Prices for lithium, one of the key ingredients for the
\nbatteries that power electric vehicles (EVs) and high tech devices, are expected
\nto climb in two years, when shortages in the market caused by curtailed
\nproduction and halted expansions start to emerge.<\/p>\n
Car sales, EVs included, have plummeted this year as global
\neconomic growth projections have already proved wrong as the coronavirus pandemic
\nhas hit global markets.<\/p>\n
In Western Europe alone, where EVs sales were supposed to soar this year, the acquisition of new car fell by 90% in April<\/a>.<\/p>\n But demand is set to pick up, says Benchmark Mineral Intelligence<\/a>, a battery supply chain researcher and price discovery company. And what that happens \u201cthe supply side won\u2019t be able to react quickly enough,\u201d Simon Moores, managing director at BMI, told Reuters<\/em>.<\/p>\n The London-based company, which also tracks battery Before coronavirus, lithium prices were in free fall due to an\u00a0avalanche of new supply<\/a>.\u00a0The glut, worsened by Beijing\u2019s cut in government subsidies for purchasers of EVs in China \u2014 the world\u2019s largest market \u2014 made majors tame their growth plans.<\/p>\n BMI had forecast supply at 572,000 tonnes for 2023, but now sees For this year, BMI sees global lithium output reaching 324,000 Chile\u2019s SQM, the world\u2019s second-largest producer of the Australia’s Wesfarmers (ASX: WES) delayed a final investment decision<\/a> on the Mount Holland project in Western Australia by a year to early 2021.<\/p>\n Albemarle (NYSE: ALB), the world\u2019s leader, has also had to The lithium giant showed further signs of distress early That was one of the first signs that the lithium industry is
\nmegafactory (>1Gwh capacity) construction around the globe, believes that
\nwhen demand comes back, lithium prices would bounce after 2022.<\/p>\n
\nthat number at 543,000 tonnes, with a shortfall of 8,000 tonnes. The company believes
\nthe deficit in later years to grow significantly.<\/p>\n
\ntonnes, with demand for the metals slightly lower, at 315,000 tonnes<\/p>\nGuilty of charge<\/strong><\/h2>\n
\nmetal, pushed back a key expansion<\/a> at its Atacama salt flat
\noperations from the end of 2020 to late 2021.<\/p>\n
\nadjust plans. It postponed last year a project to add about 125,000 tonnes<\/a> of
\nprocessing capacity. It also revised a deal to buy into Australia\u2019s Mineral Resources<\/a>\u2019 (ASX: MIN)
\nWodgina lithium mine and said it would delay building 75,000 tonnes of
\nprocessing capacity at Kemerton, also in Australia.<\/p>\n
\nthis month. It cut its 2020 budget and pulled its annual forecast amid the
\nglobal spread of the coronavirus.<\/p>\n
\nbeginning to feel the pain of falling EVs sales, which are projected to slide
\nfurther for the rest of the year.<\/p>\n