China's Companies Are Going to Any Length for a Hold on Lithium
The chip shortage that’s gripped the car industry by the throat is a reminder to EV executives of what might happen if they run short of the silvery metal.
Ganfeng's Recycling facility in Jiangxi, China.
Source: Ganfeng Lithium
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Automobile executives in China have had a lot to contend with this year. But those operating in the electric-car space (which is almost everyone these days) have had it especially tough. Not only has the world’s biggest EV market become even more crowded in 2021 but the explosive sales — deliveries are expected to more than double this year to around 3 million units — have led to soaring prices for raw materials. That’s also weighing on battery makers’ bottom lines and sparked heated competition globally for lithium resources.
The price of lithium carbonate has more than tripled since January, adding around $470 to the cost of making a battery-powered car, according to China Central Television. Tight supply has also been reflected in the price of other lithium materials. Companies in China that supply lithium have caught the attention of investors with shares of Tibet Summit Resources up 250% this year and Tianqi Lithium rallying 205%.