HOTTER ON METALS: Lithium faces challenges in EV battery race
Lithium has hogged the top spot in EV batteries for some time, largely due to
its early adoption in technology developed by Tesla. For more than a
decade, the US-based company has been using lithium-ion batteries to
develop and produce all-electric vehicles as well as clean energy
generation and storage products.
But challenges to its position have emerged from other materials - which were already being used along
with lithium in the cathode part of the battery cell - such as cobalt,
nickel, manganese and iron. The makeup of the anode, by contrast, is
graphite, but there is also a potential challenge here.
Lithium Battery Cell voltage These threats have emerged as the lithium supply chain comes under increasing
pressure amid a race by automotive manufacturers to meet
ever-tightening environmental regulations and join the EV revolution.
The North American International Auto Show in the US state of Michigan this
month has seen a number of announcements from companies that
dramatically increase the total of EV and hybrids planned over the next
several years.
Battery-grade lithium carbonate prices stand at $18.50-20 per kg on a cif China, Japan and Korea basis, according to
Industrial Minerals' latest assessment on Thursday January 18, up from
$18-20 per kg at the beginning of November.
If the status quo in battery technology remains, lithium supplies will start to come under
severe pressure, giving prices an additional lift. However, given the
plethora of mining projects in the works, the market may eventually move
into surplus.
Future lithium supplies have been even more assured following the recent ruling in Chile - ending a spat between the
government and major producer SQM over royalties - that will allow the
company to significantly expand production.
But technology is adapting, particularly in a drive to improve costs, meaning the current
makeup of EV batteries is changing. Supply-demand fundamentals of the
competing EV battery materials will be important in determining which
wins, as will the relative properties of the various materials and their
suitability for use.
