Hyperdrive
Lithium’s Next Big Risk Is Grand Supply Plans Falling Short
- Market unlikely to return to balance in 2023, says Trafigura
- Battery-metal’s rally has hurt carmakers like BYD or Tesla
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Electric-vehicle makers are hoping that an imminent wave of lithium supply will bring relief for their expansion plans after a two-year squeeze, but the battery metal’s die-hard bulls warn of more pain to come if producers fail to deliver.
Rampant lithium demand has caught many forecasters by surprise, with booming global EV sales causing consumption to double over the past two years. With suppliers unable to keep pace, a blistering price rally sent the total spot value of lithium consumption rocketing to about $35 billion in 2022, up from $3 billion in 2020, according to Bloomberg calculations.