EV growth likely to be hampered as lithium prices surge 500% in a year

By Akshay Kedari  | Date: 2022-05-31

EV growth likely to be hampered as lithium prices surge 500% in a year

According to reliable sources, lithium prices have surged approximately 500% within just a year, which in turn could hamper the rapid expansion of electric vehicles and threaten the clean air movement. This development comes after battery components such as graphite, cobalt, and nickel were impacted due to the Russia-Ukraine conflict.

Back in 2012, lithium was priced at around USD 4,450 price per tonne which now accounts for USD 78,032 as of 2022. Sources confirmed that the demand for lithium has grown significantly following a slump during 2018-2020, reducing the mineral’s value by 50% and leading to a lack of investments in new supply sources, especially when EV demand was increasing.

While there is abundant lithium available in the ground, the time investment is currently a major setback for the surge in prices. The government is also likely to intervene to protect lithium supplies as major automakers would try to get hold of the lithium mining process directly to reduce costs, sources claimed.

On the positive side, this inflating lithium prices and scarcity of raw materials could result in the advent of new battery technologies, which see the use of a cheaper and more available alternative such as sodium-ion.

Amidst these trends, the German automotive giant BMW is reportedly working with a Chinese recycler that would dismantle retired batteries. The duo is expected to use the latest innovation to recover an additional percentage of raw materials from the retired EV batteries, which will then be used for producing new battery cells for the automaker.

India, meanwhile, has seen a surge in demand for passenger cars that run on CNG (compressed natural gas) amidst inflating fuel prices and various turbulences in the EV segment. Domestic CNG passenger car sales have doubled to 27,000 units from the previous year.

Source Credits –

https://auto.hindustantimes.com/auto/electric-vehicles/lithium-prices-surged-by-nearly-500-in-a-year-posing-threat-to-ev-growth-41653876272957.html

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More >>

More News By Akshay Kedari

Tesla lays off 200 hourly workers as it closes its California office

Tesla lays off 200 hourly workers as it closes its California office

By Akshay Kedari

Tesla Inc. reportedly closed its San Mateo, California office to expedite cost-cutting and has let go nearly 200 workers who functioned on its autopilot driver-assistant system. Most of these employees were compensated on an hourly basis. Earlier ...

Around 2,900 Ford Lightning pickups recalled over software-linked issue

Around 2,900 Ford Lightning pickups recalled over software-linked issue

By Akshay Kedari

The recall covers 220 units of the electric pickup trucks in Canada and 2,666 units in the US. Ford has refused to accept any more orders and declared the EV sold out for 2022. Ford Motor Company has reportedly recalled the first batch of ...

Coca-Cola ranked the most powerful brand in U.S., as per the BSI score

Coca-Cola ranked the most powerful brand in U.S., as per the BSI score

By Akshay Kedari

The Coca-Cola Company, an American multinational beverage corporation, has reportedly secured a Brand Strength Index (BSI) score of 93.3 out of 100, making it the strongest brand in the USA, according to a TradingPlatforms.com analysis of the iconic ...

FDA to order Juul Labs to pull its e-cigarettes from the United States

FDA to order Juul Labs to pull its e-cigarettes from the United States

By Akshay Kedari

The U.S. FDA (Food and Drug Administration) is reportedly planning to instruct Juul Labs Inc. to stop supplying its e-cigarettes in the country. Shares of Altira, which owns a 35% stake in Juul Labs, fell to 8.5% after the latest development. For ...

E-comm to offer USD 8 Bn opportunity for digital ads in India: Report

E-comm to offer USD 8 Bn opportunity for digital ads in India: Report

By Akshay Kedari

According to a recent study, e-commerce platforms are currently India's fastest-growing digital advertising medium and are expected to offer around USD 8 billion worth of opportunities by 2030. Roughly 300-350 million new online customers from ti...