Business — August 13, 2018 at 11:17 am

The Increasing Demand For Lithium Increase as EV Production Grows

a pile of batteriesThe general price of lithium carbonate mineral has significantly increased by almost 40 percent for the past 12 months, as numerous global electric vehicle (EV) manufacturing starts to affect the industry. According to a recent article published in U.S. Geological Survey, most technology companies in the United States and Asia are putting lithium supply security as their top priority.

Benchmarkminerals.com notes that the lithium business industry is currently facing a high demand caused by an increase in the global electric vehicle manufacturing. The company is producing the reference price for the lithium industry every month.

The Effect of China’s Lithium Prices​

The prices for lithium carbonate have recently fallen from USD 24,750 per ton in March 2018 to at least USD 21,000 per ton for EXW China. The sudden increase in demand for electric vehicles in China, together with its sustainable production of lithium battery compounds, has led to a more dynamic spot market for the past couple of years, Metal Bulletin wrote.

Since China produces lithium mineral domestically and is one of the key players in the lithium market, the global contract price negotiations have been affected. The lithium prices in the global market are still focalizing towards China’s market level at the USD17 to 21 per kg range. Experts say the lithium market still has a fine balance between supply and demand. The growing demand for battery and a slow supply response will keep the market stable for longer than some people may expect.

The latest prices will contribute to a greater price calculation for the raw minerals used by the producers of the Li-ion batteries, which are often used in some of the most well-known electric transport cathodes today.