Lithium prices have fluctuated sharply recently. The report provided by standard & Poor's global commodity watch shows that market participants believe that lithium prices have strong support, and the growth rate of demand far exceeds that of supply. This situation is not expected to change in the short term, and prices are expected to continue to rise in the future.
David capati, an electric vehicle market analyst at standard & Poor's global commodity watch, said that the average price of lithium and nickel in 2022 was 64% and 14% higher than that in 2021, respectively. The rise in metal prices has led to an average 25% increase in the cost of electric vehicle battery packs that widely use cathode chemistry technology. These price increases were passed on to carmakers, thereby raising the purchase price of cars. Tesla, Byd Company Limited(002594) , Xiaopeng and other companies have announced to increase the price of electric vehicles from $900 to $3000. Despite rising prices, sales of electric vehicles in major markets have increased year-on-year. Material cost monopoly forces automobile manufacturers to seek cooperation with upstream battery manufacturing and mining enterprises to reduce costs.
"Given the continued high cost of internal combustion engine vehicle parts and fuel, we believe that these price increases will not affect the market growth of electric vehicles in 2022." David capati said.
The report quoted relevant people as saying that battery recycling will help alleviate the shortage of lithium, cobalt and nickel. However, this effect is expected to appear around 2030.
