Albemarle: Weak lithium prices could slow EV revolution
2021-01-15 09:25:59 [Print]
Global supplies of lithium used to make electric vehicle (EV) batteries will fall short of projections for demand to more than triple by 2025 if prices do not rebound to fund expansions, an executive at industry leader Albemarle Corp said on Tuesday.
The warning laid bare the tension emerging in the EV industry between the companies that supply the lithium crucial for battery development and automakers who are hunting for discounts.
Prices for lithium dropped last year due in part to the COVID-19 pandemic, forcing Albemarle and peers to pause expansions, a step they will reverse only if the price is right, said Eric Norris, who runs Albemarle's lithium business.
Prices have started to inch higher, especially in China, the world's largest EV market, but must rise at least 10% more in order to make any expansions worthwhile, Norris said.
The warning laid bare the tension emerging in the EV industry between the companies that supply the lithium crucial for battery development and automakers who are hunting for discounts.
Prices for lithium dropped last year due in part to the COVID-19 pandemic, forcing Albemarle and peers to pause expansions, a step they will reverse only if the price is right, said Eric Norris, who runs Albemarle's lithium business.
Prices have started to inch higher, especially in China, the world's largest EV market, but must rise at least 10% more in order to make any expansions worthwhile, Norris said.
Lithium Carbonate 99.5%min Delivered EU
Unit:USD/kg
China lithium carbonate 99%min producers' output statistics by province by month
Unit: mt
