Skip to comments.Electric Car War Sends Lithium Prices Sky High
Posted on 02/23/2016 4:00:07 PM PST by bananaman22
With lithium prices skyrocketing beyond wildest expectations, talk heating up about acquisitions and mergers in this space and a fast-brewing war among electric car rivals, itâs no wonder everyoneâs bullish on this golden commodity that promises to become the âânew gasolineâ.
Moreover, land grabs, rising price predictions, and expectations of a major demand spike are leaping out of the shadows of a pending energy revolution and a new technology-driven resource era.
For once, we have agreement across the board on a commodity: Demand for lithium will continue to rise throughout the year--and beyond--spurred by the rise of battery mega/gigafactories and a burgeoning energy storage business that will change the way we live.
Thatâs why Goldman Sachs calls lithium the ânew gasolineâ. Itâs also why The Economist calls it âthe worldâs hottest commodityâ, and talks about a âglobal scramble to secure supplies of lithium by the worldâs largest battery producers, and by end-users such as carmakers.â
(Excerpt) Read more at oilprice.com ...
How long ‘til the lefties are decrying, “big lithium”?
IIRC, China pretty much has a monopoly on the stuff.
Yawn. Ping me when they start using dilithium.
The greenies will love it when they start strip mining whole regions for lithium to power their “green” cars!
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Noticed that, did you?
You be right, China has been buying up Rare Erf deposits all over the globe for the past fifteen years.
No more cheap lithium? What a vicious cycle!!
That depresses me, and I need, really need lithium for my depression.
And here I thought it was the socialists, democrats and other GibsMeDats that caused the rush on Lithium medication.
Don’t worry, to go the way of the buggy whips and kerosene lamps. Filthy technology.
Elon Musk may very well be on life support instead of subsidy support with this news.
Even more hilarious now that oil is so cheap.
8 Top Lithium-producing Countries
[Australia, Chile, China, Argentina, Zimbabwe, Portugal, Brazil, United States]
America finds massive source of lithium in Wyoming
Where is it found and produced?
You’re probably thinking of the “rare earth” metals. Chile has over twice as much lithium as China. The oceans contain about 100,000 times as much. We’re not going to run out of this stuff — we’re just seeing the price mechanism kicking into gear. Higher prices lead to increased supply (and reduced demand); and, eventually a new (temporary) equilibrium. Just as fracking soon burst the oil and gas price bubbles; we can expect some new technologies will soon do the same for lithium.
Everything else is tanking in commodities. Had to find something else to run up to bubble proportions.
The U.S. Geological Survey produced a reserves estimate of lithium in early 2015, concluding that the world has enough known reserves for about 365 years of current global production of about 37,000 tons per year (Figure 1). Current production goes to a little over one-third for ceramics, almost one-third for batteries, and miscellaneous uses for the last one-third. The same report finds about 39.5 million metric tons of âresources,â which is a less firm category than âreserves.â “Resources” include supplies that could feasibly be extracted economically at some point in the future, whereas reserves estimates refer to current economic viability.
Even though 365 years of reserve supply sounds very comforting, the point of the EV and stationary storage revolutions is that current demand will shoot up, way up, if these revolutions do happen. The 100 Gigafactories scenario could come true. And if that happens, the 365-year supply would be less than a 17-year supply (13.5 million tons of reserves divided by 800,000 = 16.9 years
“Lithium is no longer available on credit.”
You’re quite right. I was thinking of the “rare earth” metals.
There’s only so much lithium on the planet, and politicians need it to get high, so...
Strange, I just saw hobby LIPO batteries for half the price they were two years ago.
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