Lithium prices have skyrocketed over the past 18 months, and although the rally has lost some momentum recently, there is a reason why this metallic commodity used to make batteries is soaring.
According to the American “Oil Price” website, its prices have increased by more than 500% amid bottlenecks in the supply chain and strong demand for electric cars, but there are many strong reasons why it continues, including the lack of major mines expected That run over the next few years and the explosive growth of electric vehicles.
There are some major developments on the lithium scene.
electric cars
Heavy supply pressure is one of the biggest reasons lithium prices have soared over the past year, with The Goldman Sachs saying the most important “most significant” new lithium supply will come from China, as companies have invested in hard rock and saltwater projects. .
And manufacturers of electric car batteries and lithium-ion batteries are now moving to secure future lithium supplies; LG Energy Solutions has signed two memoranda of understanding with Canadian miners to secure lithium supplies, in an effort to establish a battery supply chain in North America.
LG Energy Solutions is one of the world’s best electric vehicle battery manufacturers; It supplies companies such as Tesla and General Motors.
The global electric car revolution has become an unstoppable current and a major factor driving strong demand for lithium, with forecasters saying clean energy that the battery supply chain will require major investments in the near term to avoid a supply crisis.
At the same time, the website stressed that the supply difficulties and global inflation that caused the decline in the battery cost trend are expected to be temporary, at a time when high gas prices continue to act as an incentive to switch to electricity.
Lithium prospecting
for the first time ever; Argentine miners begin mining for lithium, where they will begin work on a 20,000 hectares lithium mining project in Viampala, western Catamarca province, in partnership with local miner Catamarca Minera e Energitica.
The writer mentioned that Argentina is the fourth largest producer of lithium in the world with about 20 other projects currently under development, however; Almost all production is done by foreign or private miners, with no government involvement.
Argentina currently produces about 8% of the world’s lithium. However, it has great potential to grow its lithium production given that it is home to the second largest lithium reserve in the world at 19.3 million tons. “The island”