Crazy rise in lithium prices Electric cars are in trouble
Lithium is the nerve of the electric battery industry in cars and others, its prices rise sharply during this period. It would seem that the future in relation to this metal is still ambiguous.
Why prices are clearly rising and what levels have you reached.
There is a crazy rise in lithium prices by more than 300% in just twelve months, in which lithium prices rose, in which the price of a ton of lithium reached more than 72.000 dollars per ton in China, and according to these graphs, the price of a ton reached record levels above the level of five hundred thousand yen per ton in China.
And we are talking about that even investing in lithium, according to the leader of the world electric car industry Elon Musk, says that refining lithium will be like a license to print money, referring to this scarcity and this rise in prices in relation to lithium.
It will generate a lot of money for those working in this field to the point that he personally talked about the establishment of a lithium plant and lithium refinery in Texas in order to save.
The cost of producing electric cars and electric batteries, which are taking a lot of measures to try to develop them, develop their lifespan, and develop the distances through which they can be recharged and electric cars and others.
Lithium is not only used in electric cars but also in other parts that work electronically or in electronics parts, meaning we are talking about one of the Chinese companies.
Which is one of the largest companies in the world in the production of lithium and the production of lithium-related products in China ganfeng lithium is talking about it will reassess the prices of its products due to the huge and crazy rise in lithium prices and therefore will of course adjust the prices of its products by increasing.
If we also look at the nio company, which is trying to compete heavily in the field of industries or the manufacture of electric cars, the Chinese company nio saw its profit margin decline in the second quarter from about thirteen percent, and these are strong declines, if we look at it, the profit margin in the corresponding quarter of last year was fourteen, an interval of six percent.
Also a pressure factor and we have seen profits decline or lose about four hundred and ten million dollars, during the second quarter of this year.
Sqm, which is a major lithium production company in the world and the second largest lithium producer in the world, says that the market expectations are very limited. And it seems that China is one of the largest.
The countries that process and produce lithium, but not only China, but also we are seeing that the world's lithium reserves are exported:
- Chile 9.2 million metric tons of reserves.
- Australia 4.7 million metric tons.
- Argentina 1.9 million metric tons.
- China is distracting as well as the United States.
So lithium is the currency. The fact that electric cars are running and operating significantly affects car prices and also poses great challenges to the idea of reducing carbon emissions and dispensing with cars powered by fuel and internal combustion to switch to electric cars.