Lithium became a hot commodity since Tesla launched its electric vehicles using it (Horner, 2021, March 10). Tesla (TSLA) announced that it would build its own battery cells in 2022 and triple its lithium production at its mega factory in Nevada desert (Higgins & Somerville, 2020, September 23).
Lithium prices have been rising and will be on the rise due to high demand for electric vehicles that use lithium-ion batteries between 7% to 10% (Hoyle & Winning, 2021, April 19). Though depending on battery chemistry and product diversification, lithium industry is ready for the bumpy ride by gearing up for margin squeezing competitions and global market volatility.
For example, Lithium Americas Corp, is a Canadian mining company who raised $400 million in 2021 January to fund a Nevada project to take lithium out of clay deposits. Albemarle spent more than $30 milion dollar to assess the area and invested $30 to $50 million to produce lithium in Nevada (Patterson & Ramkumar, 2021, March 9). Other two: Piedmont Lithium and Livent also moved fast to catch up with market demand and competitions.
On the other hand, Orocobre Ltd. Agreed to buy its rival Galaxy Resources Ltd in all stock deal to be one of the world’s biggest lithium producer. This new miner would be the fifth-largest global lithium miner valued at USD $3.06 billion (Hoyle & Winning, 2021, April 19).
As Biden Administration has placed its heart in renewable energy infrastructure including electric vehicles, all eyes have been on lithium and lithium battery technology for a while. In addition, it might be wise to figure out what is going to be a wonderful industry in the future.
Cite this as follows:
Rachel Kim (2021, May 2). Lithium Battery on the Move, The Blue Ocean Management.com, retrieved from: https://theblueoceanmanagement.com/2021/05/02/lithium-battery-on-the-move/
Higgins, T. & Somerville, H. (2020, September 23). Tesla ‘Battery Day’ Spotlights Elon Musk Plan for $25,000 Electric Car, Wall Street Journal, retrieved from: https://www.wsj.com/articles/tesla-battery-day-elon-musk-shareholder-meeting-11600802500
Patterson, S. & Ramkumar, A. (2021, March 9). America’s Battery-Powered Car Hopes Ride on Lithium. One Producer Paves the Way, Wall Street Journal, retrieved from: https://www.wsj.com/articles/americas-battery-powered-car-hopes-ride-on-lithium-one-producer-paves-the-way-11615311932
Hoyle, R. & Winning, D. (2021, April 19). Lithium Miners Ink $3 Billion Merger as Demand for Electric Vehicles Booms,Wall Street Journal, retrieved from: https://www.wsj.com/articles/lithium-miners-ink-3-billion-merger-as-demand-for-electric-vehicles-booms-11618827032
Horner, W. (2021, March 10). Booming Electric-Vehicle Demand Supercharges Lithium Prices, Wall Street Journal, retrieved from: https://www.wsj.com/articles/booming-electric-vehicle-demand-supercharges-lithium-prices-11615391390