The share of global electric cars will grow rapidly, so battery manufacturers will not be able to meet demand from the sector. This shows a recent study by experts from Rystad Energy.
The reason for this is that lithium production capacity, which is a key element in battery production, will decrease if investment in the development of new deposits is not increased.
At the current level of production, the deficit could increase 3 times the price of lithium by the end of this decade. Due to the growth of the electric car segment only between 2015 and 2018, the price of lithium increased by 160%.
–
The world’s largest lithium products: Get ready for mega price rallies
For the last 12 months the raw material has risen in price by 224%
–
In particular, experts point out that the current capacity can meet the demand in the automotive market, but the shortage has sharpened significantly from 2027 onwards.
This imbalance will increase significantly in the coming years and could lead to a slowdown in the production of millions of electric vehicles. There will be a risk even if the necessary investments are made in the mining industry, and the reason for this is that the development of the deposits will require more time.
Rystad Energy estimates that this will take between 5 and 7 years, including development, financing and infrastructure construction.
According to experts, by 2027, with current production levels and the growing share of electric cars, the production of about 3.3 million vehicles will be slowed down. By 2030, this “hole” in the market will grow to 20 million electric cars.
