L R AS Published on Tuesday 7 June 2022 - n° 407 - Categories:electric vehicles

Price increases for battery materials create uncertainty for EV sales

Chinese electric vehicle (EV) manufacturers are currently being challenged by continued increases in material prices, component shortages, and environmental factors that could erode consumers' ability to purchase new vehicles: demand for EVs is likely to

The cost of electronic chips is still ten times lower than the price of lithium batteries, but the former are rising fast as competition for materials and components is fiercer in China than in other countries.

The cost of electronic chips is still ten times lower than the price of lithium batteries, but the former are rising fast as competition for materials and components is fiercer in China than in other countries.

https://www.digitimes.com/news/a20220602PD207/automotive-ic-price.html?chid=13

Digitimes of 2 June 2022

Editor's note The rush for products representing the energy transition is so great that the world cannot meet the need. Hence the shortages and price hikes that reflect demand and at the same time hinder it. Either demand should be reduced or the production of raw materials should be increased. Only the second way would be the right one, but it takes time to produce.

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The International Energy Agency (IEA) has advised the automotive industry to diversify battery manufacturing and supplies of critical minerals, as the prices of raw materials such as lithium, nickel and cobalt have risen drastically: Between the beginning of 2021 and May 2022, lithium prices increased more than sevenfold and cobalt prices more than doubled. Nickel prices have almost doubled over the same period, reaching levels not seen for nearly a decade.

Demand for lithium-ion batteries is overwhelming, but the battery supply chain may not yet be ready. Mineral material shortages are a problem.

The surge in lithium prices is driven by demand from manufacturers of ternary batteries and lithium iron phosphate (LFP) batteries. The expansion of LFP battery production has been faster and larger than that of ternary batteries, mainly driven by Chinese battery manufacturers, who account for 99% of global LFP production.

The price of lithium has reached insane levels! There is no shortage of the element itself, as lithium is found almost everywhere on earth, but the rate of extraction and refining is slow," Elon Musk tweeted in April. By comparison, cobalt and nickel shortages are more worrying for the supply chain because of limited reserves.

Some governments and major car manufacturers have planned mechanisms for recycling lithium batteries while increasing production.

Global ternary batteries are mainly produced by Japan's Panasonic and South Korea's LGES, Samsung SDI and SK On, while LFP batteries are supplied by China's CATL, BYD and Gotion High-Tech.

https://www.digitimes.com/news/a20220530PD207/battery-lithium-battery-vehicle.html?chid=13

Digitimes of 30 May 2022

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