Record Lithium Price: Analysts Believe It Cannot Support the EV Revolution
A recent article published by Bloomberg mentioned that the meteoric rise in price of lithium in recent weeks has put significant pressure on automakers. This ore, which is at the heart of the design of current electric vehicle batteries, reached a record price of US$71,315 per ton on the Chinese market, which represents a rise of 1,150% compared to the historic low recorded in July 2020 during the pandemic. The trend is the same for cobalt and nickel, which could lead to an increase of around 15% in the price of batteries.
While we expected to see the price of electric vehicles decrease with the development of technologies, the increase in the value of the ore has rather the opposite effect. When we combine this effect with battery production that is always at a standstill, we obtain an industry that is struggling to deliver vehicles, hence the waiting times, sometimes in years, for many vehicles.
It is precisely for these reasons that Mercedes-Benz and Volkswagen recently signed a partnership with the Canadian government with the aim of securing the supply of raw materials needed to manufacture batteries for electric vehicles. Bloomberg mentioned in conclusion that the production of lithium could hardly be aligned with future demand.
Don’t put all your eggs in one basket
Bosch mobility manager Markus Heyn recently issued a warning to automakers that it’s not good to put all your eggs in one basket. In his opinion, the world needs a viable alternative to lithium-ion for the development of electric vehicles, the hydrogen fuel cell, in particular. Also according to Mr. Heyn, the world must take inspiration from the recent crisis, as the war between Russia and Ukraine deprived Germany of a supply of methane gas, which caused energy costs to rise to never before seen levels. In his view, automakers should diversify their technology offerings, but many automakers will respond that governments are forcing them to adopt technology.
Honda believes solid-state batteries will drive down the price of electric vehicles
On the Honda side, Dave Gardner, vice president of business and sales for Honda US, said it will be very difficult to display attractive prices for mass electric vehicles, unlike high-end models.
According to Mr. Gardner, the real revolution will come through solid-state batteries. These batteries will make it possible to offer electric vehicles at a more affordable price, comparable to internal combustion engine vehicles.
Dave Gardner admits that solid-state batteries (also called solid-state batteries) won’t be powering electric vehicles in the immediate future. Honda, like many others, is actively working on their development, having recently announced that it is investing $310 million in this technology.
Conclusion
It is difficult to predict the future, but manufacturers are almost all in search of supplies of raw materials and battery suppliers. As there is a marked increase in interest and sales of electric vehicles, an increase in demand for certain materials is to be expected, which will inevitably have consequences for many industries.
