Financial Times posted an article on April 11, 2022, suggesting EV (electric vehicle) manufacturers may be rethinking lithium batteries. This however has nothing to do with the technology this time. Their contributor James Fernythough is concerned the lithium supply chain may be unable to sustain demand. Should EV makers have seen this coming?
Western Nations May Have Failed to Ensure Supply
Financial Times’ contributor suspects ‘There simply isn’t going to be enough lithium on the face of the planet’. However, Stuart Crow, chair of Lake Resources lithium producer in Australia blames a lack of forward thinking.
Whichever the case, the surge in demand is running ahead of the lithium supply chain. Daniel Morgan is a mining analyst at investment bank Barrenjoey. He told Financial Times ‘there’s a great love of throwing out lofty targets, but where the rubber hits the road it’s not going to happen.’
So where to from here? There’s growing enthusiasm among western nations to develop independent supply chains for scarce raw materials. However, the problem they face is the long lead time between discovery of new sources and delivery to market.
EV Manufacturer Tesla May Be Rethinking Lithium Sourcing
Elon Musk’s entrepreneurial spirit never seems to shy away from opportunity. Barron’s Ali Root posted an article on April 10, 2022 that may supply a clue. According to him, Elon Musk tweeted Tesla might get into the mining business to help resolve shortages. Will other auto companies move up the supply chain too, he wonders?
Supply and demand always seem to find equilibrium somehow. Currently the mechanism is price, with lithium cost per ton rising from $4,450 to $78,032 since 2012. There’s also the intriguing possibility of competitor technologies entering the market. Some EV manufacturers may already be rethinking their dependence on lithium batteries as we write.
Breaking News
Lithium-Carbon Batteries Hold Great Promise
