Demand For Electric Vehicles Is Growing Or Facing Supply Shortages

- Aug 12, 2017-

With the increase of the next few years demand for lithium-ion batteries, a lot of lithium companies have before the electric car sales surged to increase production capacity, but some analysts believe that the preparation of work may not be enough to meet the needs of the electric car market, which may lead to lithium mineral prices.

Analysts pointed out that, according to Reuters, some lithium deposits may take years or longer to adapt to the surge of production, this will require billions of dollars in funding, which part of the money from the long-term supply contracts.

Roskill, a market-research firm, says demand for lithium carbonate will rise to 785, 000 tonnes by 2025 from 2.27 million tonnes this year.Despite efforts to boost lithium production, the analysis predicts that there will still be 26,000 tonnes of supply a year by 2025.

The price of lithium carbonate could jump to $13, 000 a tonne from the current $9,000 a tonne, according to Benchmark Minerals Intelligence, a regulatory agency focused on the global battery supply chain.Lithium hydroxide, an alternative compound, is said to have higher energy density and longer life.So far, its price has risen from $9,000 a tonne to $13,000 a tonne.

Battery price decline seems to be for Chevrolet Bolt and tesla Model 3 sales paved the way, which makes the car manufacturer can on the price of $30000 to $40000 can achieve long-term profit of electric cars.Tesla has signed long-term contracts with lithium suppliers to keep its lithium ion plant Gigafactory running.But the company has not revealed how long it will last if its suppliers are in short supply, supply chain disruptions, these agreements and potential contingency plans.