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Lithium Price May Soar Even Higher On Supply Shortage: BL

Some analysts fear the jump in prices of lithium, a key constituent of batteries that drive electric vehicles, could cool people’s adoption of electric vehicles


A lithium production site is seen in South America. Lithium carbonate is now quoted at 197,500 yuan ($30,600), up 401% y-o-y and 325% this year. AFP photo.

 

Prices of lithium, a key constituent of batteries that drive electric vehicles, may increase further despite having soared 400% year­on-­year, a report in the Hindu Business Line said.

The surge in the prices of the mineral comes against the backdrop of a pickup in demand for EV battery materials, the report said, adding that this skyrocketing of prices may slow down people’s adoption of EVs.

UK- ­based Data analytics and consulting firm Global Data said in its “Thematic Research: Electric vehicle batteries (2021)” report that the core challenge for EV adoption is keeping the cost of a lithium­ ion battery as low as possible.

On the Trading Economics website, lithium carbonate is currently quoted at 197,500 yuan (around $30,600), up 401% year­-on-­year and 325% since the beginning of this year.

 

Read the full report: The Hindu Business Line.

 

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Kevin Hamlin

Kevin Hamlin is a financial journalist with more than 40 years of experience covering Asia. Before joining Asia Financial, Kevin worked for Bloomberg News, spending 12 years as Senior China Economy Reporter in Beijing. Prior to that, he was Asia Bureau Chief of Institutional Investor for ten years.

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