STLA - Lithium supplies may not be enough to meet EV demand - report
2023-06-23 08:14:01 ET
Concerns over a potential lithium shortage are growing amid delays in mine permitting, labor shortages and high inflation, Reuters reported. Lithium producers fear supplies may not be enough to meet the massive demand from electric vehicle makers.
As automakers aggressively push towards electrification, a potential lithium shortage could force them to accept lower-quality metal, which would decrease the range of an EV's battery.
"Investment has to continue, otherwise there will be more delays to (lithium) timelines that are already massively long," said Tara Berrie of EV maker Rivian ( RIVN ).
"There's a disconnect between the panic that we're seeing here, and the frenetic activity of trying to secure supply within the industry," Stu Crow, chairman of Lake Resources ( OTCQB:LLKKF ) said at a Fastmarkets conference. The Australian firm pushed back first production from its Kachi lithium project by three years, citing power supply and other logistics concerns.
According to Fastmarkets, there were 45 operating lithium mines last year, with 11 expected to open this year and seven next year. This pace is, however, far from adequate when compared to the outsized global demand.
Companies are racing to secure lithium supply even before mines are operational. Japanese conglomerate Mitsui ( OTCPK:MITSY ) is nearing a $65M deal with Atlas Lithium ( ATLX ) to guarantee supply from a Brazilian mine project that is yet to be completed.
Top lithium miners: Albemarle ( ALB ); Sociedad Quimica y Minera de Chile ( SQM ), Livent ( LTHM ), Lithium Americas ( LAC ), Sigma Lithium ( SGML ), Ganfeng Lithium ( OTCPK:GNENF ), Pilbara Minerals ( OTCPK:PILBF ).
Top EV stocks in play: Tesla ( TSLA ), Nio ( NIO ), General Motors ( GM ), Li Auto ( LI ), XPeng ( XPEV ), Lucid Group ( LCID ), Stellantis ( STLA ).
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Lithium supplies may not be enough to meet EV demand - report