishing new records.

The government of China is said to have held a meeting with lithium producers in order to stabilize the price of the resource and discourage collusion between the larger companies.

Of course, this large price increase is passed on to buyers of electric vehicles, which are still much more expensive than comparable vehicles powered by gasoline or diesel.

Trending Now

The Jeep Wrangler Soldiers on Without the EcoDiesel Engine From Next Year

A final Farout Edition will close order books on the 3.0L diesel engine. The EcoDiesel will no longer be offered with the Ram...

Last Lamborghini Aventador Leaves Sant’Agata Factory

Lamborghini's best-selling V12 says farewell Last car is a 780-4 Ultimae Roadster in custom blue Is it a vent? Is it a door? All...

Volkswagen Canada Removes Features from 2023 ID.4 Option Package Due to Part Shortages

The Statement package loses a few components. The price is reduced to reflect the package’s new content. This isn’t exactly the end of the...

The New Lamborghini Urus S Gets 666hp

This Urus needs only 3.5 seconds to reach 100km/h from a standstill. The engine tune is borrowed from the Urus Performante. Ultimate super SUV...

A Slight Restyle for the 2023 Toyota Corolla Hatchback

Toyota has just made the first major changes to its Corolla Hatchback lineup for 2023. Recall that Toyota had already revealed its plans for...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.