PRICES FOR BATTERIES SURGED
Prices for batteries have surged in recent months. The cost increase is being led by materials such as cobalt, nickel and lithium – all essential for the production of batteries. For example, the Lithium carbonate prices in China were at 492,500 yuan/tonne in September, a level not seen since prices hit a record-high of 497,500 in March of this year as soaring demand trends coincided with a supply crunch.
Fresh data from the Shanghai Metals Markets pointed to a 108% surge in carbonate imports in China, as the rebound in economic activity renewed demand for new energy vehicles. In the US, demand for electric vehicles is set to increase as the newly passed “Inflation Reduction Act” extends tax breaks for new electric vehicle purchases. On the supply side, the energy crisis in China brought by record-setting heat waves led multiple lithium producers in Sichuan to suspend operations, adding to the upside of soaring lithium costs in the near-term.
Source: TradingEconomics