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Never Mind Threats to Power Grids, Fires, Recalls, Other Issues, It’s Rising Lithium Prices that “could derail the EV revolution”
SEPTEMBER 17, 2022
By B.N. Frank
Electric vehicles (EVs) have been associated with threatening power grids (see 1, 2), fires (see 1, 2, 3, 4, 5, 6, 7, 8, 9), health and environmental issues (see 1, 2, 3, 4, 5, 6, 7), and high costs (see 1, 2, 3, 4) In fact, a survey published in July revealed that many Americans are still not interested in owning or leasing them because of costs and of course, other concerns as well. Those basing their decision strictly on cost may be not interested for a while longer.
From Zero Hedge:
Lithium Prices Hit New Record As EV Affordability Concerns Mount
by Tyler Durden
While California banned the sale of new gas-powered cars by 2035, and the Biden administration unveiled $900 million in new funding to build electric vehicle charging stations, rising lithium prices could derail the EV revolution.
The progressive view is that EVs will save the planet from catching on fire because green vehicles would eliminate the harmful carbon emissions of fossil fuel vehicles. Though a widespread rollout of EVs depends on affordability, and EVs are way more expensive than gas-powered.
Bloomberg reported lithium carbonate, a key metal in EV batteries, hit a new record high in China this week. Per ton, prices jumped to 500,500 yuan ($71,315), more than triple the price versus last year.
The global surge in lithium prices has increased the cost of EV batteries. Tesla hiked vehicle prices several times this summer (see: here) because of rising battery costs.
A steady increase in demand for global EVs combined with a recent power crunch in Sichuan province, a region that produces 20% of China’s lithium production, resulted in the disruption of output and tighter supplies, hampering an already-squeezed global market.
Research firm Rystad Energy said a second energy crisis could materialize in China this winter when heating demand soars:
“This could lead to new power shortages and hit lithium operations,” it noted, expecting lithium prices to stay elevated for the rest of the year.
Soc. Quimica & Minera de Chile SA, the world’s second-largest lithium producer, warned investors Thursday of a “very tight market” in the years ahead and sees higher prices.
The expectation that EVs would become affordable for the masses is a distant pipedream because of the high costs associated with battery production.
At least half of an EV battery includes lithium, nickel, manganese, and cobalt, four metals that have surged this past year. Also, let’s not forget China controls the world’s rare earth mineral trade…
The surge in lithium prices and other critical metals for EV batteries is a significant concern that could derail the EV revolution due to affordability concerns.
Despite ongoing and increasing issues associated with EVs, EV mandates are being considered and/or introduced in at least 17 states and the Biden Administration recently approved the first $900M for building charging stations.
Activist Post reports regularly about EVs and unsafe technology. For more information, visit our archives and the following websites:
- Wireless Information Network
- Electromagnetic Radiation Safety
- Environmental Health Trust
- Physicians for Safe Technology
Top image: Pixabay
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