Nearly all crucial battery metals will witness supply deficits in the next decade as mining projects struggle to come online, Benchmark Mineral Intelligence analysts have said.
The research group that specializes in the electric vehicle supply chain believes that the world is already witnessing the “great raw material disconnect” impact the end user.
“Lithium-ion battery cell prices are set to increase for the first time in over a decade as the cost of raw materials now is counteracting the technological advancements that the industry has made over the last decade or so,” said Daisy Jennings-Gray, Benchmark’s senior price reporter, at an in-person seminar organized by the group along with Red Cloud Securities at the Omni King Edward Hotel on Apr. 26.
“We have seen multiple Chinese cell manufacturers announce cost increases… and it’s expected that these will begin to be passed down more… to the electric vehicles and the end use of these raw materials,” she added.
The demand for electric vehicles in the last few years as the world looks to meet its decarbonization goals. But the supply crunch in metals needed to make batteries for EVs, such as lithium, nickel and cobalt, have led to skyrocketing prices of these metals.