With demand for electric vehicles on the rise, and production bans for petrol and diesel cars in some key markets on the horizon, one of the essential metals required to fuel this mobility boom, has been surging in price lately.
As shown by price tracking from Trading Economics, Lithium carbonate, essential for the production of the batteries used in EVs, has experienced a meteoric rise in cost over the last few months – being traded consistently above the 450,000 Chinese yuan/tonne mark since February.
With the current global supply chain issues and demand forecast to rise aggressively over the next few years, producers of electric vehicles are now under increasing pressure to maintain their pricing models, while also facing down significant hurdles to meet their production goals. Worse still, analysts are predicting new lithium price highs around the corner, not the relief that the motor industry so desperately needs.
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