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Rising mineral prices could set back EV battery production

25 January 2023

Industry analysts from Bloomberg Intelligence have warned that rising prices of lithium, nickel and cobalt – all of which are essential for EV battery production – could become another setback in electric vehicle production. 

This is in addition to the ongoing shortage of semiconductor chips which has impacted vehicle production worldwide.

According to the Europe Autos 2023 Outlook report, produced by Bloomberg Intelligence, the cost of lithium along has risen to $75,000 (£61,000) per tonne since the beginning of 2021.

In light of the fast-paced EV revolution, the International Energy Agency forecasts that 50 new lithium projects, 60 nickel mines and 17 cobalt developments will be required to meet EV battery production demand by 2030.

Whilst manufacturers are taking steps to rely less on these minerals for EV battery production, they made up 58 per cent of all lithium demand in 2021.

Data analyst company Fastmarkets NewGen forecasts this figure will rise to 76 per cent in 2032, and that battery electric vehicle sales will reach 50 million units at the same time (a potential rise from 4.6 million units in 2021).

Its analysts have also predicted that, in the same year, Europe will represent 25 per cent of all lithium demand, whilst the US will represent 8 per cent.

Interestingly, Australia currently produces the largest amount of lithium. The mineral is extracted from hard rock mines, made into a concentrate and predominantly sent to China to be refined.

Contract hire and fleet management 

We at Marshall Leasing are always interested in the latest news about electric vehicles and EV battery production.

If you would like to find out more about how we can assist you with your fleet requirements, please get in touch with us at info@marshall-leasing.co.uk or by calling 01480 414541. Alternatively, please complete our contact form. 

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