Lithium prices fall as demand for electric vehicles declines in China
[ad_1]
In 2023, the cost of a ton of lithium collapsed by 80%, to $13.2 thousand, which is the lowest level since 2020. As noted Financial Times (FT) citing data from analytical company Benchmark Mineral Intelligence, the prolonged decline in lithium prices is now supported by declining demand for electric vehicles in China and the resulting excess lithium in the market. Lithium is one of the key materials needed for the production of batteries and electric vehicles.
According to Goldman Sachs estimates, this year there is a surplus of 200 thousand tons of this metal in the equivalent of lithium carbonate on the market. That’s 17% of global demand, so the bank says “significant inventory cuts” will be needed to restore balance to the market.
Meanwhile, in China, which is the world’s largest electric vehicle market, demand for electric vehicles has slowed. Thus, in 2022, sales of this type of transport in China increased by 84%, 5.4 million electric vehicles were sold. But, according to preliminary data, growth slowed down in 2023, amounting to only 25%. Moreover, not long ago China announced about the discovery of Asia’s largest lithium ore deposit, which will also affect the cost of the metal.
On the development of lithium deposits in Russia – in material “Ъ”.
[ad_2]
Source link
