The auto industry is going through a crisis. Some factors, such as logistical problems, the shortage of semiconductors and the environmental requirement of switching to electric cars in Europe are some of them. However, the most recent problem is with lithium, an essential product in the manufacture of electric car batteries.
With the increase in demand for the manufacture of this chemical element, its price has more than skyrocketed. According to S&P Global Platt's consultancy, the price increase is related to "panic buying". That is, those that happen with the aim of keeping reserves in case there is a possible shortage.
see more
IBGE opens 148 vacancies for Census Research Agent; see how…
Published law establishing the 'Program for the Acquisition of…
In China, the country responsible for 75% of the production of lithium used in batteries, the price increased by about 531% last January, compared to the same month in 2021. The cause of all this increase, according to research, lies in “structural scarcity”, since there is not enough lithium to produce so many batteries.
See more: Types of batteries – Advantages and disadvantages of each
Even if record numbers are being reached in the manufacture of electric cars, triggering a race to guarantee enough lithium for production, this issue is not new. Since December last year, Bloomberg has already shown that the progressive reduction in the cost of batteries would change its trend.
As the demand for electric cars increased, the price of batteries gradually followed demand. To understand the meaning of this, it is necessary to have the notion that lithium represents 40% of the value of batteries, and in current models, it is the essential material in anodes and cathodes.
In a way, with these increases in production, reducing the prices of electric cars remains complicated. Bad news, because even though it is a path to sustainable mobility, consumers still consider it an expensive product for the moment.
To reverse this situation, the way out might be to change the structure of the batteries. Thus, research shows that the future of electric cars lies in the production of solid state batteries. In these, storage promises 50% more autonomy, savings and fast charging. However, lithium would still be necessary.
Manufacturers believe that this battery will reach industries by the middle of this decade. But Benchmark CEO says lithium supply will catch up with demand by 2023. Thus, we can only trust and hope that other researchers find a cheaper substitute for lithium, capable of saving the future of industry and the environment.
