According to lithium manufacturers, the global supply of electric vehicles will soon be unable to meet demand. “You could end up in a crisis situation where the battery companies have no security for (lithium) commodities,” Lake Resources chairman Stu Crow said on the sidelines of this week’s Fastmarkets lithium and battery commodities conference in Las Vegas.
Mines that allow delays, labor shortages and inflation can all contribute to an undersupply of the battery metal. At stake is the pace at which electric vehicles can replace combustion engines, a key goal of energy transition advocates. “There’s a disconnect between the panic we’re seeing here and the frantic activity trying to secure supplies within the industry,” Crow said.
Producers warn of shortages
With aggressive EV plans from Stellantis, Ford and more automakers, lithium is one of the most sought-after metals in the world today. Albemarle, the largest lithium producer in the world, grows in North and South America, Asia and Australia. Still, the company expects global lithium demand to exceed supply by 500,000 tons by 2030. Other producers have slightly different forecasts, but all warn of an imminent shortage.
According to Fastmarkets, 45 lithium mines were operational worldwide last year. Eleven more are planned this year and seven more next year. According to experts, this rate is well below what would guarantee a sufficient global supply.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
